Developing integrated capacity

The Board of Shiva Cement has approved the setting up of a cement grinding unit with capacity of 1.0 MMTPA by Bhushan Power & Steel Limited ("BPSL") located within BPSL's premises at Sambalpur, Odisha for and on behalf of Shiva Cement. BPSL is a steel manufacturer and is a related party of Shiva Cement.

Shiva Cement has the right to subsequently acquire this grinding unit from BPSL (including the right to use the relevant portions of the underlying land parcel on which the grinding unit is being set up), for an aggregate purchase consideration of up to INR 380 crores ("Proposed Transaction"). The Proposed Transaction will be beneficial for Shiva Cement as it aligns with the long-term objective of the Company to sell the finished product i.e. cement. Shiva Cement will supply its own clinker to this cement grinding unit.

BPSL is responsible for obtaining land related and other regulatory approvals for the cement grinding unit. Until all requisite approvals are obtained, BPSL shall operate the completed grinding unit exclusively for the benefit of Shiva Cement.

The Proposed Transaction will be beneficial for Shiva Cement as it aligns with the long-term objective of the Company to sell the finished product i.e. cement. Shiva Cement will supply its own clinker to this cement grinding unit, leading to increased kiln utilisation.