The Hindu : Business : Shree Cement plans to double capacity

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Tuesday, Oct 30, 2007
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Shree Cement plans to double capacity

Special Correspondent

Eyes southern location for a project

KOLKATA: H M Bangur group company Shree Cement Ltd. (SCL) is planning to double its production capacity even as it takes effort to look for locations outside its home State, Rajasthan, where it has five units now.

Sources said that talks were on with the Karnataka Government regarding thepossible location of a project.

Meanwhile, the company has already signed an agreement with the Madhya Pradesh Government for setting up a six-million tonne plant along with a 50-MW captive power project. “The Rs. 2,000-crore project will be placed before the board only after SCL gets firm allotments on its limestone requirements,” a company official said.

Fifth unit by June 2008

SCL, which has four complete cement units, besides grinding and clinker units, will commission its fifth unit (a clinker) by June 2008. This will take its capacity to 10 million tonnes from eight million tonnes now. This is proposed to be doubled to 20 million tonnes by 2012 through units located elsewhere.

A company release said that SCL has an operating margin of 45 per cent. It closed the second quarter of 2007-08 with a turnover of Rs. 466.40 crore and a net profit of Rs. 106 crore.

The Bangurs and their group have a 63.7 per cent equity holding while FIIs have a 7 per cent holding. Individuals have a 5.8 per cent holding while MFs hold 6.3 per cent.

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