Shree Cement to Invest Rs. 2,000 Crore in New Cement Manufacturing Plant in Maharashtra
Shree Cement Limited, one of India’s top three cement producers, has announced plans to invest Rs. 2,000 crore for setting up a new cement manufacturing plant in Kondala, located in the Chandrapur district of Maharashtra. This upcoming plant will have a cement manufacturing capacity of 2 Million Metric Tonnes Per Annum (MMTPA).
Shree Cement Signs Letter of Intent with Maharashtra Government
Shree Cement has signed a Letter of Intent (LoI) with the Government of Maharashtra for the establishment of its upcoming cement plant in the state. The project will include construction of new cement production lines along with development of supporting infrastructure and logistics facilities.
According to Mr. Hari Mohan Bangur, Chairman of Shree Cement, the company has already acquired land for this project. However, specific details regarding the size of the land parcel have not been disclosed. The company plans to finance the entire development through internal accruals. Construction of the plant is expected to be completed within a period of approximately two years.
Expansion Aligned with Long-Term Capacity Targets of Shree Cement
The upcoming Maharashtra plant of Shree Cement will play a crucial role in helping the company to achieve its production target of 80 Million Metric Tonnes Per Annum (MMTPA) by 2028, up from its current installed capacity of 68.8 MMTPA. Beyond this, the company has outlined plans to further scale up its cement production capacity to 100 MMTPA.
Shree Cement’s Ongoing Capacity Additions Across India
To meet its long-term capacity expansion targets, Shree Cement is undertaking multiple development initiatives across various regions of India. These include the commissioning of a 3.65 MMTPA clinker unit at Jaitaran in Rajasthan. In addition, the company’s 3 MMTPA cement manufacturing plant at Kodla in Karnataka is currently in its final stages of development and is expected to be commissioned within the third quarter of FY 2025–26.
Strong Demand Outlook for India’s Cement Sector
According to a report by the India Brand Equity Foundation (IBEF), India’s cement demand is expected to maintain a strong growth trajectory, with a projected increase of 7–8% in FY26. This growth is being driven primarily by large-scale government housing schemes such as the Pradhan Mantri Awas Yojana (PMAY), along with investments in infrastructure development projects.
In FY25, India’s cement production increased to around 453 million tonnes (MT), compared to 426.29 MT in FY24, registering a year-on-year growth of 6.3%. Looking ahead, India’s cement demand is projected to grow at a compound annual growth rate (CAGR) of 7–8% up to FY29, providing a favorable environment for capacity expansions by major players such as Shree Cement.
