Having announced that it will not participate in bidding for Emami Cement, Shree Cement has announced a planned increase to its production capacity of at least 13.1 MT per year to 55.0 MT per year or more by February 28, 2023 from 41.9 MT per year. It would do this through as yet undisclosed upgrades worth a total of $1.26 billion. The Business Standard newspaper has suggested that the measure is aimed at taking on UltraTech, the expected winner in the auction for Emami Cement's 5.6 MT per year-capacity installed assets (under expansion to 8.7 MT per year).
A source of additional capital for Shree Cement's planned expansion will be a qualified institutional placement (QIP) through which it has raised $337 million. The company acknowledged that it might reach its target through acquisitions from other producers, for which it would not exceed $80 per tonne of capacity.