Shree Cement Ltd. has proposed to expand its clinker and cement manufacturing capacity across the country in order to expand its business operations. The proposed investment for the same is pegged at Rs 7,000 crore.
The company proposes to add a clinker manufacturing plant of 3.65 million tonnes at Pali in Rajasthan and a cement capacity of 6 million tonnes in Pali, Rajasthan and Etah in Uttar Pradesh.
Additionally, the company also has also proposed a clinker manufacturing plant of 3.65 million tonnes at Kodla and cement capacity of 6 million tonnes in Kodla and Bengaluru in Karnataka.
The capacity is proposed to be added by the quarter ending March 2025. The capex is expected to be funded through a combination of internal accruals and debt.
As of date, the company's existing cement capacity, including that of its wholly-owned subsidiary is 49.9 million tonnes per annum. During financial year 2023, the utilisation rate of the company stood at 70 percent.
Besides the capex, the company's board has also decided to make strategic investments in Ready Mix Concrete (RMC), commencing with a plan to set up five such units by the end of the current financial year. The quantum of the investment the company plans on making in this segment is not specified.
Shree Cement reported its June quarter earnings today wherein the net profit was aided by an other income component, while EBITDA was in-line with expectations. The company's volumes at 8.92 million tonnes were in-line with expectations.
Shares of Shree Cement are trading 1.5 percent higher at Rs 24,032.55.
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