Key takeaways from Shree Cement management meet: Setting up of an integrated cement plant at Gothra, Nawalgarh (Rajasthan) having a clinker capacity of 3.8 mtpa and cement capacity of 3.5 mtpa — capex of about ₹3,500 crore is earmarked for this project and financing will be done through internal accruals and debt.
The plant is likely to get operational by Q4-FY24; setting up a clinker grinding unit of 3 mtpa at Village Digha and Parbatpurin, Purulia (West Bengal) through the company’s wholly-owned subsidiary SCEPL — capex planned for this plant is about ₹750 crore and financing will be done through equity contribution from SCL. The unit is expected to get operational in Q1-FY24.
Setting up of integrated cement plant at Guntur district of Andhra Pradesh with a clinker capacity of 1.5 mtpa and cement capacity of 3.0 mtpa — total capex is ₹2,500 crore to be funded through internal accrual and debt.
H1-FY23 was impacted owing to elevated cost; H2-FY23 will see the positive impact of lower commodity prices along with higher demand and realisation. Cement demand is expected to be robust in FY23 and FY24 on account of higher government spending on housing and infrastructure as well as due to the upcoming general election in 2024.