Shree Cement to invest Rs 7,000 crore in Andhra Pradesh; plans plants in 3 districts

Visakhapatnam: Shree Cement Ltd, the country's third-largest cement group by capacity, will invest Rs 7,000 crore to set up manufacturing plants in Andhra Pradesh, a senior company official said on Thursday.

The Bangur family-promoted company plans to establish cement plants in three districts - Kadapa, Anakapalli and Guntur - Shree Cement Vice President Sumanth Gautham said on the sidelines of the Visakhapatnam CII Summit.

The investment decision follows the incentives offered by the coalition government led by Chief Minister N Chandrababu Naidu and the investor-friendly environment in the state, he said.


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"The company decided to invest in the state after taking note of the incentives being offered to investors by the coalition government led by Chief Minister N Chandrababu Naidu and the investment-friendly environment here," he said.

Gautham expressed satisfaction over the pace of land allotment for industrial projects, saying the process was moving quickly and encouraging investors to set up operations in Andhra Pradesh.

Shree Cement currently has an installed production capacity of around 75 million tonnes per annum (MTPA).

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Besides India, the company also has offshore manufacturing facilities in the UAE.

The company is relentlessly pursuing its goal of having more than 80 million tonnes of production capacity in the coming years.

According to CRISIL Ratings, the Indian cement industry had an estimated installed capacity of around 720-730 million tonnes per annum (MTPA) as of March 2026.

The industry is witnessing a fresh wave of capacity expansion, with leading manufacturers stepping up investments to strengthen their production capabilities and expand their geographical footprint amid expectations of sustained demand growth from increased expenditure by the government in big-ticket infra projects and incentives for rural India.

Companies are pursuing both greenfield projects and brownfield expansions to cater to rising demand from infrastructure development, housing, roads and other construction activities.