Sagar Cements has announced a significant capital investment of Rs 330 crore for the current financial year, reflecting the company’s commitment to expansion and modernization. A major portion of this investment, between Rs 250 crore and Rs 270 crore, is earmarked for enhancing the Andhra Cements’ plant. Additionally, Rs 20 crore is allocated for a new six MW solar plant at Gudipadu, Andhra Pradesh. Further investments of approximately Rs 20 crore each will be made in projects at Jeerabad and Gudipadu.
These capital expenditures are aimed not only at increasing production volumes but also at modernizing facilities to reduce long-term operational costs. The company’s strategic investments are part of a broader initiative to enhance efficiency and support sustainable growth.
In terms of capacity utilization, Sagar Cements achieved volumes of about 5.51 million metric ton (MT) in FY24, slightly below their projected target of 5.6 million MT. Looking ahead, the company has set an ambitious target of 6.5 million MT for FY25, driven by strong demand from infrastructure projects and urban real estate developments.
Sagar Cements is also making strides towards sustainability, with a goal of sourcing 50 per cent of its power from green energy by 2030. The company’s commitment to green energy is exemplified by the planned solar plant at Gudipadu. The move towards sustainable energy sources is expected to reduce costs and environmental impact in the long term.
The company reported a 19 per cent growth in volumes for the fourth quarter of FY24, contributing to a 14 per cent increase for the entire financial year. This growth trend is expected to continue, supported by robust demand in key markets.
Sagar Cements’ comprehensive investment plan underscores its focus on sustainable growth, efficiency, and meeting the increasing demand in the cement industry.