Shree Cement targets to earn revenue of Rs 460 crore by selling power next year as it looks to derisk its income from the cyclical downturn of cement business. It earned Rs 60 crore from this business in the past year. It is expanding its power generation capacity to 560 mw by the next year. It will add 130 mw by the next month and another 300 mw by the end of the current fiscal. The company consumes lion’s share of its generation of 120 mw, leaving only 20-30 mw available for the grid.
Initially, the company will sell power in the open market, but will talk to many prospective clients for long-term power contracts. It is estimated that the company would be able to garner revenue of Rs 3,500 crore in 2010-11, including Rs 460 crore from the power business. Its revenue last fiscal stood at Rs 2,700 crore. Shree Cement is investing Rs 1,200 crore to scale up its power generation capacity. It is also in the process of raising its cement capacity from 9 million tonne to 12 million tonne. Shree Cement, the largest player in
