Shree Cem to hike capacity

Shree Cement Ltd (SCL) has set a target of 10 million ton capacity by March 2010.

H M Bangur, managing director of SCL, said that the board has approved in-principle a three million ton capacity addition. The management would now work out the details of the expansion.

He added, "We have decided to set up a greenfield project of three million ton but not decided the location. Our target is to become a 10 million ton company by the end of the decade." The company currently has three plants at two different locations in Rajasthan with a total capacity of 4.5million ton.

According to SCL MD, the company had estimated an investment of Rs 800 crore for the greenfield expansion.

The company would set up the new plant at a location where limestone was available in plenty. "Availability of limestone is critical for the project. We do not want to set up a plant at a location where limestone is not available because we are looking at a clinker and grinding plant. This could be in Rajasthan or in South India too," he said.

It may be noted the company does not have a clinker unit in the eastern region.

Bangur said the company would have a capacity of 7.5 million ton by September 2007 as it was expecting that the ongoing expansion would be completed by then.

SCL is currently expanding its existing units in Beawar and Ras in Rajasthan. "Once our existing browfield expansion is completed then we shall have a capacity in excess of 7.5 million ton," he added.