Sagar Cements Announces Rs 470 Crore Expansion in Andhra Pradesh, Strengthens Green Energy Initiatives

Sagar Cements has announced a major expansion plan in Andhra Pradesh, signaling its commitment to boosting production capacity while embracing sustainable energy solutions. The company plans to invest Rs 470 crore across its Jeerabad, Gudipadu, and Dachepalli plants over FY25 to FY27. This move is expected to enhance overall cement production by 0.75 million tonnes, positioning Sagar Cements for stronger growth in the competitive cement sector.

At the heart of this expansion is the Jeerabad plant, which will see a capacity increase of 0.50 million tonnes, supported by a Rs 120 crore capital expenditure funded through a mix of debt and internal accruals. The Gudipadu plant will add 0.25 million tonnes of capacity, reinforcing the company’s presence in key regions of Andhra Pradesh.

The Dachepalli plant has already achieved significant milestones with the successful construction and commissioning of a 6-stage preheater, completed on October 23, 2025, after trial runs. A 6 MW solar power plant has also been installed at Dachepalli, strengthening the plant’s energy sustainability profile. With the clinker capacity now at 2.31 million tonnes and cement capacity reaching 3.00 million tonnes, Dachepalli is set to play a pivotal role in meeting future demand.

Sagar Cements is also prioritizing green energy initiatives across its plants. Waste Heat Recovery (WHR) projects at Gudipadu and solar energy installations at Mattampally and Jeerabad are planned by FY29. These projects aim to reduce the company’s environmental footprint while supporting efficient, sustainable operations.

The phased capital expenditure is carefully planned: Rs 75 crore was invested in FY25, Rs 150 crore in H1 FY26, Rs 145 crore is allocated for H2 FY26, with the remaining funds scheduled for FY27.

Through these expansions and renewable energy initiatives, Sagar Cements is not only enhancing production capabilities but also demonstrating a clear commitment to sustainable industrial growth in Andhra Pradesh. The company’s strategic investments are expected to strengthen its market position while contributing positively to the environment.