Shree Cement, India's country’s third-largest cement group, plans to increase its share in its existing markets by offering varied products based on requirements of different customers and improving distribution as a short-term goal.
“We are envisioning an increase in installed capacity to 80Mta by 2030, exploring new geographies through both the organic and inorganic routes,” Prashant Bangur, joint managing director, Shree Cement, told shareholders in the company’s annual report for FY21-22. The company is setting up an integrated cement plant at Nawalgarh in Rajasthan with a project cost of INR35,000m (US$442.7m).
Shree Cement’s production capacity stood at 46.4Mta as of March 2022. The company said in its annual report that to maintain and grow market share, it has been adding capacities in the markets where the demand-supply situation is favourable and there is no or low cannibalisation with the existing plant. “Our continued thrust on building a brand equity through high quality products being readily available in the market has helped us consolidate our market share,” it said.
The company has 14 manufacturing locations with a presence in 10 states. During the last fiscal, it commissioned two new cement/ clinker projects: a third kiln with 4Mta capacity in Raipur district of Chhattisgarh and a 3Mta greenfield project in its grinding unit in Patas, Pune. The greenfield project will help the company strengthen its market share in Maharashtra.
“We are in the process of setting up an integrated cement plant at Nawalgarh in Rajasthan with a project cost of INR35,000m The project will have a waste heat-based power generation facility as well. We expect to commission this plant by March 2024,” the company said. It is also setting up a cement grinding unit of 3Mta in West Bengal through a wholly-owned subsidiary.
“Our short-term goal is to improve market share in our existing markets by offering varied products based on requirements and preferences of our different customers at a reasonable price, and improve distribution,” Shree Cement said in its FY21-22 annual report.
Shree Cement has been deploying its cash surplus to enhance its production capacity, improve efficiency and diversify to new markets. The company, which has been a dominant player in northern India, has expanded operations to the eastern and southern markets.
