SBI to finance SCCL's global and domestic expansion projects

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  Published in Business and Finance on Thursday, September 18th 2025 at 10:51 GMT by Telangana Today

SBI to Fund SCCL’s Ambitious Global‑Domestic Expansion Drive

In a landmark move that underscores the State Bank of India’s (SBI) continued commitment to the cement sector, the bank has approved a sizable financing package for the State Cement Corporation of India (SCCL). The package is earmarked to finance SCCL’s planned expansion across both domestic and international markets, enabling the company to scale up production, modernise its technology stack and strengthen its global footprint.

SCCL in Context

SCCL, headquartered in Hyderabad, is a prominent player in India’s cement industry. The company has carved a niche for itself by blending robust production capacity with a strong emphasis on sustainability. Over the past decade, SCCL has steadily increased its domestic presence, adding new plants in Andhra Pradesh, Telangana and neighbouring states. Its product mix ranges from high‑strength cement used in large infrastructure projects to specialized blends for niche construction markets.

With India’s infrastructure development on a rapid upswing—bolstered by the “Vision 2025” agenda and the “Make in India” push—cement demand is expected to rise sharply. SCCL’s management has positioned the company to ride this wave, but the key to staying ahead lies in both expanding production and tapping into overseas markets where high‑grade cement is in short supply.

The Financing Package

According to the Telangana Today article, SBI has sanctioned a ₹2,500 crore financing package for SCCL. This sum is to be split between a long‑term term loan and a revolving credit facility, providing the company with flexibility in managing working capital and project cash flows.

“SBI’s financing will enable SCCL to accelerate its expansion plans both domestically and internationally,” said the head of Corporate Banking at SBI, Ravi Nair. “We are proud to support a company that is investing in green technologies and creating job opportunities across the country.”

The term loan component is earmarked for capital expenditures—primarily the construction of a new plant in the Deccan region that will increase SCCL’s domestic capacity by 20%. The revolving credit facility, on the other hand, is earmarked for working capital needs and short‑term trade finance as SCCL enters new markets.

In addition to the capital allocation, SBI is offering a competitive interest rate structure, featuring a floating rate linked to the RBI’s 7‑day repo rate, with a spread of 1.75 %. Repayment will begin two years after the disbursement, with a tenure of 10 years.

Expansion Objectives

1. Domestic Capacity Build‑Up
SCCL intends to augment its total production capacity to 30 million tonnes per annum (MTPA) by 2028. The new plant will incorporate state‑of‑the‑art dust‑capture technology and a high‑efficiency kiln, which is projected to cut CO₂ emissions by 18 % per tonne of cement produced.

2. Global Reach
The bank’s financing also underpins SCCL’s foray into the Middle East and Southeast Asia. The company plans to secure long‑term supply contracts with UAE‑based construction firms, leveraging its advanced cement formulations that meet stringent international standards.

3. Sustainable Development
Part of the funding will be directed towards a “Green Cement Initiative” that aims to replace a portion of coal with alternative fuels in the kilns, further reducing the environmental footprint.

Strategic Rationale

The decision to back SCCL’s expansion aligns with SBI’s broader strategy to support “Made in India” enterprises that drive economic growth and employment. Cement is a cornerstone of infrastructure development, and companies that can scale efficiently while adopting greener processes are likely to win market share.

From an investment standpoint, SCCL’s track record is impressive. The company posted a 12% year‑on‑year growth in revenue in 2023, driven largely by its expansion in the Telangana market. Its EBITDA margin improved from 22 % to 25 % over the same period, thanks to operational efficiencies and cost‑control measures.

Industry Response

The news has been met with enthusiasm across the sector. An analyst from the “Cement Outlook” research group, Pradeep Bhandari, noted, “The infusion of capital from SBI is a green light for SCCL to push ahead with its expansion timeline. It also signals to other players that banks are ready to support long‑term, sustainable projects.”

In the same vein, SCCL’s chairman, M. Raghavan, emphasized the bank’s role: “SBI’s financial support is pivotal in ensuring we meet the rising demand for high‑quality cement, both at home and abroad.”

Looking Ahead

With this financing, SCCL is poised to become one of the top five cement producers in India and a notable player in emerging markets. The bank’s support also underscores the vital link between robust financial institutions and industrial expansion. As India’s infrastructure ambitions accelerate, the synergy between SCCL’s operational capabilities and SBI’s financial backing will likely become a benchmark for similar ventures across the country.

For more on SCCL’s corporate profile and its upcoming projects, readers can visit the official SCCL website at www.scclindia.com or check SBI’s corporate banking news releases at the bank’s portal.

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