Shree Cement Limited has signed a Memorandum of Understanding (MoU) worth ₹8,350 crore with the Government of Karnataka, marking a significant commitment to industrial growth and employment generation in the state. The investment, planned over the next five years, aims to establish state-of-the-art cement manufacturing facilities that will bolster Karnataka’s industrial landscape.
The MoU was formalized during the Global Investors Meet 2025 in Bengaluru, in the presence of Karnataka Chief Minister Siddaramaiah and Shree Cement’s Managing Director, Neeraj Akhoury. This strategic agreement highlights Karnataka’s appeal as an investment destination and represents a crucial step in enhancing the state’s cement manufacturing capacity.
As part of this investment, Shree Cement will develop an Integrated Cement Plant in Kalaburagi with a clinker capacity of 3.5 million tonnes per annum (MTPA) and a cement capacity of 3 MTPA. With an investment of ₹2,500 crore, the plant is expected to generate approximately 300 direct employment opportunities and is scheduled to commence operations by 2025. Additionally, a Clinker Grinding Unit with a capacity of 3 MTPA will be established in Bengaluru Rural district, requiring an investment of ₹850 crore. This unit is anticipated to create 250 direct job opportunities and is projected to be operational by 2028.
Further, as part of the MoU, Shree Cement plans to set up another Integrated Cement Plant in Kalaburagi district, featuring a clinker capacity of 3.5 MTPA and a cement capacity of 6 MTPA, to be developed in two phases. This major project entails an investment of ₹5,000 crore and is expected to create 750 direct jobs. The plant is slated for completion by 2030, reinforcing the company’s commitment to sustainable growth and operational excellence.
Neeraj Akhoury, Managing Director of Shree Cement Limited, expressed confidence in the partnership, stating that Karnataka is a key state for the company, and the investment reflects its dedication to contributing to the region’s economic progress. He also extended gratitude to the Government of Karnataka for its support and commitment to ensuring a smooth execution of these projects.
The projects will not only strengthen Shree Cement’s footprint in South India but also support Karnataka’s vision of becoming a hub for industrial and infrastructural growth. The state government has assured full assistance in facilitating the necessary permissions, registrations, approvals, and clearances required for the timely execution of these projects.
Shree Cement remains steadfast in its commitment to sustainable development and plans to integrate advanced technologies to ensure environmentally friendly operations. This investment marks a transformative move in Karnataka’s industrial sector and further establishes Shree Cement as a key player in the country’s cement manufacturing industry.
