Cementing the Future: Sagar Cements' ₹470 Cr Plan

Sagar Cements has announced major expansion plans for its manufacturing facilities, targeting increased cement production capacity across multiple plants during FY26 and FY27. The Jeerabad Plant will see an additional 0.50 million tonnes (MT) of capacity, while the Gudipadu Plant will add 0.25 MT.

The Jeerabad expansion, involving a ₹120 crore capex, will be funded through a mix of debt and internal accruals. Meanwhile, at the Dachepalli Plant of Andhra Cements, a six-stage preheater has been successfully constructed and commissioned on 23 October 2025, following successful trial runs. Additionally, a 6 MW solar power plant has been installed at Dachepalli. The facility has also completed a clinker capacity expansion to 2.31 MT, with its cement capacity now reaching 3.00 MT.

The company’s total planned capital expenditure for these initiatives amounts to ₹470 crore, with ₹75 crore invested in FY25, ₹150 crore in H1 FY26, ₹145 crore budgeted for H2 FY26, and the balance scheduled for FY27.

In line with its sustainability goals, Sagar Cements is also ramping up investments in green energy, including waste heat recovery (WHR) and solar power projects across multiple locations by FY29. Key initiatives include a WHR system at Gudipadu and solar installations at Mattampally and Jeerabad, aimed at reducing the company’s environmental footprint while enhancing energy self-sufficiency.

News by Rahul Yelligetti.