Sagar cements Limited has executed a corporate guarantee agreement worth ₹74.00 crores in favour of Axis Finance Limited to support its subsidiary's expansion plans. The agreement was signed on 24th January, 2026, as disclosed under regulatory compliance requirements.

Corporate Guarantee Details

The corporate guarantee has been provided to facilitate a term loan facility for Sagar Cements (M) Private Limited, a subsidiary of the company. The funds are designated for the subsidiary's ongoing project expansion activities.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of SEBI (LODR) Regulations, 2015, specifically under Para B(11) of Part A of Schedule III. This regulation mandates listed companies to inform stock exchanges about material events and corporate developments that could impact investor decisions.

The company has notified both the National Stock Exchange of India Limited and BSE Limited about this corporate guarantee arrangement, ensuring transparency in its financial commitments.

Strategic Implications

This corporate guarantee demonstrates Sagar Cements Limited's commitment to supporting its subsidiary's growth initiatives. By providing financial backing for the term loan facility, the parent company is enabling Sagar Cements (M) Private Limited to proceed with its project expansion plans.

The guarantee arrangement allows the subsidiary to access necessary funding while leveraging the parent company's financial standing and creditworthiness with Axis Finance Limited.

Sagar Cements has announced significant cost reduction initiatives aimed at enhancing operational efficiency across its manufacturing facilities. The strategic measures, outlined during the company's recent conference call, focus on implementing advanced technology solutions to optimize production costs and improve overall profitability.

Waste Heat Recovery System at Gudipadu

The company plans to install a 4.35 MW Waste Heat Recovery System (WHRS) at its Gudipadu facility as part of its energy efficiency drive. This initiative represents a substantial investment in sustainable manufacturing practices while delivering tangible cost benefits.

The WHRS technology will capture and utilize waste heat generated during the cement manufacturing process, converting it into usable energy and reducing the facility's overall power consumption requirements.

Grinding Mill Enhancement at Jeerabad

Sagar Cements is also implementing a grinding mill project at its Jeerabad facility, which is expected to deliver more substantial cost savings compared to the WHRS initiative. This project focuses on improving the grinding efficiency and reducing operational costs through advanced milling technology.

Combined Cost Reduction Impact

The dual initiatives represent a comprehensive approach to cost optimization across Sagar Cements' operational network. The combined impact of both projects is expected to generate significant per-ton savings for the company.

These cost reduction measures demonstrate the company's commitment to operational excellence and sustainable manufacturing practices. The implementation timeline extends to early FY27, indicating a phased approach to achieving these efficiency gains across the organization's cement manufacturing operations.