Shree Cement is “contemplating setting up new cement and power plants in Karnataka, Chhattisgarh and Rajasthan” in the future.
According to the annexure to the notice for a resolution relating to increasing borrowing limit to INR3500 crore from INR2000 crore, the BG Bangur-controlled company is looking at the various investment opportunities in cement and power sectors.
This is in addition to company’s current expansion plans in Rajasthan – 1Mta clinker unit at Ras and 1Mta grinding unit near Jaipur. The present cement capacity of the company stands at 12Mta and its power plant capacity is 210 MW.
The company reported a sharp fall (64 per cent) in net profit at INR105.94 crore in the first quarter to June 30, 2010 against INR291.13 crore in the corresponding quarter in the previous fiscal.
Drop in realisation and increase power and fuel costs were responsible for this, the company said. It further said that over the last 2-3 months, excess capacity and some slowdown in demand had been exerting pressure on realisation. It felt, the near term outlook for cement industry appeared sluggish.