The Hindu Business Line : Shree Cement plans Rs 2,000-cr unit in MP

Mumbai, Feb. 14 Close on the heels of acquiring mining rights for limestone in Madhya Pradesh, Shree Cement has chalked out a Rs 2,000-crore plan to set up a cement plant of 2 million tonne per annum.

“The new unit will have an option to increase the capacity by one million tonne at a later stage. Once on stream, it is expected to push the turnover close to Rs 700 crore,” said Mr Rakesh Dalmia, corporate head of Shree Cement Ltd.

The new factory is expected to be functional by mid-2010.

Shree Cement will pump in Rs 600 crore from internal accrual, while Rs 1,400 crore will be raised through debt, Mr Dalmia said.

The company is also planning to set up a 35 MW plant near the factory.

Shree Cement has recently signed a memorandum of understanding with the Chhattisgarh Government for limestone exploration.

With a cement making unit in Madhya Pradesh, the company plans to tap the real estate market in Chhattisgarh, Karnataka, Bihar and Gujarat.

The company has recently set up a 3,000 tonnes per day greenfield cement manufacturing unit at Ras in Pali district of Rajasthan at a cost of Rs 300 crore.

The company is targeting a cement manufacturing capacity of 20 mt per annum by 2012. “Having invested about Rs 2,500 crore in the business so far, we expect to breakeven in two years,” Mr Dalmia said.

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