Synopsis: With the northeast running a persistent cement deficit, Shree Cement’s board has approved a greenfield integrated plant in Meghalaya at Rs. 1,800 crore, its first production facility in the region; the 0.99 MTPA addition targets commissioning by March 2028.
Shares of the country’s third-largest cement maker came into focus on Saturday after its board approved a greenfield integrated plant in Meghalaya, where the company currently has no production capacity.
With a market capitalization of approximately Rs. 83,725.38 crore, the shares of Shree Cement Limited were trading at Rs. 23,220 per share, up 0.41 percent from its previous closing price of Rs. 23,125. It is trading at a P/E of approximately 46.45.
Capacity addition update
The board has approved an integrated cement plant with a clinker capacity of 0.95 MTPA and a cement grinding capacity of 0.99 MTPA at Village Daistong in East Jaintia Hills District, Meghalaya. The filing notes the existing capacity at this location as nil, confirming this is a pure greenfield project. The targeted commissioning window is the quarter ending March 2028, leaving roughly seven quarters for permits, site preparation, and construction.
At Rs. 1,800 crore for 0.99 MTPA, the implied cost works out to approximately Rs. 1,818 crore per MTPA of cement capacity, which is not unusual for an integrated plant in hill-state terrain. Financing comes from internal accruals and debt. With FY25 operating cash flows at Rs. 4,920 crore and borrowings of Rs. 2,142 crore as of September 2025, the balance sheet can absorb this outlay, provided the schedule holds.
Why Meghalaya?
The northeast has long imported cement from eastern India and, in some pockets, from Bangladesh. Per-capita consumption there runs below the national average, and government spending on roads and border infrastructure has kept construction activity steady. Shree Cement has moved progressively east over the last decade, with plants in Bihar, West Bengal, and Jharkhand forming the current frontier; Meghalaya is the next step out.
At 0.99 MTPA against a 46.4 MTPA base, this adds just over two percent to total capacity. The point is not volume. It gives the company a local production point in a market it currently serves at a freight disadvantage, which is the more durable competitive argument.
Business Overview
Incorporated in 1979, Shree Cement is among India’s lowest-cost cement producers, selling under the Bangur, Shree, and Rockstrong brand names. The company reported consolidated revenue of Rs. 4,801 crore and a net profit of Rs. 268 crore for the December 2025 quarter, with PAT up approximately 38 percent year-on-year. ROCE for the trailing period stands at 6.71 percent, compressed partly by elevated depreciation charges from prior large-scale capacity additions.
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