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Shree Cement scouts for ally

Calcutta, Nov. 5: Shree Cement, the Rs 554-crore Bangur group flagship, is looking for a strategic investor in order to raise the production capacity of its Beawar unit in Rajasthan. The unit’s existing capacity stands at 2.6 million tonnes per annum, which will be doubled after the expansion.

Sources said the company needs a strategic partner not only to pump in more funds but also to strengthen the marketing network. The company had earlier held talks with a number of potential buyers for its cement plant but the negotiations failed to bear fruit.

“We have now decided to add more value to the plant so that we can extract a good price as and when we get a serious buyer. Our option is open, now let interested buyers come to us with good offers,” they said. They added that a plant of Shree Cement’s stature should get a price of Rs 5,000 per tonne of cement produced.

Shree Cement, which registered a turnover of Rs 397 crore for the nine-months ended March 31, has set a target of achieving a turnover of Rs 600 crore during the current financial year.

“We are optimistic that we will be able to run our plant at 100 per cent capacity this year, which will reduce the cost of production quite substantially. The previous best production figure stood at 2.38 million tonnes,” a senior company executive said.

The company is investing Rs 130 crore this fiscal to set up a 36 MW captive power plant and to modernise its Beawar cement plant.

The official said that Rs 120 crore will be invested in the power project while the remaining portion of the investible fund has been earmarked for modernisation purposes.

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