The Hindu : Business : Shree Cement to set up new plant

Online edition of India's National Newspaper
Saturday, May 06, 2006

Business

Business

Shree Cement to set up new plant

Corporate Reporter

To invest Rs. 700 crore

CHENNAI: Shree Cement is planning to set up another 1.5 million tonne per annum capacity cement plant (Unit-V) at Pali district in Rajasthan.

The company is already operating a cement plant of 1.5 mtpa (Unit III) at the above site while the work on another cement unit of 1.5 mtpa capacity (Unit IV) is under implementation.The board, at its meeting held on May 5, has decided to set up cement grinding capacity of 2 mtpa at Village Khuskhera near Bhiwadi in Rajasthan.

In a communication to the stock exchanges, the company said to meet the additional power requirement, the company had decided to set up another new captive power plant of 18 MW. It is already implementing a 36 MW capacity power plant. The total investment envisaged in the above new capacity (Unit V and grinding unit) is around Rs. 700 crore. With the completion of the above capacity during 2007-08, the company expects to achieve production of 9.1 million tonnes in 2007-08.

Shree Cement has reported a total income of Rs. 671.16 crore in the 12 months ended March 31, 2006 against Rs. 586.17 crore in the corresponding period of the previous year, a growth of 14.5 per cent. But the net profit has declined to Rs. 18.40 crore from Rs. 29.07 crore. The company has recommended a dividend of 50 per cent for 2005-06 against 40 per cent in 2004-05.

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