Shree Cement will expand its global footprint by establishing a new wholly owned subsidiary in China. The move, approved by its UAE-based intermediary, aims to streamline import and export operations for industrial machinery and equipment.

The Board of Directors of Shree Global FZE, a wholly owned subsidiary of the cement major, approved the incorporation of the new entity on October 14, 2026. The proposed company, named Shree International Trading (Shanghai) Limited, is currently under incorporation in the People's Republic of China.

Strategic Focus on Industrial Trade

The new entity will operate in the sector of import, export, and trading of goods. Its primary objective is to engage in business related to machinery, equipment, industrial products, environmental protection equipment, and other allied products and services. This structure allows the group to manage cross-border supply chain logistics more effectively through a dedicated trading vehicle.

Ownership and Capital Structure

Shree Cement Limited will indirectly hold 100% equity share capital of the proposed company through its holding relationship with Shree Global FZE. The subscription to the initial paid-up share capital will be made entirely in cash. No governmental or regulatory approvals are required for this specific incorporation step, facilitating a straightforward setup process.

What the Numbers Show

The authorized capital of RMB 5,000,000 indicates a lean initial setup typical for trading entities where working capital needs are driven by transaction volume rather than heavy fixed assets. By routing this investment through Shree Global FZE in the UAE, Shree Cement leverages an existing international corporate structure, potentially optimizing tax efficiency and regulatory compliance for its expanding Asian trade corridor.

Shree Cement has received a request from Riya Puja Jain to reclassify her shareholding from the "Promoter Group" to the "Public" category. The request was submitted on October 8, 2026, invoking Regulation 31A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Jain currently holds 2,050 equity shares, representing 0.0057% of the company's total paid-up capital. She stated that her classification as a member of the Promoter Group is solely due to her relationship with the promoters. She asserted that she does not exercise any control, directly or indirectly, over the affairs of the company and leads an independent life.

Regulatory Undertakings

In her letter to the Board of Directors, Jain provided several undertakings to support her application for reclassification. She confirmed that she does not hold more than 10% of the paid-up equity share capital and is not involved in the management or affairs of the company.

Key declarations include:

• She does not have any special rights through formal or informal arrangements or shareholder agreements.
• She is not represented on the board of directors and does not have a nominee director.
• She does not act as Key Managerial Personnel (KMP) of the company.
• She is not a wilful defaulter as per Reserve Bank of India guidelines or a fugitive economic offender.

Furthermore, Jain undertook to comply with specific conditions outlined in Regulation 31A(3) of the SEBI LODR Regulations. This includes adhering to conditions regarding control and special rights for a period of not less than three years from the date of reclassification. Failure to comply with these conditions would result in her reclassification as a promoter.

Shareholding Details

The following table outlines the shareholding position of the applicant at the time of the request:

Next Steps

The Board of Directors will consider this request in an ensuing meeting. The process may involve seeking approval from stock exchanges and shareholders, as required under applicable laws. The company has enclosed the request letter for record purposes.