Shree Cement Limited plans to invest ₹7,000 crore in cement manufacturing facilities in Kadapa, Anakapalli and Guntur districts, expanding its presence in Andhra Pradesh. Vice-President Sumanth Gautham outlined the investment on 12 November 2026 on the sidelines of the Confederation of Indian Industry (CII) Partnership Summit in Visakhapatnam. He cited state incentives and the pace of industrial land allotment as factors in the company’s decision.
Where will Shree Cement invest in Andhra Pradesh?
The plan spans inland Kadapa, coastal Anakapalli and Guntur, where Shree Cement already operates an integrated cement plant. The ₹7,000 crore is the proposed investment across the three districts. The company did not disclose the allocation by district, the exact sites or how much cement capacity each project would add. The announcement also gave no construction or commissioning dates.
Gautham said the incentives offered by the government led by Chief Minister N Chandrababu Naidu helped draw the investment to Andhra Pradesh. He also pointed to the speed of the state’s land allotment process for industrial projects. The company’s announcement identified the districts targeted for investment, with individual project details still to be disclosed.
What capacity does Shree Cement already have in Guntur?
Shree Cement commissioned its integrated plant at Dachepalli in April 2024. The facility was built at an investment of more than ₹2,500 crore and has an annual cement production capacity of three million tonnes. The company’s latest annual report also lists waste heat recovery and solar power facilities at the Guntur site. The November announcement did not specify whether the proposed Guntur investment would expand Dachepalli or involve a separate site.
How does the investment fit into Shree Cement’s capacity plans?
The Bangur family-promoted producer is targeting more than 80 million tonnes of annual cement capacity across its operations. Its 2025–26 annual report listed 69.3 million tonnes per annum (MTPA) of installed capacity in India and a further 4 MTPA in the United Arab Emirates. At the time of the Visakhapatnam announcement, the group’s installed capacity was put at around 75 MTPA. The contribution of the three proposed Andhra Pradesh projects to the group target remains undisclosed.
What has Shree Cement disclosed about freight and dispatch?
Shree Cement’s wider logistics strategy includes investment in railway infrastructure to reduce its reliance on road dispatches. Its annual report identifies rail sidings as a way to move cement, clinker, fuel and raw materials and says the company aims to nearly double rail’s share of its freight mix over the next few years. The Andhra Pradesh announcement gave no site-specific details on rail sidings, port connectivity or dispatch routes.
FAQs
How much does Shree Cement plan to invest in Andhra Pradesh?
The company plans to invest ₹7,000 crore across proposed cement manufacturing facilities in Kadapa, Anakapalli and Guntur.
Does Shree Cement already operate a cement plant in Andhra Pradesh?
Yes. Its integrated plant at Dachepalli in Guntur district has been operational since April 2024 and can produce three million tonnes of cement a year.
When will the proposed plants start production?
Shree Cement did not announce a commissioning timetable or plant-wise production capacity at the Visakhapatnam summit.
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