Shree Cement Ltd today said it will invest Rs 1,200 crore (US$239.04m) in the current financial year to expand its production capacity, including setting up two greenfield plants and installing four captive power plants.
The Kolkata-based firm will have a total cement manufacturing capacity of 11.5Mta after the expansion, up from the existing nine million tonnes a year.
"We will invest Rs 1,200 crore in expanding our existing cement capacities as well as setting up new facilities. We will also set up new power plants to expand power generation capacity by 145 MW in 2009-10," Shree Cement Managing Director H M Bangur said.
He said the two new cement plants would be set up in Rajasthan and Uttarakhand, with a capacity of 1Mta each. The company currently has three cement manufacturing units in Rajasthan.
Bangur said all the four new captive power plants would be installed at the company’s cement units in Rajasthan, which would increase the power production capacity to 265 MW from the current 120 MW.
"Out of the total investment, Rs 600 crore will go to the power plants while the rest will be infused for the cement (capacity) expansion and infrastructure development of the company," Bangur said.