Ramco Cements to to add 3MT with Rs 1,100-crore investment

By: | Published: August 4, 2017 6:06 AM

Expecting a strong revival in the demand, The Ramco Cements (formerly known as Madras Cements) has embarked upon a Rs 1,100 crore capacity expansion at its grinding units in Andhra Pradesh, Odisha and West Bengal.

The company’s board which met here on Thursday for the quarterly results, has approved the company’s proposal to add 3.1million tonne per annum capacity across the satellite grinding units in these states. (Representative Image: Reuters)

Expecting a strong revival in the demand, The Ramco Cements (formerly known as Madras Cements) has embarked upon a Rs 1,100 crore capacity expansion at its grinding units in Andhra Pradesh, Odisha and West Bengal. The company’s board which met here on Thursday for the quarterly results, has approved the company’s proposal to add 3.1million tonne per annum capacity across the satellite grinding units in these states. The company will complete the expansion in next 18 months, post which the total capacity of the company would touch 20 million tonne per annum. As part of this exercise, the capacity of the Vishakapatnam grinding unit will be increased from 9 lakh tonne per annum to 2 million tonne per annum and similarly Kolaghat grinding unit capacity will be increased from 9 lakh tonne per annum to 2 million tonne.

A new grinding unit will be put up at Odisha with an initial annual capacity of nine lakh tonne. All these three capacity additions will involve an investment of R1,100 crore, the company added. Profit for the first quarter stood at Rs 155.81 crore, much like the first quarter of the previous fiscal when it registered a profit of Rs 155.93 crore.

Revenue for the quarter has gone up 5.27% to Rs 1,194 crore during the quarter as compared to Rs 1,124 crore in the same quarter last fiscal. When contacted, AV Dharmakrishnan, CEO, The Ramco Cements, told FE: “We expect a marked demand improvement for the commodity in places such as Andhra Pradesh, West Bengal, Odisha and the capacity expansion has been aimed at addressing the same.”

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