Shree Cement Limited has secured preferred bidder status for a limestone mining lease in Andhra Pradesh, marking a strategic step toward strengthening its raw material sourcing capabilities. The development coincided with a modest uptick in the company’s share price during intraday trading on March 18, 2026.
Preferred Bidder for Key Limestone Asset
The company participated in an e-auction conducted by the state government for the Dommarnandyala-1 limestone block located in the YSR Kadapa district. Following the auction process, Shree Cement has been identified as the preferred bidder for the mining lease.
The limestone block covers an area of approximately 373 hectares, providing access to a critical input used in cement manufacturing.
Strategic Significance for Operations
Securing limestone reserves is a key factor in ensuring long-term operational efficiency in the cement industry. The acquisition is expected to:
- Strengthen raw material security
- Enhance cost efficiency by reducing dependency on external sourcing
- Support long-term capacity expansion plans
Access to captive resources can play a crucial role in stabilising input costs and improving supply chain reliability.
Regulatory Disclosure
The company disclosed this development in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, which mandates timely reporting of material corporate developments.
Summary
Shree Cement has been declared the preferred bidder for a limestone block in Andhra Pradesh, strengthening its raw material security and supporting long-term operational efficiency. The development aligns with the company’s strategic focus on cost optimisation and capacity planning.
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