**Shree Cement to Invest ₹2,000 Crore in New Maharashtra Plant**
Shree Cement Ltd, India’s third-largest cement manufacturer, has announced plans to invest ₹2,000 crore to establish a new plant in Maharashtra. The announcement was made during the World Hindu Economic Forum (WHEF) 2025, where a letter of intent (LoI) for the investment was signed in the presence of Maharashtra Chief Minister Devendra Fadnavis in Mumbai.
The company plans to construct a plant with a capacity of 2 million tonnes per annum (mtpa) in the Chandrapur district, where land has already been acquired. Hari Mohan Bangur, chairman of Shree Cement, stated that they are currently awaiting environmental clearance, which is in progress. Once approved, the plant is expected to be operational within two years.
To fund this expansion, Shree Cement will utilize its cash reserves, which stood at ₹6,541 crore at the end of the 2024-25 fiscal year. Currently, the company has a total capacity of 62.8 mtpa. Recently, Shree Cement commissioned a 3.65 mtpa clinker unit in Jaitaran, Rajasthan, with a 3 mtpa cement mill set to begin operations soon. Additionally, a 3 mtpa integrated plant in Kodla, Karnataka, is nearing completion and is expected to be operational by the third quarter of 2025-26.
Following these expansions, Shree Cement’s capacity is projected to increase to 68.8 mtpa, with expectations to reach between 72-75 mtpa by FY27E. Analysts suggest that the company could potentially achieve an 80 mtpa capacity by FY28E or FY29E, depending on market demand.
However, there are concerns regarding medium-term risks, as industry capacity expansions may outpace demand growth through FY28-29, particularly in North and West India, where significant new capacities are anticipated. Recent trends indicate a sharp decline in cement prices, especially in the eastern and southern regions, although a potential recovery in pricing is expected from January onwards.
This announcement follows similar capacity expansion plans from other major players in the Indian cement industry. UltraTech Cement recently raised its capacity target from 167 mtpa to 240 mtpa by 2027-28, while the Adani Group also increased its target by nearly 10% to 155 mtpa by the same year.
In the September quarter, Shree Cement reported a 15% increase in revenue, reaching ₹4,303 crore compared to the previous year, driven by volume growth and a focus on premiumization. The company’s Chief Financial Officer, Ashok Bhandari, indicated a capital expenditure of approximately ₹3,000 crore for FY26-27 during a recent earnings call.
**FAQ**
**What is Shree Cement’s new investment in Maharashtra?**
Shree Cement plans to invest ₹2,000 crore to establish a new plant in Maharashtra with a capacity of 2 million tonnes per annum, expected to be operational within two years after receiving environmental clearance.
