Sagar Cements has outlined significant expansion plans for its cement manufacturing facilities, whereby in FY26 and FY27, the Jeerabad and Gudipadu plants will increase their cement production capacities by 0.50 million tonne (MT) and 0.25 MT, respectively.
The expansion at Jeerabad will involve a Rs 120 crore capex, to be funded partly by debt and internal accruals. The construction of a 6-stage preheater at the Dachepalli Plant of Andhra Cements has been successfully completed. After conducting trial runs, it was officially commissioned on 23 October, 2025. A six MW solar power plant was installed at Dachepalli. The Dachepalli plant has successfully completed a clinker capacity expansion, reaching 2.31 MnT, with cement capacity increasing to 3.00 MnT.
The proposed capital expenditure for the expansion is Rs 470 crore, with the breakdown as: Rs 75 crore spent in FY25, Rs 150 crore spent in H1 FY26, a budget of Rs 145 crore for H2 FY26, and the remaining amount to be spent in FY27. The company also plans to further ramp up green energy sources, including WHR and solar projects, with installations at multiple plants by FY29. Key projects include WHR at Gudipadu and solar plants at Mattampally and Jeerabad, aiming to reduce the environmental footprint while ensuring energy sustainability.