Shree Cement announces investment plans
Shree Cement Ltd, one of India’s top three cement makers, has budgeted for a capital expenditure of ?3,500 crore in the current financial year, which includes ?2,000 crore to be spent to conclude the acquisition of a United Arab Emirates-based (UAE) firm.The Abu Dhabi-based company has concluded a buyback programme and is to be taken private. The fully diluted cost of acquiring the overseas firm is expected to be around ?2,000 crore. But that wouldn’t hobble Shree Cement’s plans to scale up production capacity within India: the company will spend at least ?1,500 crore in the current financial year to acquire land and set up grinding units in Odisha, Jharkhand, Maharashtra and West Bengal. An investment of ?1,300-1,400 crore has been budgeted to set up the grinding units in these states, which will ramp up Shree Cement’s production capacity by 7-8 million tonnes (mt) from 34.9 mt currently.
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