Andhra Cements Begins Commercial Operations at Expanded Durga Cement Works

Andhra Cements has started commercial operations at its expanded Durga Cement Works in Palnadu, Andhra Pradesh, marking the completion of a major phase of the company’s modernization programme.

The cement maker has increased the plant’s grinding capacity to 3.00 Million Tonnes Per Annum (MTPA), up from 1.82 MTPA previously. The expansion is expected to support higher production volumes and improve the plant’s ability to serve cement demand across Andhra Pradesh and neighbouring southern markets.

The latest development follows the commissioning of a clinker preheater at the facility in October 2025. With the upgrade, clinker manufacturing capacity at Durga Cement Works has increased to 2.30 MTPA from 1.65 MTPA.

The completion of the grinding mill expansion brings the major modernization work at the Palnadu facility to its commercial operating stage. The expanded grinding capacity is also expected to improve the integration between clinker production and cement grinding at the plant.

Andhra Cements, which was acquired by Sagar Cements through the insolvency resolution process in 2023, has been working to revive and modernise its assets. The latest capacity addition forms part of that broader effort to strengthen the company’s operating base.

The company reported a net loss of ₹35.93 crore on revenue from operations of ₹142.17 crore in the first quarter of the 2026–27 financial year, according to SAHI Markets. The ramp-up of the expanded capacity will therefore be closely watched as the company moves towards higher production and utilisation levels.

The development also comes as Andhra Cements prepares for a proposed merger with its parent company, Sagar Cements. In June 2026, the board of Andhra Cements approved a Scheme of Amalgamation involving the two companies.

For the southern cement market, the additional capacity comes at a time when manufacturers are expanding production and competition remains high. Andhra Cements’ expanded facility could allow the company to increase its presence in regional markets as production from the modernised plant ramps up.

The Durga Cement Works expansion, therefore, represents an important operational milestone for Andhra Cements, with the focus now shifting from project completion to capacity utilisation, production growth and commercial performance.