Shree Cement Ltd, which runs the largest single-location integrated cement factory in northern India, will set up a cement plant in Chhattisgarh with an investment of Rs 1,000 crore.
The proposal to set up a plant in Chhattisgarh is seen as part of Shree Cement’s plans to build 10Mta cement capacity by 2011.
The company has signed a pact with the Chhattisgarh government for its proposed project in the state.
Besides a 1.90Mta clinker plant, Shree Cement plans to set up a 2.9Mta cement plant. The executive director of Shree Cement, MK Singhi, signed the agreement on behalf of the company while the additional chief secretary of the state industries and commerce department, P Joy Oommen, represented the state government.
In November 2005, Shree Cement completed its 1.2Mt greenfield cement plant at Ras in Pali district of Rajasthan at an investment of Rs 300 crore.
With the commissioning of Ras cement plant, its capacity increased from 2.6Mt to 3.8Mt.
Company executives said 86 per cent of Shree Cement’s output was sold in north Indian markets while 14 per cent was sold in central India.
The company sells products under two brand names: Shree Ultra Ordinary Portland Cement and Shree Ultra Red Oxide Cement, a blended cement. Besides Ras. It has a 2.6Mta plant in Bhiwadi at Rajasthan.