Shree Cement Limited has achieved a significant milestone with the commissioning of its cement mill at the Kodla plant in Karnataka. The company announced on 14th March, 2026, that it has successfully commissioned the cement mill with a capacity of 3.50 MTPA, marking the completion of its integrated cement plant at the location.

Plant Commissioning Details

The commissioning represents the final phase of the integrated cement plant development at Village Kodla, Kalaburagi District of Karnataka. The company had previously commissioned the clinkerisation section of the plant on 24th February, 2026, which had a capacity of 3.65 MTPA.

Capacity Optimization

A notable aspect of this commissioning is the capacity enhancement achieved through operational improvements. The cement capacity has been optimized from the initially planned 3.0 MTPA to 3.50 MTPA. This increase was realized through equipment optimization and process improvements implemented during the project execution phase.

Enhanced Production Capacity

With the commissioning of this cement mill, Shree Cement's operational footprint at the Kodla location has been significantly strengthened. The completion of the integrated plant brings substantial capacity additions to the company's production portfolio.

Strategic Significance

The commissioning of this integrated cement plant represents a major expansion in Shree Cement's manufacturing capabilities in the Karnataka region. The facility combines both clinkerisation and cement milling operations, providing operational efficiency and enhanced production flexibility. The successful completion of this project demonstrates the company's commitment to expanding its presence in key markets across India.

The company has formally disclosed this development under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015, ensuring transparency with stakeholders regarding this significant operational milestone.

Shree cement Limited has disclosed receiving a significant GST demand order from tax authorities in Belagavi, Karnataka. The cement manufacturer informed stock exchanges about the regulatory action through a filing under SEBI disclosure requirements.

GST Demand Details

The Joint Commissioner, Central Tax & Central Excise, Belagavi has issued a demand order against Shree Cement for alleged tax violations. The financial implications of this order are substantial:

The order was dated February 23, 2026, and received by the company on February 24, 2026. The demand stems from allegations of wrong availment of input tax credit, a common area of GST compliance scrutiny.

Company's Response and Legal Action

Shree Cement has indicated its disagreement with the tax authorities' contentions. The company has outlined its planned legal response:

• Appeal Filing: The company will file an appeal under Section 107 of the Karnataka GST Act
• Timeline: Appeal to be filed on or before May 23, 2026 (within three months from order communication date)
• Financial Impact: Company states the order has no major financial impact on operations

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Company Secretary Shyam Sunder Khandelwal signed the regulatory filing, ensuring compliance with stock exchange notification requirements.

The company has provided detailed information about the nature of violations alleged by tax authorities, focusing on input tax credit availment practices. Such GST disputes are not uncommon in the cement industry, where complex supply chains and multiple tax jurisdictions can lead to compliance challenges.

Business Operations Continuity

Despite the significant monetary value of the demand, Shree Cement has emphasized that the order will not materially affect its financial position or operational activities. The company's confidence in challenging the order through legal channels suggests strong internal assessment of its GST compliance practices.