Chennai, Aug 12: Madras Cements Ltd. is embarking on forward integration by setting up a ready-mix concrete (RMC) plant near Chennai. The plant, to be located at Medavakkam, will have a capacity of 45,000 cu mtrs and would cost about Rs 7 crore. It will commence production in two months. The company plans to set up two more plants in Chennai and similar plants in all major cities if the pilot plant turns out to be successful.Industry experts interpret the move as a bold initiative from the company as the market for RMC is still in a nascent stage. It is presently available in Mumbai, Pune and Bangalore. In Chennai, Larsen & Toubro is supplying very limited quantity of RMC out of the batching plant it has put up at the project site of Balaji Hotels.
RMC has many advantages. Its quality is good and consistent compared to the crude mixing done at the site. It is also environmentally friendlier as it obviates the necessity of bringing mud, gravel etc, to the site. Moreover, the manual labour is all buteliminated -- an obvious advantage to the builder.
Cement, for RMC production, is transported to the company's batching plant in bulk and is mixed with other ingredients such as mud and gravel in appropriate measure using computer controls. The mix so obtained is transported in semi-solid state by means of transit mixers-special purpose lorry, which has a revolving mixer to keep the mass within from solidifying.
Ordinarily, the mix would remain in that form for about an hour and to keep it in that form certain chemicals are added. Madras Cements initially plans to have seven such lorries. The lorries will transport the concrete to the site, where it can be poured straight away, drastically cutting down on labour.
Madras Cements claims to have got a favourable response from the builders on RMC. According to a company official, builders are willing to pay even 15 per cent more than the combined cost of cement, sand and gravels, as the labour cost is substantially saved.
Many cement manufacturers in thesouth are toying with the idea of setting up similar plants. India Cement, the industry leader in this region had plans, but had put it on hold as the excise duty on RMC made it unremunerative. With the excise duty on RMC removed now, it is waiting for market acceptance to improve to set up a plant. Most players in the industry agree that like in Europe and other developed nations bagged cement may be a thing of past in the next few years, provided the demand picks up.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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