Close on the heels of acquiring mining rights for limestone in Madhya Pradesh, Shree Cement has chalked out a Rs 2,000-crore plan to set up a 2Mta cement plant.
“The new unit will have an option to increase the capacity by 1Mt at a later stage. Once on-stream, it is expected to push the turnover close to Rs 700 crore,” said Rakesh Dalmia, corporate head of Shree Cement Ltd.
The new factory is expected to be functional by mid-2010.
Shree Cement will pump in Rs 600 crore from internal accrual, while Rs 1,400 crore will be raised through debt, Dalmia said.
The company is also planning to set up a 35MW plant near the factory.
Shree Cement has recently signed a memorandum of understanding with the Chhattisgarh Government for limestone exploration.
With a cement making unit in Madhya Pradesh, the company plans to tap the real estate market in Chhattisgarh, Karnataka, Bihar and Gujarat.
The company has recently set up a 3000tpd greenfield cement manufacturing unit at Ras in Pali district of Rajasthan at a cost of Rs 300 crore.
The company is targeting a cement manufacturing capacity of 20Mta by 2012. “Having invested about Rs2500 crore in the business so far, we expect to breakeven in two years,” Dalmia said.