Shree Cement Announces Greenfield Capex Plan in Andhra Pradesh
Recently, Shree Cement has announced a Greenfield CapEx in Andhra Pradesh. The company has approved setting up an Integrated Cement Plant-First in the state. The plant would commission by Dec-2024 (FY25). The limestone for the project would be sourced from the capital mine. New Capex Plan includes Clinker Capacity of 1.5 MTPA, Cement Capacity of 3.0 MTPA and Investment required is Rs 2500 Cr. An important observation for this Capex is it looks attractive as compared to industry standards. The 3 MTPA integrated cement plant at a CapEx of Rs. 2500 crore translates to $107/tonne at current exchange rate which is lower compared to industry standard of over $150/tonne for setting up a Greenfield cement unit. The company has ongoing expansion plans in East (3MTPA– WB) and North (8.5MTPA– Rajasthan and Punjab). These expansion projects are likely to be completed in next 2-3 years. Shree Cement has only 3mtpa capacity (6% of total) in South – in Karnataka. The new addition is in line with company’s guidance of increasing its capacity.
Tags : Shree Cement Greenfield Capex Plan Andhra Pradesh Integrated Cement Plant-First India