Shree Cement to set up a ₹2,000 crore plant in Maharashtra
Shree Cement Ltd will invest ₹The World Hindu Economic Forum (WHEF) on Friday announced that Rs 2,000 crore will be allocated to set up a new plant in Maharashtra, India’s third largest cement producer, in 2025.
The letter of intent (LoI) for the proposed investment was signed in Mumbai in the presence of Maharashtra chief minister Devendra Fadnavis.
“We will set up a 2 million tonnes per annum (mtpa) plant in Maharashtra. We have already completed and acquired land in Chandrapur district,” said Hari Mohan Bangur, chairman of Shree Cements. Mint On the edges of WHEF. Bangur said, “We are waiting for the environmental cleaning. It is in the process. It will take two years for the facility to be put into operation after it is cleaned.”
The company will use cash reserves to finance the expansion. Had a cash balance ₹6,541 crore by the end of 2024-25.
Currently Shree Cement’s capacity is 62.8 million tonnes/year. In the second quarter of 2025-26, the company commissioned a 3.65 mtpa clinker unit at Jaitaran, Rajasthan and the 3 mtpa cement mill is expected to become operational there shortly. The 3 mtpa integrated plant at Kodla (Karnataka) is in final stages and will be commissioned in the third quarter of 2025-26.
According to an October 29 ICICI Direct Research note, the cement maker’s capacity will rise to 68.8 mtp per annum following ongoing expansions.
Capacity is expected to reach between 72-75 mtpa by FY27E and capacity is expected to reach 80 mtpa by FY28E or FY29E depending on demand trends, ICICI analysts wrote in their notes.
Satyadeep Jain, chief analyst, cement, metals, mining and utilities at Ambit, said: “There is a medium-term risk as industrial capacity expansions are likely to outpace demand growth during FY28-29. This risk is highest in the North and West as significant new capacity is expected to arrive in western and northern India. However, cement prices fell sharply in Q3, especially in the eastern and southern regions. From January onwards, there may be some recovery in pricing, especially in the South and East,” said Capital.
Industrial capacity increase
The announcement comes in the wake of the latest capacity expansion plans by India’s largest cement players. On October 18, the country’s largest cement producer UltraTech Cement increased its capacity target from 167 mtp to 240 mtp per annum by 2027-28. Days later, on November 3, Adani Group increased its cement production capacity target by nearly 10% to 155 mtpa by 2027-28.
Shree Cement reports 15% increase in revenue ₹4,303 crore in the September quarter compared to the previous quarter. This was driven by “volumes, premiumisation drive and value over volume strategy”, the company said in a statement.
During a second-quarter earnings interaction with analysts, Ashok Bhandari, the company’s chief financial officer, said about ₹3,000 crore in FY 26-27 and capex for FY 27-28 is generally expected to remain in the same range.
Shree Cement shares closed 0.18% lower on Friday, while benchmark Sensex shares closed 0.53 higher.
