Bhugarbha Cement Targets NPR 1 Billion Capital with Expansion Plan and Modern Rotary Plant

Kathmandu — Nepal’s leading cement producer Bhugarbha Cement Limited is moving toward becoming a NPR 1 billion paid-up capital company, as it advances plans to install a modern rotary clinker plant and significantly expand production capacity.

The company’s Seventh Annual General Meeting (AGM), held on Poush 1, approved a proposal to issue 60 percent right shares based on the existing paid-up capital of NPR 505 million. In line with the AGM decision, Bhugarbha Cement has issued right shares to its promoter shareholders with a 35-day subscription period. Following the rights issue, the company’s paid-up capital will increase to NPR 808 million.

According to Chairman Nandikeshar Poudyal, the company plans to further issue 20 percent ordinary shares to the general public after the completion of the rights offering. “Once the public issue is completed, the company’s paid-up capital will reach close to NPR 1 billion,” he stated.

IPO Plans and Capital Expansion

Earlier, Bhugarbha Cement had applied to the Securities Board of Nepal for approval to issue an Initial Public Offering (IPO) worth NPR 126.25 million, equivalent to 1.2625 million shares. However, following the AGM’s decision to issue right shares first, the IPO process experienced a delay. The company has clarified that the IPO size will be increased after the completion of the rights issue.

The issue and sales manager for the company’s securities offerings is Nabil Investment Banking Limited.

Investment in Modern Rotary Plant

Funds raised through the rights issue will be used to establish a modern rotary clinker production plant with a capacity of 800–1,000 tons per day. Currently, Bhugarbha Cement operates with a clinker production capacity of 300 metric tons per day and a cement production capacity of 500 metric tons per day.

The company has adopted advanced dry-process technology along with environmental pollution control systems, aiming to ensure sustainable, energy-efficient, and high-quality cement production.

Strong Market Presence and Resource Base

Established in 2073 BS (2016 AD), Bhugarbha Cement was converted into a public company on Ashar 7, 2080 (June 2023). The company’s cement manufacturing plant is located in Shivaraj Municipality–06, Kapilvastu district. In addition, Bhugarbha Cement operates a limestone mine in Narpani–Rakhachikot, Arghakhanchi district, acquired through a global tender process.

The limestone mine covers approximately 8 square kilometers and contains an estimated 178.98 million metric tons of geological limestone reserves, of which 161.08 million metric tons are mineable, ensuring long-term raw material security for the company.

Bhugarbha Cement has expanded its market presence across Lumbini, Gandaki, Karnali, Sudurpaschim, and the Kathmandu Valley, where its products have gained strong acceptance. The company produces both Ordinary Portland Cement (OPC) and Portland Pozzolana Cement (PPC) using modern technology.

At present, the company’s daily cement production capacity stands at 1,500 metric tons, while clinker production remains at 300 metric tons per day.

Financial Performance and Future Outlook

Bhugarbha Cement recorded a turnover of NPR 1.6698 billion in fiscal year 2024/25 (2081/82), representing an increase of nearly 20 percent compared to the previous year. In the first nine months of 2025 alone, the company’s turnover exceeded NPR 1.135 billion, reflecting growing demand and a strengthening market position.

Looking ahead, the company plans to further increase daily production capacity, invest in technological upgrades, and enhance quality testing and assurance systems to improve customer satisfaction. Bhugarbha Cement has emphasized its commitment to environmentally friendly production, local employment generation, safe working conditions, and corporate social responsibility, positioning itself as a key player in Nepal’s sustainable industrial development.

Operating under the slogan “Strong from the Core”, Bhugarbha Cement continues to focus on quality, sustainability, and long-term growth as it moves closer to becoming a billion-rupee company.