Shree Cement goes abroad after land acquisition woes hit projects at home

However, the company has initiated the process of acquiring land in different parts of India for future projects

Shree Cement decided to venture abroad in the UAE after acquiring the Union Cement Company (UCC) for an enterprise value of $305.24 million because the company was facing the slow pace of land acquisition in the country, which delays the projected completion date of putting up cement plants.   

Shree Cement Managing Director H M Bangur reasoned that the company had a near Rs 40 billion cash balance, which was stockpiling, and was faced with two options -- either invest in some venture that would assure growth and higher returns for the shareholders or pay off the balance as dividends.