Sagar Cements: Building Bigger, Stronger with ₹500 Crore Expansion

Sagar Cements (R) Limited (SCRL), previously operating under the name BMM Cements Limited (BMM), marks a significant presence in the cement industry from its operational base in Gudipadu Village, Yadiki Mandal, Anantapur District, Andhra Pradesh. With a strategic acquisition, SCRL has taken over the operations of BMM, including all its assets, through a formal process overseen by the Registrar of Companies (ROC). This acquisition has not only expanded SCRL's operational footprint but also strengthened its market position by incorporating a wider range of cement products into its portfolio, such as Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), and Portland Slag Cement (PSC).

The manufacturing unit of SCRL is strategically positioned to leverage the limestone reserves from the Gudipadu Limestone mine, ensuring a steady supply of raw materials critical for cement production. The initial clinker production capacity stood at 0.75 Million Tonnes Per Annum (MTPA), supported by these local limestone resources, underscoring the symbiotic relationship between SCRL's operational strategies and the regional natural resources.

Embarking on an ambitious expansion plan, SCRL aims to significantly upscale its production capabilities. The proposed enhancement includes increasing the clinker production capacity from 0.75 MTPA to 3.0 MTPA and cement production from 0.95 MTPA to 4.0 MTPA. This expansion involves upgrading the existing Line-I and establishing a new Line-II for clinker and cement production, which in turn will quadruple the limestone requirement to 4.5 MTPA. Such a move is poised to position SCRL as a key player in the cement industry, catering to the growing demand for cement products.

To complement the increased production capacity, SCRL is also planning to upgrade its power infrastructure. The total power requirement is set to increase to 39 MW, necessitating the installation of a 15 MW Waste Heat Recovery Based Captive Power Plant (WHR CPP) to ensure an uninterrupted power supply for the expanded operations. This forward-thinking approach not only addresses the increased energy needs but also reflects SCRL's commitment to sustainable and efficient production practices.

The financial blueprint of this expansive endeavor outlines a total capital investment of Rs. 500 crores, with an additional Rs. 40 crores allocated for an Environmental Management Plan. This investment underscores SCRL's commitment to environmental stewardship and sustainable development, ensuring that the expanded operations will be conducted with a minimal environmental footprint. Through these strategic initiatives, SCRL is set to redefine its legacy in the cement industry, fostering growth, sustainability, and economic development in the region.

News by Rahul Yelligetti