Shree Cement to invest Rs 450 cr by mid-2010

Kolkata-based Shree Cement today said it will invest Rs 450 crore to increase the annual capacity of its existing units in Rajasthan by 2  million tonnes by mid-2010.

It is also looking to set up greenfield units in Karnataka, Rajasthan and Chhattisgarh.

"We will invest Rs 450 crore to raise capacity at our three plants in Rajasthan by 2 million tonne annually. This project will be undertaken by mid-2010," Shree Cement Managing Director H M Bangur told reporters on the sidelines of the International Seminar on Cement and Building Materials here.

He said the investments will come from the company's internal accruals.

"We are also looking to set up greenfield cement plants in Karnataka, Rajasthan and Chhattisgarh," Bangur said, without giving further details.

The company's current annual installed capacity is nine million tonnes.

Shree Cement has fixed a capex of Rs 600 crore for the November 2009  to June 2010, he said, adding: "We have a cash reserve to the tune of Rs 1,900 crore, while our existing debts are of Rs 1,500 crore."

Last month, the company had announced its foray into the commercial power business with an investment of Rs 1,200 crore in the next two years to set up a 300 Mw thermal power plant in Rajasthan.