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Ramco Cements plans for at least Rs 1,200 cr capex in two years

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The company bags limestone mine in Karnataka at 25% premium

Ramco Cements Limited told the media that the company plans for total capital expenditure (capex) of Rs 1,200-1,300 crore in the next two years to expand the capacity.

Its net debt stood at Rs 3,800 crore as of FY22, and it plans to repay Rs 500 crore debt in FY23. The company aims to become net debt-free by FY26 if no other major capex is planned.

The company told the media that at its Kurnool plant, trial production of clinker is ongoing, and the clinkering capacity has increased to 13.65 million tonnes per annum (mtpa).

The cement grinding facility, including 6 MW of Waste Heat Recovery System (WHRS) and 18 MW thermal power plant (TPP), will be commissioned during the second quarter (Q2) of FY23. Another 1-1.5 mtpa grinding capacity will come up in Karnataka at a capex of Rs 300-305 crore, with an ongoing land acquisition process.

The company won the limestone mine in Karnataka at a 25% premium from the base price, lower than the recent bids. These mines can be used for the integrated plant to be come up in the state. The mine can be used to feed the grinding unit in Maharashtra.

The company said the near-term scenario could sharply raise inflation costs and lag cement price increase. The average Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) per tonne of the past 10-12 years can be a sustainable profitability range.

It said that the price increase in the east is sustaining, while in the south, prices have dropped from the peak levels. The company proposes to take Rs 20-25 per bag, with the price increase in the south during June due to the hike in fuel prices.

In April and May, the company experienced robust demand on the low–base due to the second wave of the Covid-19 pandemic. However, the demand started to improve as infrastructure projects gained momentum in recent months. The industry could grow by 10%, whereas it is likely to achieve a volume growth of 15% in FY23.

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Also read:Ramco Cements to utilise green energy for clinker production

Concrete

CCU testbeds in Tamil Nadu

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Tamil Nadu is set to host one of India’s five national carbon capture and utilisation (CCU) testbeds, aimed at reducing CO2 emissions in the cement industry as part of the country’s 2070 net-zero goal, as per a news report. The facility will be based at UltraTech Cement’s Reddipalayam plant in Ariyalur, supported by IIT Madras and BITS Pilani. Backed by the Department of Science and Technology (DST), the project will pilot an oxygen-enriched kiln capable of capturing up to two tonnes of CO2 per day for conversion into concrete products. Additional testbeds are planned in Rajasthan, Odisha, and Andhra Pradesh, involving companies like JK Cement and Dalmia Cement. Union Minister Jitendra Singh confirmed that funding approvals are underway, with full implementation expected in 2025.

Image source:https://www.heavyequipmentguide.ca/

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JSW Cement gears up for IPO

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JSW Cement has set the price range for its upcoming initial public offering(IPO) at US$1.58 to US$1.67 per share, aiming to raise approximately US$409 million. As reported in the news, around US$91 million from the proceeds will be directed towards partially financing a new integrated cement plant in Nagaur, Rajasthan. Additionally, the company plans to utilise US$59.2 million to repay or prepay existing debts. The remaining capital will be allocated for general corporate purposes.

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Concrete

Cement industry to gain from new infrastructure spending

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As per a news report, Karan Adani, ACC Chair, has said that he expects the cement industry to benefit from the an anticipated US$2.2tn in new public infrastructure spending between 2025 and 2030. In a statement he said that ACC has crossed the 100Mt/yr cement capacity milestone in April 2025, propelling the company to get closer to its ambitious 140Mt/yr target by the 2028 financial year. The company’s capacity corresponds to 15 per cent of an all-India installed capacity of 686Mt/yr.

Image source:https://cementplantsupplier.com/cement-manufacturing/emerging-trends-in-cement-manufacturing-technology/

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