Shree Cement Plans ₹7,000 Crore Investment in Andhra Pradesh Across Three Districts

Shree Cement is preparing to make an entry into Andhra Pradesh, with plans to invest ₹7,000 crore in manufacturing plants across three districts. The proposed facilities are planned for Kadapa, Anakapalli and Guntur, according to a company official who spoke on the sidelines of the CII Partnership Summit in Visakhapatnam.

The investment would extend the footprint of one of India’s largest cement producers into a state seeking to attract industrial activity. Shree Cement Vice-President Sumanth Gautham said the company’s decision followed the incentives offered by the coalition government led by Chief Minister N Chandrababu Naidu, along with what it sees as an environment for investors.

The pace of land allocation was a factor, Gautham indicated. He said the process for allotting land to industrial projects was moving quickly, helping build confidence among companies considering new operations in the state. The company has not yet disclosed the proposed capacity, project-wise investment split, land requirements or construction schedule for the three locations.

Shree Cement currently has installed production capacity of around 75 million tonnes per annum. It also operates manufacturing facilities in the United Arab Emirates and has stated an ambition to take its total capacity beyond 80 million tonnes in the coming years. The Andhra Pradesh projects would add to its multi-state manufacturing network, although the company has not provided a timeline for when the proposed plants could begin production.

The investment comes as cement manufacturers across India pursue capacity additions to serve demand from housing, roads and large infrastructure projects. CRISIL Ratings estimated the country’s installed cement capacity at around 720-730 million tonnes per annum as of March 2026. Producers are expanding through both new plants and upgrades to existing facilities, seeking to strengthen regional supply and improve their reach in growing markets.

For Andhra Pradesh, the proposed plants could support the state’s efforts to build a larger industrial base and meet demand from construction activity. Their contribution will depend on project approvals, land development, construction and commissioning. With key details still awaited, the ₹7,000-crore proposal marks a significant investment intention, rather than an operational capacity addition at this stage.