### **Overview** Sagar Cements Limited (SCL) is a leading Indian cement manufacturer with a strong legacy spanning nearly four decades since its inception in 1985. Headquartered in South India, the company has evolved from a regional player into a geographically diversified cement producer with an integrated presence across southern, central, and eastern regions of the country. With a current total production capacity of **10.5 million tonnes per annum (MTPA)** and strategic expansion plans underway, SCL is well-positioned to capitalize on growing infrastructure and real estate demand in India. The company is listed on Indian stock exchanges and backed by significant foreign ownership, including **AvH Resources India Pvt. Ltd.** (a subsidiary of Belgian group Ackermans & Van Haaren, holding 19.64% stake) and **PI Opportunities Fund** (affiliated with Premji Invest, holding 10.10%). --- ### **Production Capacity & Manufacturing Network** As of October 2025, Sagar Cements operates across multiple modern, fully automated facilities with the following key production assets: | **Plant** | **Location** | **Capacity (MTPA)** | **Captive Power (MW)** | **Key Notes** | |--------------------------|--------------------------|----------------------|------------------------|---------------| | Mattampally | Telangana | 3.00 | 28.23 | Fully integrated; one of the largest plants; GreenCo Gold certified | | Dachepalli | Andhra Pradesh | 2.25 → 3.00 (expansion) | 31.00 | Capacity being upgraded to 3.0 MTPA; improved energy efficiency | | Gudipadu | Andhra Pradesh | 1.25 | 31.00 | Supplies core southern markets | | Jeerabad | Madhya Pradesh | 1.0 → 1.5 (expansion) | 5.30 | Expansion underway; commissioning expected by end-FY26 | | Bayyavaram | Andhra Pradesh (Vizag) | 1.50 | 8.43 (Hydro + Solar) | Grinding unit; leverages local slag supply | | Jajpur | Odisha | 1.50 | – | Grinding unit; serves eastern markets | Additionally, the company has a **clinker capacity of 6.60 MTPA**, supported by long-term limestone reserves and captive power infrastructure. > **Total Installed Cement Capacity (Aug 2025): 10.50 MTPA** > **Planned Expansion (by FY26): +0.75 MTPA → Target of 11.25 MTPA** --- ### **Strategic Expansion & Growth Initiatives** - **Capacity Expansion at Key Plants:** - **Jeerabad Plant (MP)**: Expanding from 1.0 to **1.5 MTPA** to meet rising demand in Gujarat, Maharashtra, and Western MP. Expected commissioning by **end-FY26**. - **Dachepalli Plant (AP)**: Increasing capacity from 2.25 to **3.00 MTPA** via a new preheater installation to enhance energy efficiency and output. - **Future Vision:** - Long-term goal of reaching **20 MTPA by 2035**, aligned with the company’s historical benchmark of **doubling capacity every decade**. - Strategy includes a mix of **organic growth (debottlenecking)**, **brownfield expansions**, and targeted **inorganic acquisitions**. - **Recent Acquisitions:** - **Andhra Cements Limited (ACL)**: Acquired for ~₹922 crores in FY23. Added **2.6 MTPA** capacity in Guntur and Visakhapatnam. Includes **102.98 MW** captive power (29.98 MW green energy). Planned upgrades to boost capacity to **3.0 MTPA** by H2 FY25. - **Sagar Cements (R) Limited (SCRL)**: Acquisition strengthened southern market access, reduced lead distances, and improved profitability. These acquisitions helped SCL achieve **10 MTPA capacity ahead of schedule** and position the **group capacity at 11.25 MTPA post-upgradation**, with minimal incremental leverage. --- ### **Raw Material Security & Sustainability** - **Limestone Reserves:** **941.4 million tonnes** across Mattampally, Gudipadu, Indore, and Dachepalli, ensuring long-term feedstock security (minimum 50-year reserve life standard). - **Fuel & Logistics Optimization:** Plants located within **150 km of coal mines** and about **400 km from ports**, significantly reducing fuel and freight costs. - **Packaging:** Sourcing from group-owned entities ensures cost-effective and reliable supply chain integration. - **Sustainability & Green Initiatives:** - **Captive Power Capacity:** **102.98 MW**, including solar, hydro, waste heat recovery, and thermal sources; ~30% from renewable/green energy. - **Green Projects:** Solar power installations of **6 MWh** each planned at Gudipadu and Dachepalli (approved Jun 2024). - **Green Cement Portfolio:** Offers **PPC Super**, **PSC**, **GGBS**—all certified under **GreenPro** (Gold/Platinum). - **Net Zero Roadmap:** Targeting **carbon neutrality by 2050**, with interim emissions reduction goals by 2030. --- ### **Distribution & Market Presence** - **Sales Network (Aug 2025):** - **3,173 Dealers** - **7,127 Sub-dealers** - **84 Warehouses** - **11 Regional Offices** - **Strategic Market Reach:** - **Core Markets:** Andhra Pradesh, Telangana, Tamil Nadu, Karnataka, Kerala. - **Expanding Into:** Eastern (Odisha, West Bengal) and Central India (Madhya Pradesh, Gujarat, Maharashtra). - Average **lead distance of ~250–300 km**, minimizing logistics costs and improving delivery efficiency. - **Brand & Customer Base:** - The **'Sagar Cement'** brand has strong recall, trust, and market equity built over 40 years. - Focus on customer education through a **Concrete Lab** established in 2017 to promote cost-effective, durable, and sustainable cement solutions. --- ### **Operational Excellence** - **Technology & Innovation:** - Adoption of **AI/ML-powered smart systems** for production control, quality assurance, and supply chain optimization. - Use of advanced manufacturing tech: **dry kilns, six-stage preheaters, vertical roller mills, waste heat recovery**. - Operational improvements through process upgrades, debottlenecking, and high automation. - **Debottlenecking & Process Enhancements:** - Continuous efforts to improve output and efficiency across all plants. - Upgrading older preheaters to **double-string six-stage inline calciner systems** for higher efficiency. - **Cost & Financial Discipline:** - Expansion funded with **minimal leverage**, maintaining strong financial stability. - Capital expenditures tightly controlled with cost rationalization across operations. - Emphasis on **freight cost optimization, energy efficiency, and clinker factor improvement**. --- ### **Financial & Credit Profile** - **Credit Rating:** **BBB+** by India Ratings & Research – indicating investment-grade creditworthiness. - **Profitability Drivers:** - Revenue growth fueled by **new plant ramp-ups** (Jeerabad, Jajpur). - Higher volumes in South India and expansion into high-growth potential regions with low per capita cement consumption.