Promoted by S N Kilaru, Hemadri Cements (HCL), a mini-cement plant (cap. : 200 tpd), was set up at Vedari, Andhra Pradesh. It started commercial production in Mar.'85 and within three years increased its capacity to 300 tpd and further to 550 tpd in 1992 using DDF Technology from Nihon Cement Company, Japan. Due to the downward trend and sluggish cement prices, the company accumulated a book loss of Rs 4.65 cr as on 31 Mar.'94 comprising depreciation only. But as cement prices started rising, the company began earning profit from Apr.'94. In Mar.'95, it offered equity shares on a rights basis to expand its capacity from 99,000 tpa to 1,98,000 tpa, at the lowest capital investment per tonne of installed capacity. The company has also implemented an energy conservation scheme which will substantially reduce the cost of production.
During the year 1997-98, the company became a sick company due to the erosion of its entire networth, accordingly it has been referred to the BIFR.
Also during the year 1999-2000, the company incurred a net loss of Rs.787.73 as against a net loss of Rs.503.26 lakhs in the previous year.