Shree Cement plans unit in Madhya Pradesh

Shree Cement plans unit in Madhya Pradesh
15 February 2008

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.
Published under Cement News