Shree Cement Pledges ₹8,350 Crore Investment in Karnataka
Shree Cement Limited has committed a staggering ₹8,350 crore investment to expand its footprint in Karnataka, cementing the state’s position as a thriving industrial hub. The move, unveiled at the prestigious Global Investors Meet 2025 in Bengaluru, will result in massive infrastructure development, enhanced cement production capacity, and the creation of thousands of employment opportunities.
The MoU between Shree Cement and the Government of Karnataka was signed by Chief Minister Siddaramaiah and Shree Cement’s Managing Director, Neeraj Akhoury, marking the beginning of a transformative phase for the state. This significant investment signals Shree Cement’s intent to not only bolster its manufacturing capacity in South India but also contribute substantially to Karnataka’s industrial and economic growth trajectory. Shree Cement’s investment will span across three major projects, all strategically designed to enhance the state’s cement production capacity. The first project, an integrated cement plant in Kalaburagi, will have an investment of ₹2,500 crore. This state-of-the-art facility will increase clinker production to 3.5 MTPA and cement production to 3 MTPA, generating approximately 300 direct jobs. Expected to be completed in 2025, this facility will also provide indirect employment in allied sectors such as logistics and construction.
The second project is a ₹850 crore clinker grinding unit in Bengaluru Rural, set to be operational by 2028. With a 3 MTPA capacity, this unit will cater to the region’s booming real estate and infrastructure demands while providing 250 direct jobs. The third and most ambitious project is a ₹5,000 crore mega cement plant in Kalaburagi, slated to increase the region’s cement output significantly. This plant, planned in two phases, will produce 6 MTPA of cement and employ 750 people directly upon its completion in 2030. Karnataka has become a prime destination for industrial investments, and Shree Cement’s expansion into the state reflects this growing appeal. With ongoing infrastructure projects such as the Bengaluru-Mysuru Expressway and suburban rail networks, the demand for cement in Karnataka is expected to soar. The investment aligns seamlessly with the state’s industrial growth, with Shree Cement poised to meet the demand surge.
The ₹8,350 crore investment is expected to have far-reaching implications for Karnataka’s economy. It will generate over 1,300 direct jobs and thousands of indirect jobs, particularly in sectors like logistics, raw material supply chains, and construction. Additionally, the infusion of capital into the cement industry will create a ripple effect, stimulating demand for transportation, housing, and small businesses in the region. Shree Cement is also focused on sustainability. Known for its eco-friendly cement production methods, the company’s investments will not only contribute to the region’s growth but also ensure that the development is sustainable and energy-efficient.
The Karnataka government has pledged its full support for the smooth execution of these projects, providing essential permissions, infrastructure support, and incentives for industrial investments. The state’s investor-friendly policies have played a pivotal role in attracting such a large-scale commitment from Shree Cement. As one of India’s leading cement manufacturers, Shree Cement continues to focus on innovation, quality, and sustainability. The company is on a path to exceed 80 MTPA in cement production capacity in the coming years, with Karnataka’s new investments forming a crucial part of this expansion. By integrating cutting-edge technology and green initiatives, Shree Cement aims to lead the way in sustainable building materials.
This monumental investment by Shree Cement is not just about increasing production capacity; it’s about driving economic growth, creating jobs, and contributing to the overall industrial development of Karnataka. The ₹8,350 crore commitment marks a new chapter in the state’s economic journey, positioning it as a leader in industrialisation and infrastructure development. With Karnataka poised for transformative growth, Shree Cement’s investments will pave the way for sustainable development, contributing to both the local and national economy. As the projects begin to take shape, they will continue to drive Karnataka’s growth, further cementing its place as one of India’s most dynamic industrial regions.
