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Ramco Cements Ltd is proposing to spend about ₹750 crore expanding capacity in Odisha and also acquiring land for its new project in Karnataka during this fiscal.
“Our capex commitment for FY24 includes adding another 0.9 million tonnes of grinding capacity at the Haridaspur plant in Odisha at a minimal outlay of ₹130 crore, given other infrastructure is already in place. An estimated sum of ₹620 crore is earmarked for acquiring land for the Bommanalli project in Karnataka. Both of these projects will also help increase our market share, AV Dharmakrishnan, CEO, said in the company’s annual report.
In Odisha, the company plans to establish Line II at its existing Grinding Unit, located at Haridaspur, Jajpur District. The additional output would help the company enhance its market share in Odisha and other Eastern States.
Preferred Bidder
The Company has been declared the Preferred Bidder by the Department of Mines and Geology, Government of Karnataka, for the Bommanalli Limestone Block in Kalburgi District, Karnataka, and has been issued a Letter of Intent for the grant of a mining lease. Accordingly, the Company has deposited ₹40 crore with Government Departments as upfront payments, which are eligible for adjustment against royalty payable upon commencement of mineral production.
In FY23, the company incurred a total capex of ₹1,765 crore in capacity expansion programmes.
Meanwhile, the Company’s focus on premiumisation continued to gather momentum in FY23.
“Our tailor-made products, designed to meet the technical requirements of specific construction needs, be it housing, infrastructure, or mega-projects, are gaining wider acceptance as they deliver greater value compared to commoditised cement. Our focus on premiumisation has been a step forward in this direction,” PR Venkatrama Raja, Managing Director of the Company said in the report.
Premiumisation
Premiumisation has been helping Ramco Cement improve realisation and protect profitability. The company has enhanced the share of the premium portfolio in the overall sales mix to 25 per cent in FY23, up from 22 per cent in the previous year.
To strengthen its premium portfolio, the company has commissioned two dry mix product units in Tamil Nadu, while two other units in Andhra Pradesh and Odisha are scheduled for commissioning during this fiscal.
Its R&D unit, the Ramco Research and Development Centre (RRDC), which employs more than 40 people, has been at the forefront of driving Ramco’s premiumisation.
The company’s MACE (Mason, Architect, Contractors, and Engineers) division has been promoting the widespread adoption of Ramco’s right products for the right applications. Its strong 344-member team offers personalised, on-site technical assistance to customers for proper application techniques in order to gain maximum benefits.
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