Shree Cement acquires 5 operational plants in MMR
Shree Cement has entered the Ready Mix Concrete (RMC) business through the acquisition of five operational plants in the Mumbai Metropolitan Region (MMR) of Maharashtra, marking a significant expansion of its product portfolio.
Shree Cement announced its venture into the Ready Mix Concrete (RMC) business by acquiring five operational RMC plants in the Mumbai Metropolitan Region (MMR), Maharashtra.
The acquisition, made through an asset purchase agreement with StarCrete LLP, represents a strategic expansion for Shree Cement into a new business domain. The plants collectively have an aggregate capacity of 422 cubic meters per hour, and the acquisition is valued at Rs 33.50 crore.
This move into the RMC business allows Shree Cement to tap into the construction boom in MMR, positioning the company to supply key construction projects in the region. The strategic location of these plants is expected to bolster Shree Cement's growth in the RMC sector. Additionally, the company is actively working on setting up greenfield RMC plants at various locations, aiming to establish a greenfield footprint in the RMC business by the end of March 2024.
Neeraj Akhoury, the Managing Director of Shree Cement, highlighted the strategic significance of the foray into the RMC segment. He noted that entering the RMC market aligns with the company's vision to become a multi-product entity centered around its core cement business. The RMC segment presents a lucrative growth opportunity, driven by governmental infrastructure projects and a surge in housing construction. Shree Cement intends to leverage its expertise in the cement segment to deliver high-quality, environmentally friendly RMC products.
Shree Cement, one of India's leading cement producers, reported a substantial increase in its standalone net profit for Q3 FY24, demonstrating the company's financial strength and market position. The entry into the RMC business reflects Shree Cement's strategic approach to diversification and growth, reinforcing its commitment to expanding its product offerings and market presence.
