The Hindu Business Line : Ready-mix concrete gaining ground

EVEN as the concept of ready-mix concrete (RMC) is still catching up in the country, cement majors are keenly focussing on entering the new area in a big way.

Anticipating huge potential for the product, cement majors, including Associated Cement Companies, Grasim, L&T, India Cements, Priyadarshini Cements, Chettinad Cement and Madras Cements, are foraying into the RMC business and the share of RMC is expected to go up from present levels of around 5 per cent of the total cement production to the global average of 70 per cent, according to industry players.

Envisaging higher demand, the 16.4-million tonne cement major, ACC is planning to beef up its existing RMC infrastructure of 11 units with two new RMC units — one at Noida and the other in Mumbai, during the current year. During the last fiscal, Madras Cements set up two RMC plants near Chennai, with a capacity of approximately 9 lakh cubic metres, while Chettinad Cements installed an RMC facility near Coimbatore.

Grasim's RMC business accounted for a turnover of Rs 116 crore during 2003-04, against a turnover of Rs 59.8 crore during the previous year.

Initially launched in Mumbai, the growth of RMC is predominantly driven by demand from the metro cities. In Mumbai, the mandatory use of RMC in construction of flyovers provided the requisite impetus to growth, according to an ICRA analysis. RMC refers to concrete made in industrial facilities called ready-mix plants, which is generally made on demand and can be shipped to worksites by concrete mixer trucks.

According to industry players, RMC caters better to the needs of the public works and construction industries. Using RMC eliminates need for storage space for basic materials at site and the procurement and wastage of basic materials is avoided. Also, labour associated with production of concrete is eliminated, an industry player said.

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