Shree Cement commissions 1 mn tn clinker capacity

MUMBAI: Shree Cement has commissioned an additional 1 million tonnes of clinker capacity, which is expected to help the company ramp up its annual cement production capacity to nearly 10.0-10.3 million from 9 million tonnes, depending upon its blending ratio. The company is understood to have incurred a capex of Rs 250 crore for this additional clinker capacity.

The ramp-up in cement production capacity is expected to be realised in higher cement dispatch figures from May ���09, point out analysts at domestic brokerage houses, as it typically takes a few months for a new production facility to stabilize.

However, the company is expected to incur part of the depreciation costs in FY ���09 itself. The company���s depreciation amounted to Rs 50.93 crore in the first nine months of FY 09. The stock rose 2.1 % to Rs 630 in early Tuesday trade.