Shree Cement’s ₹2,000 Cr Maharashtra Expansion

Shree Cement has announced an investment of ₹2,000 crore to establish a 2 million tonnes per annum (MTPA) cement manufacturing plant in the Kondala area of Chandrapur district, Maharashtra. The proposed unit forms part of the company’s three-year expansion strategy to increase its overall cement capacity from 68 MTPA to 80 MTPA.

Hari Bangur, Chairman of Shree Cement, said the company has a strong and long-standing presence in Maharashtra, including a successfully operating grinding unit in Pune. He noted that land acquisition for the new project is nearly complete, the Terms of Reference (ToR) have been received, and the project is currently awaiting environmental clearance. “Once environmental clearance is granted, it will take approximately two years for the plant to become fully operational. The total investment is estimated at around ₹2,000 crore,” Bangur said.

Highlighting the growth potential of India’s cement market, Bangur pointed out that per capita cement consumption in India stands at about 350 kg, which is significantly lower than the global average. He added that consumption is expected to move closer to international levels of 600–1,000 kg per person in the coming years.

On funding, Bangur stated that the company plans to utilise more than ₹5,000 crore of its internal cash reserves and does not intend to rely on borrowings for expansion, preferring to fund growth through internal accruals.

Commenting on industry dynamics, he noted that Shree Cement is currently the third-largest cement producer in India, after Ultratech and the Adani Group’s ACC and Ambuja Cements. He added that further expansion plans are under consideration, and once the 80 MTPA capacity target is achieved post-2028, the company may explore increasing its capacity to 100 MTPA.

News by Rahul Yelligetti.