The Hindu Business Line : Shree Cement adding 3 mt capacity

New Delhi May 10 Shree Cement Ltd, the flagship company of the BG Bangur Group, is currently undertaking a 3 million tonnes per annum (mtpa) brownfield capacity expansion plan.

This would enable the Rajasthan-based cement firm to ramp up its manufacturing capacity from 6 mtpa at present to about 9 mtpa by the middle of next year. The company, which operates almost entirely in the Northern markets, is also eyeing a pan-India market presence in the near future.

Pan-India Presence

"We are working on a capacity expansion plan, with 3 mtpa in the pipeline. Of this 1.5 mtpa is slated to go on stream by July 2007 while the remaining 1.5 mtpa is expected by July 2008," Shree Cement's Managing Director, Mr H.M. Bangur, said. The company is looking at stepping beyond its traditional Northern market to gain a pan-India presence.

The company has a significant presence in its home market of Rajasthan, besides other markets including Haryana, Western Uttar Pradesh, Punjab and Delhi.

"With critical volumes being achieved in the Northern markets, we are looking at a pan-India presence," Mr Bangur said.

He said the company, which is one of the most cost effective cement producers in the country, has been undertaking a slew of cost-cutting initiatives and management practices aimed at paring production costs even further.

These include switching over to captive power units to meet the company's power requirements almost entirely. Initiatives within the company, including worker feedback-driven measures on efficiency improvement, are being implemented, he said.

Other measures include cooler fans being configured to a higher capacity so that heat could recuperate better. Also, a better raw material mix has helped Shree Cement reduce the proportion of high cost limestone.