Shree Cement, the biggest in the northern region, is to set up a clinker plant in Raipur, Chhattisgarh. This is the first time the company is expanding its presence outside Rajasthan.
HM Bangur, managing director, said, “We have been acquiring the land for the last two years and have got partial success. We have acquired 75 per cent of the area and once completed, we will first put up the clinker plant.”
In April 2007, nine cement companies had each signed a memorandum of understanding (MoU) with the Chhattisgarh government for new cement plants and expansion of existing ones. A year later, the MoU’s were put on a back burner. Now, after four years, Shree Cement has revived its plan.
Shree was expected to add 1.5Mt of grinding capacity by April 2011 to its existing 12Mta, taking the total to 13.5Mta. Apart from the northern region, where cement prices have reached a record high, it has been supplying to the central region, too.
Jinesh Gandhi, research analyst with Motilal Oswal Securities, wrote in a note to last month: “Shree Cement has been gradually diversifying into the central region and now derives 72 per cent of its volumes from North India and 28 per cent from Central India.”