Shree Cement announced that its Board of Directors has approved the establishment of a new integrated cement plant in Meghalaya, marking a significant expansion in the northeastern region. The board approval was granted on 4th April, 2026, for this major infrastructure project.

Project Details and Specifications

The new facility will be strategically located at Village Daistong in East Jaintia Hills District, Meghalaya. The integrated cement plant will feature substantial production capabilities designed to serve the growing demand in the region.

Investment and Financing Structure

The project requires an estimated investment of Rs 1800 crores, representing a substantial commitment to expanding manufacturing capabilities. The company plans to finance this expansion through a combination of internal accruals and debt, demonstrating a balanced approach to funding the growth initiative.

Implementation Timeline

Shree Cement has set an ambitious timeline for the project completion, targeting the quarter ending March 2028 for the proposed capacity addition. This timeline indicates the company's commitment to bringing the facility online within approximately two years from the board approval date.

Strategic Rationale

The board has identified business expansion as the primary rationale for this investment. The establishment of this integrated cement plant in Meghalaya represents the company's first facility in the state, as the existing capacity at this location is currently nil. This greenfield project will enable Shree Cement to establish a manufacturing presence in the northeastern region and capitalize on regional market opportunities.

Regulatory Compliance

The announcement was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency with stakeholders and regulatory authorities. The disclosure follows the requirements outlined in the SEBI Master Circular dated 30th January, 2026.

Shree Cement Limited has disclosed receiving a draft assessment order from the Income Tax Authority for FY 2022-23, which could result in a potential tax demand of approximately ₹149.00 crores. The cement manufacturer made this disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, while indicating that no major impact is expected on its operations.

Draft Assessment Order Details

The company received the draft assessment order under section 144C(1) of the Income Tax Act, 1961 on March 31, 2026, from the Assistant Commissioner of Income Tax, Central Circle, Ajmer. The order pertains to FY 2022-23 and proposes disallowances and additions to the returned income as filed in the income tax return.

Financial Implications and Impact Assessment

The draft assessment order indicates a likely demand of approximately ₹149.00 crores, excluding any interest that may be applicable. However, the company has clarified that this potential demand would be adjusted against pending refunds that are due to the company. The actual demand will only be determined upon receipt of the final order.

Company's Response Strategy

Shree Cement, in consultation with its legal counsel, believes there will be no major impact on the company's financial, operational, or other activities due to this draft assessment order. The company maintains that the disallowances made in the draft order are not sustainable before the appellate authorities.

The company plans to take the following strategic actions:

• File objections against the draft assessment order
• Choose between filing objections to the Dispute Resolution Panel or appealing before the Commissioner of Appeals
• Leverage pending refunds to offset potential demand

Regulatory Compliance and Disclosure

The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Company Secretary S.S. Khandelwal has declared that the information provided is true, correct, and complete to the best of his knowledge and belief. The company has confirmed that no penalties, restrictions, or sanctions have been imposed pursuant to this communication, and no aberrations or non-compliances have been identified by the authority.