Homebusiness News

Shree Cement announces capex in line with target to reach 80 mtpa capacity by 2030

business | IST

Shree Cement announces capex in line with target to reach 80 mtpa capacity by 2030

Mini

Shree Cement’s capex announcement is in line with their intent to reach an 80 mtpa capacity by 2030. The firm will set up an integrated plant in Rajasthan, a grinding unit in west Bengal and a number of solar power plants at several locations, HM Bangur, MD, Shree Cement said.

Shree Cement will set up an integrated cement plant in Rajasthan, a grinding unit in West Bengal and a number of solar power plants at various locations. The company’s capex announcement is in line with its intent to reach an 80 million tonnes per annum (mtpa) capacity by 2030.
HM Bangur, MD, Shree Cement told CNBC-TV18 that the company is spending something between Rs 4,500 crore and Rs 5,000 crore to come onstream for the three projects – Rs 500 crore for the power plant, Rs 750 crore for the West Bengal grinding unit, and the rest for the integrated unit in Rajasthan’s Nawalgarh.
He said the Rajasthan unit is a greenfield unit with a lot of overburden to be removed for getting the limestone. While the West Bengal unit is expected to be completed in less than two years, the solar power plant work to bring down costs should be completed within a year, he said.
Shree Cement is sitting on a cash balance of Rs 8,000 crore.
Bangur believes that the cement cost pressure is so high that nobody can sustain it at the present price.
He expects the demand to go up by 15-20 percent this year for the industry. “This year’s COVID-19 situation is far better compared to last year. Overall, the demand scenario will be about 7 percent compounded annual growth rate (CAGR) on a sustainable level is the assumption that we are working,” he added.
Bangur, however, noted that cement prices will increase irrespective of demand or else the business will not be sustainable.
On acquisitions, he said, “Whatever acquisitions are in the market, we are also looking at it. We are also in the play for Andhra Cement.”
For the full interview, watch the accompanying video.
next story

Market Movers

Currency

CompanyPriceChng%Chng