Shree Cement on Thursday said it will invest INR3,500 crore to expand its cement production capacity by 7Mt in the next five years. "We have a production capacity of 13Mt, which we will expand to 20Mt by 2015," Shree Cement Managing Director HM Bangur said on the sidelines of 49th annual meet of Cement Manufacturer’s Association.
Asked about the investment on capacity expansion, he said it would be INR3500 crore. Bangur said the company would meet the investment through internal accruals and debt. Bangur said the company was in the process of setting up a greenfield cement plant in Karnataka.
Shree Cement has plants in Rajasthan and Uttarakhand, and sells cement under Shree Ultra, Bangur and Rockstrong brands. The company is also into the power sector with a generation capacity of 210MW, which is set to go up to 560MW by December 2011.
In June, the Kolkata-based firm had entered into a memorandum of understanding with the Karnataka government to invest INR2000 for setting up a cement unit and a power plant.
The company had said it would invest INR1500 to set up a cement plant, with an annual capacity of 3Mt and the remaining INR500 crore on putting a 100MW power plant into operation.
The mining lease has been allotted to the company for the cement plant and both the projects have received green signal from the High Power Committee of the government of Karnataka, the company had said.