The Ramco Cements Limited announced a multi-pronged capacity enhancement strategy involving debottlenecking and brownfield expansion across three major locations. The Ariyalur plant’s cement grinding capacity was increased by 2 MTPA. Further debottlenecking at Ramasamy Raja Nagar and Jayanthipuram will add 1.62 MTPA of clinker and 1.7 MTPA of cement. Additionally, a brownfield expansion at Kolimigundla is increasing clinker by 3.15 MTPA and cement by 3 MTPA, targeting year-end FY27 capacities of 20.72 MTPA (clinker) and 31.14 MTPA (cement).
Capacity Enhancement Across Key Manufacturing Sites
The Ramco Cements Limited has informed stakeholders regarding significant capacity increases achieved and currently underway at its various production facilities. These initiatives are aimed at capitalizing on existing infrastructure through debottlenecking and strategic brownfield expansion.
Ariyalur Plant Debottlenecking (Tamil Nadu)
The company successfully completed the debottlenecking of the cement grinding system at its Ariyalur Plant in Tamil Nadu (Govindapuram). The combined cement grinding capacity for Line 1 and Line 2 has been enhanced from 3.5 MTPA to 5.5 MTPA, representing a 2 MTPA addition. This expansion was already finalized as of the date of the announcement.
Debottlenecking at Ramasamy Raja Nagar & Jayanthipuram
The company is simultaneously undertaking debottlenecking activities at its plants located at Ramasamy Raja Nagar (Tamil Nadu) and Jayanthipuram (Andhra Pradesh). Key additions from these efforts include:
- Clinker Addition: 0.62 MTPA at Ramasamy Raja Nagar and 1.01 MTPA at Jayanthipuram.
- Cement Addition: 1 MTPA at Ramasamy Raja Nagar and 0.7 MTPA at Jayanthipuram.
These debottlenecking projects are expected to be completed in phases, with the Ramasamy Raja Nagar facility targeted before March 2026 and the Jayanthipuram facility before June 2026. The financing for this segment will be through Internal accrual.
Brownfield Expansion at Kolimigundla
Further details were provided regarding the brownfield expansion underway at Kolimigundla, Nandyal District, Andhra Pradesh. This project, first intimated in February 2024, has seen an enhancement in the proposed cement capacity addition:
- Clinker Capacity Addition: 3.15 MTPA.
- Cement Capacity Addition: Initially proposed at 1.5 MTPA, this has now been enhanced to 3 MTPA.
- WHRS Addition: 15 MW.
This expansion is anticipated to be completed before March 2027. The estimated investment, within the already sanctioned limit of Rs.1,250 crores, will be financed by 70% Borrowing and 30% Internal accrual.
Projected Capacity by End of FY27
Upon successful completion of all ongoing and proposed projects detailed in the disclosure, the company projects its total capacities by the end of FY27 to reach:
- Total Clinker Capacity: 20.72 MTPA.
- Total Cement Capacity: 31.14 MTPA.
Source: BSE
