Our strategic focus is on enhancing our production capabilities to meet the increasing demand.
Sanjay Mehta
President – Procurement and Corporate Affairs, Shree Cement
How do you view the growth of the cement industry in India with construction activities on the rise?
The growth of the cement industry in India is closely intertwined with the expansion of the construction sector. This is evident from the industry's robust performance in recent years, where we witnessed a significant increase in demand driven by large-scale infrastructure projects and housing developments.
The growing construction sector is boosting demand for cement across India, leading to increased capacity utilization for cement manufacturers. As a result, we anticipate new cement capacity additions in the near future.
Increased cement production is also creating additional demand for new limestone resources which is a crucial component in cement production. Thus, strong participation is expected from major industry players in upcoming limestone block auctions.
At Shree Cement, we view this market scenario as an opportunity. Our strategic focus is on enhancing our production capabilities to meet the increasing demand, while also integrating sustainable practices into our operations. Our ability to scale operations rapidly has been a key factor in our success. We have strategically expanded our production capacity, now standing at 56.4 million tons per annum (MTPA), and are targeting over 80 MTPA by 2028 through the organic route. With the construction industry expected to maintain its upward trajectory, Shree Cement is well-positioned to support this growth by providing high-quality, sustainable cement products that meet the evolving needs of the sector.
What are the innovations in your product range?
At Shree Cement, we continue to identify and implement new technologies and leverage opportunities to innovate our processes and drive growth, while optimizing the use of natural resources.
Innovation is at the heart of Shree Cement’s development strategy, driving our efforts to meet the evolving demands of the construction industry while promoting sustainability. We continuously experiment with new ideas to enhance energy efficiency, reduce costs and develop high-quality products. Our research capabilities are reinforced by our state-of-the-art laboratories located across northern, eastern and southern India, and recognized by the Department of Scientific and Industrial Research (DSIR).
Our product range includes advanced and sustainable cement solutions designed to enhance performance, durability, and environmental responsibility. We are the trailblazers in manufacturing synthetic gypsum to replace natural gypsum consumption, underscoring our commitment to environmental conservation. We have achieved patents for improved processes and plant developments toward synthetic gypsum manufacturing.
Another one is the production of blended cements which incorporate fly ash and Ground Granulated Blast-furnace Slag (GGBS). These materials not only enhance the strength and longevity of the cement but also contribute to significant reductions in CO2 emissions by lowering the clinker content. We further explored the manufacturing of Limestone Calcined Clay Cement (LC3) at lab scale. Being a low-carbon alternative to OPC, LC3 demonstrates the huge potential to reduce CO2 emissions related to cement manufacturing.
Our Ready-Mix Concrete team has recently produced a special type of concrete - Self Compacting Concrete, which is in a liquid state and can flow in every direction in congested places. It has zero compaction needs, giving the ultimate freedom to design complex structures.
What are the sustainability initiatives of the company in its operations and products?
Sustainable development has become a key focus not only for Shree Cement but also for the entire cement industry. Cement manufacturers are increasingly turning to green cement solutions, reducing clinker usage and promoting blended cement. Leading cement companies have announced their commitments to a carbon-neutral future, supporting India's efforts to achieve net-zero emissions by 2050.
India's cement industry has earned a reputation as one of the greenest cement producers in the world, primarily due to its high production of blended cements.
At Shree Cement, sustainability is guiding every aspect of our operations and product development. Our sustainability initiatives are comprehensive and aimed at reducing our environmental impact while contributing to global climate goals.
One of our most significant achievements is reaching a renewable energy share of 55.9% in FY24, the highest in the Indian cement industry. This milestone was achieved through substantial investments in renewable energy sources, including solar, wind, and Waste Heat Recovery (WHR) systems. Our total power generation capacity has now reached 1 GW, with more than 50% of this coming from green sources. This aligns with our long-term goal of achieving 100% renewable electricity by 2050, as part of the RE100 initiative.
What is your vision on India as the third-largest construction market globally?
India’s position as the third-largest construction market globally is both an achievement and a testament to the country’s rapid growth and development. This milestone reflects the massive infrastructure investments, urbanization and housing developments taking place across the nation.
The current relatively lower intensity of infrastructure facilities in India has significant potential for growth. Further growth in the construction market, supported by both public and private investments, can initiate a development cycle that significantly boosts the economy across all sectors.
At Shree Cement, we see this as an opportunity to play a pivotal role in shaping India’s future. Our vision is to support the nation’s growth by providing high-quality, sustainable cement products that are essential for building the infrastructure required for continued economic development.
What is your Mission 2025 for the company?
As India continues to grow and urbanize, we are focused on expanding our production capacities, investing in new technologies and adopting best practices that will allow us to contribute effectively to the nation’s infrastructure needs and economic prosperity, while driving sustainable growth, innovation and leadership within the cement industry. Our goal is to achieve a cement production capacity of over 80 MTPA by 2028. To achieve this target, we plan to commission 13 more plants, with five of them scheduled to be operational in FY25.
This capacity addition will largely be organic and a testament to the company's sustainable growth strategy. Not only will it increase production capacity, but it will also create over 10,000 new employment opportunities, contributing to the local economy and providing livelihoods for many people. In addition to capacity expansion, we are committed to achieving significant sustainability milestones. By 2030, we aim to reduce our Scope 1 emissions by 12-13% and Scope 2 emissions by 27-28% compared to 2019 levels. These targets are part of our broader commitment to reducing our carbon footprint and aligning our operations with global climate goals.
We are also looking to increase our renewable energy share and enhance our reliance on clean energy sources. We plan to further invest in solar and wind energy projects, explore advanced energy storage solutions, and integrate electric trucks into our logistics operations. These initiatives will not only improve our energy efficiency but also contribute to our long-term goal of achieving 100% renewable electricity by 2050.
Through these efforts, Shree Cement aims to set new benchmarks for sustainability and innovation in the cement industry, ensuring that our growth is both responsible and forward-looking.
