Shree Cement Announces ₹2,000 Crore Investment for New Maharashtra Plant

• ₹2,000 crore investment planned for a 2 mtpa cement plant in Chandrapur

• Land acquired; project awaits environmental clearance

• Capacity expected to rise to nearly 69 mtpa after ongoing expansions

Shree Cement Ltd, India’s third-largest cement manufacturer, has announced plans to invest ₹2,000 crore to set up a new cement plant in Maharashtra, marking another significant expansion in its national footprint. The announcement was made on Friday during the World Hindu Economic Forum (WHEF) 2025.

A letter of intent (LoI) for the project was signed in Mumbai in the presence of Maharashtra Chief Minister Devendra Fadnavis, signalling the state government’s support for fresh industrial investment.

According to Shree Cement Chairman Hari Mohan Bangur, the company has already finalised and acquired land in Chandrapur district for the proposed unit. The upcoming plant will have a capacity of 2 million tonnes per annum (mtpa). However, construction will begin only after the company receives the required environmental clearance.

“We are in the process of securing environmental approvals. Once cleared, the plant should take about two years to be completed,” Bangur said while speaking on the sidelines of the event.

The company plans to fund the project entirely through its internal accruals. As of the end of FY25, Shree Cement reported a cash balance of ₹6,541 crore, giving it sufficient financial flexibility to support ongoing and future expansions.

At present, Shree Cement operates with a total cement capacity of 62.8 mtpa. The company has been steadily adding new assets across regions. In the second quarter of FY26, it commissioned a 3.65 mtpa clinker unit at Jaitaran in Rajasthan, with a 3 mtpa cement grinding unit at the same location expected to begin operations shortly. Additionally, a 3 mtpa integrated cement plant at Kodla in Karnataka is nearing completion and is likely to be commissioned within the third quarter of FY26.

Following these additions, Shree Cement’s total capacity is expected to rise to 68.8 mtpa, according to an ICICI Direct Research note dated October 29. Analysts further estimate that capacity could increase to 72–75 mtpa by FY27, with potential to reach 80 mtpa by FY28 or FY29, depending on demand conditions.

Industry analysts, however, caution that the medium-term outlook carries some risks. Capacity additions across the cement sector may outpace demand growth through FY28–29, particularly in north and west India, where several large projects are planned. Despite this, cement prices have already seen sharp corrections in recent quarters, especially in eastern and southern markets, which could lead to some recovery from January onwards.

Shree Cement’s expansion comes amid aggressive growth plans by major peers. UltraTech Cement recently raised its capacity target to 240 mtpa by FY28, while the Adani Group has increased its cement capacity goal to 155 mtpa over the same period.

On the financial front, Shree Cement reported a 15% year-on-year rise in revenue to ₹4,303 crore in the September quarter, driven by higher volumes, premium product focus, and a value-over-volume strategy. The company’s management has guided for capital expenditure of around ₹3,000 crore in FY26–27, with similar spending levels expected in FY27–28.