Shree Digvijay Cement Company held a strategic business update conference call on March 25, 2026, announcing its integration with Hi-Bond Cement through a comprehensive Brand Usage, Supply and Distribution Agreement (BDA). The agreement, effective from March 19, 2026, marks a significant milestone in the company's expansion strategy and market consolidation efforts in Gujarat's cement sector.

Strategic Integration Structure

The BDA provides Shree Digvijay Cement with exclusive brand usage and distribution rights for Hi-Bond Cement, along with call and put options for future acquisition. Under this arrangement, Shree Digvijay will purchase cement from Hi-Bond at cost plus a fixed margin of INR500 per metric ton and sell at prevailing market prices.

The combined operation creates a total installed capacity of 5.2 million tons, positioning the integrated entity as the third largest cement operation in Gujarat after UltraTech and Adani.

Market Position and Capacity Details

The integration brings together two established players in Gujarat's cement market. Shree Digvijay Cement has operated for eight decades while Hi-Bond Cement has been active for three decades, both companies well-recognized in the Gujarat market.

The combined entities currently serve approximately 9% to 10% of Gujarat's total cement market and command 16% to 17% market share in the Saurashtra region, which represents the primary market for both companies.

Financial Structure and Debt Position

To facilitate the Hi-Bond transaction, Shree Digvijay Cement secured additional financing of INR356 crores. Combined with the existing rupee term loan of INR132 crores taken for grinding unit expansion, the company expects total debt of approximately INR485 crores by March 31, 2026.

Operational Advantages and Market Outlook

Management highlighted several strategic benefits from the integration, including locational advantages with both facilities positioned close to key markets, enabling efficient distribution. The companies expect to leverage economies of scale for cost reduction in production and procurement, while market allocation strategies will help optimize freight costs.

The cement market in Gujarat shows positive growth trajectory, expanding 6% to 7% year-on-year. Government focus on public infrastructure development and the approval of Commonwealth Games 2030 in Ahmedabad as host city are expected to drive additional cement demand through investments in stadiums, transport, and hospitality sectors.

Production Strategy and Resource Management

Shree Digvijay Cement maintains limestone reserves of 25 million tons and operates a captive jetty capable of handling 2 million to 2.5 million tons of cargo annually. The company imports clinker and coal through this facility to supplement production requirements.

For additional volume requirements beyond current clinker capacity, the company plans to focus on blended cement portfolio including PPC, composite, and slag cement, which require lower clinker factors of approximately 55%. This strategy helps optimize raw material utilization while maintaining profitability.

Future Growth Projections

Management expects to achieve 70% capacity utilization by FY27, targeting combined sales volume of 3 million to 3.5 million tons. The company anticipates growth rates of 150% to 200% above industry averages, supported by strong regional demand and infrastructure development projects.

Gujarata's cement market, with monthly demand of 27 lakh tons and total market size of 32 million tons annually, provides substantial growth opportunities. The company expects market demand to increase 8% to 10% driven by ongoing infrastructure projects in Rajkot, Surendranagar, Junagadh, and Jamnagar regions.

Shree Digvijay Cement Company Limited has successfully completed its conference call with investors and analysts on March 25, 2026, to discuss business outlook and recent integration developments. The company has now made the audio recording available on its website, fulfilling its commitment to provide broader accessibility to stakeholders.

Conference Call Completion

The management team conducted the scheduled conference call on March 25, 2026 at 9:00 AM IST, hosted by Equirus Securities. Following the session, the company has released an official announcement under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, confirming the availability of the audio recording.

Business Integration Progress

The conference call addressed the company's significant operational milestones in its cement distribution business. Under the Brand Usage, Supply and Distributorship Agreement (BDA) executed on September 4, 2026 with Hi-Bond Cement (India) Private Limited (HIBOND), the company has made substantial progress in its strategic partnership.

The company has paid a refundable security deposit of INR 400.00 crores to HIBOND and has effectively commenced purchase and distribution of cement manufactured by HIBOND from March 19, 2026.

Regulatory Compliance

The announcement was made pursuant to Regulation 46 and 30 read with Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The communication was signed by Suresh Meher, Sr. VP (Legal) & Company Secretary, and submitted to both BSE Limited and National Stock Exchange of India Limited.

The audio recording provides investors and analysts with comprehensive insights into the company's strategic direction and operational integration with HIBOND's cement manufacturing capabilities, ensuring transparency and broader stakeholder engagement.