The Hindu Business Line : Shree Cement plans capacity expansion

SHREE Cement Ltd, the flagship company of the BG Bangur Group, has set a target of increasing its annual production capacity to 10 million tonnes by the end of 2010.

At present, the annual capacity of Shree Cement, based in Rajasthan, is three mt. Sources said the top management team was already busy exploring options to reach the production target. It was also looking at suitable locations for capacity expansion.

"Recognising the growth potential in the cement industry over the next few years, driven by strong economic growth and improving demand-supply balance, the management had set this challenging target," the sources said. Meanwhile, the company is carrying out a Greenfield expansion project. The new plant will be located in Pali district of Rajasthan. "The new project is at a distance of about 32 km from the existing plant and offers significant synergy in terms of operational efficiency, management control and cost optimisation. The plant will be one of the most modern cement plants in India and produce high-quality cement at economical cost," the sources said.

The products from the new plant would be placed in the premium segment of the domestic market and sold under a new brand name, Bangur Cement.

In 2004-05, Shree Cement registered a turnover of Rs 723 crore, marking a growth of 19 per cent over the previous year. Cement production was 30.16 lakh tonnes and the plant recorded capacity utilisation of 116 per cent against the industry average of 84 per cent. Profit after tax more than doubled to Rs 29.07 crore from Rs 13.04 crore in 2003-04. The company declared a dividend of 40 per cent.

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