Maintaining a positive outlook for the cement sector and potential for the growth in the cement industry given the government focus on infrastructure and housing, he said, of the 440 mtpa of cement production capacity in the country, South India accounts for about 160 mtpa. While North has 93 mt, West 59 mt, Central India 93 mt and East India accounts for 73 mt. Mr. Moorthy said that the demand continues to go up across all States in the South over the past seven years barring Tamil Nadu, where it has been stagnant. Mentioning about the cement demand supply situation, he said that the sector continues to grow at over 6-8 per cent but Ramco Cements Ltd bucks that trend to grow at a much higher rate which is why the company has been investing in new capacity expansion, he said.
Various facilities of Ramco Cements Ltd at present are -
Integrated Cement Plants
Ramasamy Raja Nagar, Virudhunagar District, Tamil Nadu
Alathiyur, Ariyalur District, Tamil Nadu
Ariyalur, Govindapuram, Ariyalur District, Tamil Nadu
Jayanthipuram,Krishna District, Andhra Pradesh
Mathodu, Chitradurga District, Karnataka
Uthiramerur, Kanchipuram District, Tamil Nadu
Valapady, Salem District, Tamil Nadu
Kolaghat, Purba Medinipur District, West Bengal
Vizag, Visakhapatnam , Andhra Pradesh
Nagercoil Packing Unit, Kumarapuram, Aralvaimozhi, Kanyakumari District, Tamil Nadu
State-of-the-Art Research Centre
Ramco Research Development Centre (RRDC), Chennai
The Ramco Cements Limited is the flagship company of the Chennai-based Ramco Group, a well-known business group of South India. The main product of the company is Portland cement, manufactured in eight state-of-the art production facilities that include Integrated Cement plants and Grinding units with a current total production capacity of 16.45 MTPA (out of which Satellite Grinding unit’s capacity alone is 4 MTPA). The company is the fifth largest cement producer in the country.
Ramco Cements Current Expansion Projects
He said Ramco Cements is investing ₹2,500 crore in grinding capacity in AP and the total capex including other projects would be around ₹3,430 crore. The various expansion projects include that at the Kurnool plant, a grinding unit in Visakhapatnam, greenfield plant in Odisha, commissioning and expansion plant in Kolaghat, West Bengal. Interacting after the launch of Ramco Supercrete Cement in Andhra Pradesh and Telangana, the Moorthy said that the input costs for making cement have gone up and there is likelihood of prices firming up in the near term. However, he made it clear that it was not possible to say with certainty when this hike could happen.
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Among top two leading south Indian cement manufacturers, Ramco Cements Ltd, which is deploying a capital expenditure of over ₹3,430 crore, expects its revenues to shoot up from ₹5,250 crore to over ₹7,500 by 2021-2022.
Speaking on the expansion plan of Ramco Cements Executive Director (Marketing) of the company, Balaji K Moorthy, in the last week said “We are functioning at about 90 per cent capacity utilization and are in the process of commissioning several projects which will take the total capacity up from 12.5 MT to 20 MT. This includes a 3.15 mt greenfield cement plant in Kalavatla in Kurnool district with an investment of ₹1,500 crore.” Ramco Cements Ltd expects to complete its ongoing expansion projects by the end of 2020 which will take its capacity up from 12.5 to 20 MTPA (Million Tonnes per annum).
Once this new cement plant is commissioned it will raise the installed capacity of Ramco Cements to 10 mtpa in Andhra Pradesh making Ramco the largest cement manufacturer in the State.