Shree Cement Invests ₹8,350 Cr in Karnataka for Growth & Jobs

Karnataka, one of India’s fastest-growing industrial hubs, is set to witness a massive transformation with a major investment commitment from Shree Cement Limited. In a significant move that promises to bolster the state’s infrastructure and generate employment opportunities, the leading cement manufacturer has signed a Memorandum of Understanding (MoU) with the Government of Karnataka.

At the prestigious Global Investors Meet 2025 held in Bengaluru, Karnataka Chief Minister Siddaramaiah and Shree Cement’s Managing Director Neeraj Akhoury formalized this landmark partnership. The agreement, valued at ₹8,350 crore, underscores Shree Cement’s commitment to strengthening its footprint in South India while contributing to Karnataka’s economic and industrial development.

But beyond the numbers, what does this investment really mean for Karnataka’s growth story? TICE breaks it down for you.

Massive Expansion Plans to Reshape Karnataka’s Cement Industry

Shree Cement’s planned investment will be spread across three key projects, all strategically designed to enhance Karnataka’s cement manufacturing capacity:

1. Integrated Cement Plant in Kalaburagi (₹2,500 Crore Investment)

• Clinker Capacity: 3.5 MTPA (Million Tonnes Per Annum)
• Cement Capacity: 3 MTPA
• Direct Employment Generation: Around 300 jobs
• Expected Completion: 2025

The first leg of the expansion will see a cutting-edge integrated cement manufacturing facility come up in Kalaburagi, a district already emerging as a cement production hub. With an initial investment of ₹2,500 crore, this facility will not only increase cement output but also create direct job opportunities for at least 300 people, apart from thousands of indirect employment opportunities in allied industries like logistics and construction.

2. Clinker Grinding Unit in Bengaluru Rural (₹850 Crore Investment)

• Capacity: 3 MTPA
• Direct Employment Generation: 250 jobs
• Expected Completion: 2028

As the demand for cement continues to rise due to rapid urbanization, Shree Cement has also planned a Clinker Grinding Unit in Bengaluru Rural district. This project, expected to be completed by 2028, will have a 3 MTPA capacity and will be backed by an investment of ₹850 crore. It is poised to provide 250 direct jobs and help in catering to the increasing cement demand in Bengaluru’s booming real estate and infrastructure sectors.

3. Mega Cement Plant in Kalaburagi (₹5,000 Crore Investment)

• Clinker Capacity: 3.5 MTPA
• Cement Capacity: 6 MTPA (Planned in Two Phases)
• Direct Employment Generation: 750 jobs
• Expected Completion: 2030

The third and most ambitious project involves setting up a larger integrated cement plant in Kalaburagi with an investment of ₹5,000 crore. This mega plant will be developed in two phases and will boost the region’s cement production capacity significantly, creating around 750 direct jobs and several thousand indirect employment opportunities.

A Strategic Move: Why Karnataka?

Shree Cement’s expansion into Karnataka is not just about increasing production capacity—it’s a strategic move. Karnataka has emerged as a prime destination for industries due to its robust infrastructure, skilled workforce, investor-friendly policies, and high demand for construction materials.

With major infrastructure projects underway, including the Bengaluru-Mysuru Expressway, suburban rail networks, and multiple smart city developments, the demand for cement is at an all-time high. Shree Cement’s expansion aligns perfectly with the state’s industrial and infrastructure growth trajectory.

What This Means for Karnataka’s Economy

Shree Cement’s ₹8,350 crore investment is expected to have far-reaching economic implications for Karnataka:

• Job Creation: Over 1,300 direct jobs and thousands of indirect jobs in logistics, raw material supply chains, and construction.
• Boost to Local Economy: Increased industrial activity will spur demand for transportation, housing, and small businesses in surrounding areas.
• Sustainable Development: Shree Cement is known for its eco-friendly cement production, ensuring sustainable industrial growth in the state.
• Improved Cement Supply: With enhanced production capacity, Karnataka can expect stabilized cement prices and better supply for construction projects.

Government’s Support: Easing the Path for Execution

The Government of Karnataka has extended full support to ensure the smooth execution of these projects. The state has committed to facilitating:

• Necessary permissions and clearances
• Infrastructure support for plant operations
• Incentives for industrial investments

The pro-business policies and ease of doing business reforms in Karnataka have played a crucial role in attracting such large-scale investments.

Shree Cement’s Long-Term Vision

As one of India’s leading cement manufacturers, Shree Cement Limited has built a reputation for quality, sustainability, and innovation. The company, which has operations across India and the UAE, is on a mission to exceed 80 MTPA production capacity in the coming years.

With an emphasis on cutting-edge technology, green initiatives, and energy-efficient manufacturing, Shree Cement aims to be a pioneer in sustainable building materials. The new investments in Karnataka are a testament to this vision.

A Win-Win for Karnataka & Shree Cement

This massive investment is not just about cement production—it’s about economic growth, industrial development, and job creation. Shree Cement’s strategic expansion in Karnataka will help meet the state’s rising demand for construction materials, support infrastructure projects, and contribute to India’s overall industrial growth.

With Karnataka emerging as a top destination for industrial investments, this deal marks a turning point for the state’s economic landscape. The ₹8,350 crore MoU signals a future where industry and infrastructure go hand in hand, paving the way for sustainable and inclusive growth.

Shree Cement’s bold move is a step towards a stronger, more industrialized Karnataka, and all eyes will be on how these projects unfold in the coming years.

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