Shiva Cement Limited (SCL) has announced that its Board of Directors, following the Audit Committee’s recommendations, has approved a significant business development plan.

This plan involves the establishment of a new cement grinding unit with a capacity of 1.0 million tons per annum (MTPA) at Bhushan Power and Steel Limited’s (BPSL) premises located in Sambalpur, Odisha.

The decision, made during the Board’s meeting on July 25, 2024, is contingent upon several conditions, including shareholder approval, necessary consents, and regulatory permissions.

The transaction entails SCL setting up this new unit with BPSL’s assistance, with an option for SCL to eventually acquire the unit along with the rights to utilise the relevant portions of the land where the unit will be constructed. The total consideration for this acquisition is capped at Rs 380 crore. This amount may include advance payments to BPSL to facilitate the establishment of the unit.

BPSL, primarily engaged in the steel industry, will oversee the construction of the grinding unit, which will then be transferred to SCL. The move is part of SCL’s strategic plan to enhance its production capabilities and align with its long-term growth objectives.