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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

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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AI boom drives demand, says ACA

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The American Cement Association projects a nearly 1Mt annual increase in US cement demand over the next three years, driven by the surge in AI data centres. Consumption by data centres is expected to grow from 247,000 tonnes in 2025 to 860,000 tonnes by 2027. With over 5,400 AI data centres currently operating and numbers forecast to exceed 6,000 by 2027, the association cautions that regulatory hurdles and labour shortages may impact the industry’s ability to meet demand.

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Concrete

GoldCrest Cement to build plant in India

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GoldCrest Cement will build a greenfield integrated plant with a 3.5Mt/yr clinker capacity and 4.5Mt/yr cement capacity. GoldCrest Cement appointed Humboldt Wedag India as engineering, procurement and construction contractor in March 2025 and targets completion by March 2027. It has signed a 40-year supply agreement with Gujarat Mineral Development Corporation for 150Mt of limestone from its upcoming Lakhpat Punrajpur mine in Gujarat.

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