Sagar Cements has lined up a capital investment to the tune of ₹330 crore in the current financial year, according to its Joint Managing Director, Sreekanth Reddy.
“In FY 25, the capex is roughly around ₹330 crore. Of this, ₹250 crore to ₹270 crore is allocated to Andhra Cements Plant. The remaining capex will be for a 6-megawatt solar plant at Gudipadu. The overall Capex at Jeerabad and Gudipadu is approximately ₹20 crore each. The overall FY25 capex numbers are roughly around ₹330 crore,’‘ Reddy said.
Capex planning across the Group is more about cost optimisation than looking at growth numbers. Some portions of the proposed capex are intended for modernisation and not only for not for incremental volumes, Reddy said, adding that the investments will be made mainly from a perspective of reducing the cost as part of long-term initiatives.
In capacity utilisation in FY25, Sagar Cements generated volumes of about 5.51 mn mt in line with its guidance of closing the year with volumes of 5.6 mn mt. “For FY25, we are targeting overall volumes of 6.5 mn mt,’‘ he said.
Green energy
On the energy, front Sagar is steadily moving toward the green energy path. “Our target is to have 50 per cent green power in our portfolio by 2030. We are very much in line to achieve those numbers,’‘ Reddy said,
Sagar Cements ended Q4 of FY24 on a positive note with volume growth of 19 per cent and 14 per cent for the full fiscal, “Demand from infrastructure projects and urban real estate remained consistent in the market. We expect the volume trend to sustain in coming years as we steadily ramp up the utilisation levels across all our units,’‘ Reddy said.