At the Global Investors Meet 2025, the Government of Karnataka signed a milestone MoU with Shree Cement, unlocking large-scale industrial expansion, sustainable cement manufacturing, and thousands of new jobs.
Karnataka has taken a significant step toward becoming a major industrial powerhouse with a ₹8,350 crore investment agreement signed at the Global Investors Meet 2025. The Government of Karnataka formalized this landmark Memorandum of Understanding (MoU) with Shree Cement Limited, setting the stage for large-scale infrastructure expansion, industrial growth, and employment generation across the state.
The MoU was signed between Shri Siddaramaiah, Hon’ble Chief Minister of Karnataka, and Shri Neeraj Akhoury, Managing Director of Shree Cement Limited. This investment will fund multiple state-of-the-art cement manufacturing facilities, reinforcing Karnataka’s status as a preferred destination for industrial investment in India.
According to Shri Neeraj Akhoury, Karnataka is a key state for us, and this ₹8,350 crore investment reflects our long-term commitment to contributing to its economic progress. We are grateful for the Government of Karnataka’s support and look forward to building a sustainable and impactful presence in the region.
Strategic Investments Under the MoU
The MoU outlines Shree Cement’s commitment to expanding cement production capacity in Karnataka, creating a robust supply chain that will boost the state’s construction, real estate, and infrastructure sectors.
As part of this massive industrial expansion, Shree Cement will develop:
An Integrated Cement Plant in Kalaburagi, featuring a clinker capacity of 3.5 million tonnes per annum (MTPA) and cement production capacity of 3 MTPA. This facility, with an investment of ₹2,500 crore, is expected to create 300 direct jobs and will be operational by 2025.
A Clinker Grinding Unit in Bengaluru Rural district, with a capacity of 3 MTPA and an estimated investment of ₹850 crore. This unit will generate approximately 250 direct jobs and is scheduled to begin operations in 2028.
A second Integrated Cement Plant in Kalaburagi, developed in two phases, with a clinker capacity of 3.5 MTPA and cement capacity of 6 MTPA. This project entails a ₹5,000 crore investment, creating 750 direct jobs, and is slated for completion by 2030.
Economic & Employment Impact on Karnataka
The ₹8,350 crore investment aligns with Karnataka’s vision to become a key industrial and manufacturing hub. The expansion of cement manufacturing capacity will enhance the supply of high-quality building materials, supporting India’s infrastructure and urban development goals.
According to government reports, Karnataka’s Gross State Domestic Product (GSDP) has shown consistent growth, with the manufacturing sector contributing significantly. The Industrial Policy of Karnataka 2020-25 aims to attract ₹5 lakh crore worth of investments and generate over 2 million jobs. The Shree Cement MoU contributes to this vision, creating thousands of direct and indirect employment opportunities.
Government officials have assured fast-track approvals and clearances to facilitate the seamless execution of the projects. The investment is expected to stimulate local economies, boost demand for raw materials, and strengthen Karnataka’s logistics and transportation sector.
Shree Cement’s Commitment to Sustainable Manufacturing
As one of India’s largest cement manufacturers, Shree Cement is known for its environmentally responsible production methods. The company has made significant strides in reducing carbon emissions, optimizing energy use, and adopting cutting-edge manufacturing technologies.
The upcoming facilities in Karnataka will incorporate alternative fuel usage, energy-efficient kiln technology, and advanced emissions control systems. Shree Cement has already established one of the lowest carbon footprints in the cement industry, making sustainability a core focus of its expansion plans.
Shree Cement is also aligned with India’s commitment to reducing industrial carbon emissions under the United Nations Sustainable Development Goals (SDGs). Its new projects in Karnataka will adhere to the highest environmental, social, and governance (ESG) standards, ensuring responsible industrial growth.
The Government of Karnataka’s Support for Industrial Growth
Karnataka has emerged as a top destination for industrial investments, backed by progressive policies, robust infrastructure, and investor-friendly regulations. The Government of Karnataka has actively encouraged large-scale investments through:
- The Karnataka Industrial Policy 2020-25, which offers incentives for new manufacturing projects.
- Single Window Clearance mechanisms, streamlining project approvals.
- Infrastructure development initiatives, enhancing connectivity and logistics.
