Standing Strong In Testing Times: How Shree Cement Yielded 64,473% Returns

Published by Trinkerr Academy on

If you had invested โ‚น1 lakh 21 years ago in Shree Cements, then you would have had โ‚น6.5 crores today! This multibagger performed exceptionally well. Let’s take a quick peek into Shree Cements and what they do.

๐Ÿ›๏ธ Stock Name: Shree Cement Ltd.


๐Ÿšง A Rocky Start

The company came into existence when the Maharaja of Jamnagar offered H.M. Bangur’s grandfather land to set up a cement business. It took years for the company to get established and in 1986, finally, the company shipped its first bag of cement. The cement industry in India back then was in a sorry state, as some manufacturers were selling inferior quality cement, which led to buildings collapsing.

๐Ÿšง Braving A Tough Road

Shree Cement had already been through a 4-year downturn by early 2002. They were hardly making any money and the markets were bad too. To compound its problems, it borrowed money at 19% interest to fund expansion. A French company, Vicat, was almost close to buying 50% of the company, but H.M. Bangur, a born fighter, refused the deal at the last moment. He noticed that Reliance had learned to refine petroleum coke from Europe and wanted to explore it.

๐Ÿšง Cementing Success

He sent six engineers & workmen to Turkey to get a fair idea of how to use petroleum coke in clinker plant furnaces. Later, the company teamed up with Christian Pfeiffer & Company Germany to install a horizontal impact crusher to pre-crush clinker, thereby upgrading the output and saving energy. They further teamed up with IKN Germany. Bangur’s grit and determination paid off and Shree Cement is now ranked among the worldโ€™s top 10 cement companies from India! Shree Cement was clearly the second-largest cement company in India by market cap in 2018 ๐Ÿ†


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