Ramco Cements Pours Rs 1,403 Crore into Sustainable Expansion, Doubles Capacity

The   has unveiled ambitious expansion plans aimed at enhancing production capacity and environmental sustainability measures across its manufacturing facilities. The company has earmarked an investment of Rs 1,250 crore to double the capacity at its Kalavatala integrated cement manufacturing complex in Andhra Pradesh. Additionally, it plans to inject Rs 153 crore into installing a waste heat recovery system (WHRS) with a capacity of 10 MW at the Ramasamy Raja Nagar Plant in Tamil Nadu.

Approved by the company's Board on 08 February, 2024, the expansion initiative at the Kalavatala Plant, situated in Kolimigundla Mandal, Nandyal District, Andhra Pradesh, involves doubling the clinker capacity to 6.3 MTPA and increasing cement capacity to three MTPA, along with augmenting the WHRS capacity to 15 MW. Upon completion, these expansions will elevate the company's aggregate installed capacity to 19 MTPA for clinker and 26 MTPA for cement by FY26.

The proposed 10 MW WHRS plant is slated for commissioning by March 2025, pending necessary regulatory approvals. These strategic expansions will bolster the company's WHRS capacity from 43 MW to 68 MW by FY26, contributing significantly to reducing greenhouse gas emissions and minimizing the environmental footprint associated with cement production.

Notably, the Kalavatala plant, the company's fifth integrated cement plant, has already achieved full capacity utilization. Looking ahead, the company anticipates a capital expenditure (capex) of Rs 390 crore for the current quarter, with an estimated total capex of Rs 1,700 crore for FY25, inclusive of maintenance capex.

News by Rahul Yelligetti