Shree Cement's plans to 80 mt capacity 2030
Cement

Shree Cement's plans to 80 mt capacity 2030

Shree Cement, under the leadership of Vice Chairman Prashant Bangur, remains committed to exploring acquisition opportunities, but only if they are available at the right price. The company recently missed out on acquiring Sanghi Industries, which was ultimately bought by Adani-owned Ambuja Cements in August for an enterprise value of Rs 50 billion , with Shree Cement's bid being considerably lower.

Bangur emphasised that the company would consider acquisition opportunities anywhere in the country, as long as they make financial sense in terms of valuation. He acknowledged that acquisitions in the industry are somewhat of a gamble. These remarks were made during the Statecon event, an annual real estate conference organised by CREDAI West Bengal.

While actively pursuing inorganic growth options, Shree Cement is also intensifying its organic growth plans. West Bengal Chief Minister Mamata Banerjee inaugurated a three million-tonne grinding unit in the Purulia district, virtually. This addition brings Shree Cement's total cement production capacity to 50 million tonnes, requiring an investment of approximately Rs 7.50 billion.

Prashant Bangur revealed that the company would unveil more projects in the upcoming weeks, encompassing both brownfield and greenfield initiatives, as part of their roadmap to reach a capacity of 80 million tonnes by 2030.

In July, the company announced its next phase of capacity expansion projects, aiming to raise its cement capacity to 72.4 million tonnes with a capital expenditure of around Rs 70 billion. These projects are located in Rajasthan, Uttar Pradesh, and Karnataka.

Shree Cement's ongoing capital expenditure programs involve an integrated unit in Nawalgarh, Rajasthan, which is expected to be operational in Q3 FY24, and a plant in Guntur, Andhra Pradesh, targeting commissioning in Q2 FY25.

Shree Cement's strategic plans align with the industry's broader trend towards consolidation, as prominent players like UltraTech, Ambuja-ACC, Dalmia, and JSW are actively seeking to expand their market share. A CRISIL report from June noted that the top five players held a 55 per cent volume share in the previous fiscal year, compared to 49 per cent before the Covid-19 pandemic.

Shree Cement, under the leadership of Vice Chairman Prashant Bangur, remains committed to exploring acquisition opportunities, but only if they are available at the right price. The company recently missed out on acquiring Sanghi Industries, which was ultimately bought by Adani-owned Ambuja Cements in August for an enterprise value of Rs 50 billion , with Shree Cement's bid being considerably lower.Bangur emphasised that the company would consider acquisition opportunities anywhere in the country, as long as they make financial sense in terms of valuation. He acknowledged that acquisitions in the industry are somewhat of a gamble. These remarks were made during the Statecon event, an annual real estate conference organised by CREDAI West Bengal.While actively pursuing inorganic growth options, Shree Cement is also intensifying its organic growth plans. West Bengal Chief Minister Mamata Banerjee inaugurated a three million-tonne grinding unit in the Purulia district, virtually. This addition brings Shree Cement's total cement production capacity to 50 million tonnes, requiring an investment of approximately Rs 7.50 billion.Prashant Bangur revealed that the company would unveil more projects in the upcoming weeks, encompassing both brownfield and greenfield initiatives, as part of their roadmap to reach a capacity of 80 million tonnes by 2030.In July, the company announced its next phase of capacity expansion projects, aiming to raise its cement capacity to 72.4 million tonnes with a capital expenditure of around Rs 70 billion. These projects are located in Rajasthan, Uttar Pradesh, and Karnataka.Shree Cement's ongoing capital expenditure programs involve an integrated unit in Nawalgarh, Rajasthan, which is expected to be operational in Q3 FY24, and a plant in Guntur, Andhra Pradesh, targeting commissioning in Q2 FY25.Shree Cement's strategic plans align with the industry's broader trend towards consolidation, as prominent players like UltraTech, Ambuja-ACC, Dalmia, and JSW are actively seeking to expand their market share. A CRISIL report from June noted that the top five players held a 55 per cent volume share in the previous fiscal year, compared to 49 per cent before the Covid-19 pandemic.

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