Concrete

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

Published

4 years ago

June 10, 2022

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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

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Concrete

Cement Firms to Invest Rs. 130 bn in Green Energy by FY28

Cement companies plan to expand clean energy capacity to 6 GW by FY28

Published

3 days ago

September 17, 2026

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India’s major cement companies are set to raise their clean energy capacity to 6 GW by March 2028 from around 4 GW at the end of March 2026, according to ratings agency ICRA. The planned expansion is expected to involve investments of Rs. 130 bn over the next two years.

The additional capacity could generate annual savings of Rs. 62 bn to Rs. 67 bn, resulting in an estimated payback period of 1.8 to 2.2 years. Cement is an emission-intensive industry, and leading producers have established net-zero roadmaps covering the next 15 to 20 years.

The calcination process accounts for 57 to 60 per cent of the sector’s total emissions, while fuel combustion contributes 27 to 30 per cent and electricity consumption accounts for 10 to 13 per cent. ICRA said the figures highlighted the need for a broad decarbonisation strategy involving green power, blended cement, alternative fuels and improvements in clinker efficiency.

Green energy is considered one of the most commercially attractive decarbonisation options because it can reduce emissions while lowering operating costs. Every 5 per cent increase in green power replacement can reduce power and fuel costs by Rs. 15 to Rs. 16 per tonne. A 25 per cent replacement level could therefore save Rs. 75 to Rs. 80 per tonne and expand operating margins by 140 to 160 basis points.

Cement producers are also assessing carbon capture, utilisation and storage, although high implementation costs, energy requirements and limited transport and storage infrastructure are expected to slow commercial adoption. The government has proposed Rs. 200 bn over five years to support deployment across key sectors. Meanwhile, companies are targeting thermal substitution rates of 10 to 15 per cent over the next three to five years, compared with the current industry level of around 6 per cent.

Concrete

Centre Defers Clearance for Limestone Mine Near Bustard Habitat

Panel seeks revised mining plan and safeguards for pipelines and wildlife

Published

4 days ago

September 16, 2026

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The Centre has deferred environmental clearance for a proposed limestone mine near a Great Indian Bustard habitat in Ramgarh, Rajasthan’s Jaisalmer district. The critically endangered species has an estimated wild population of about 130 in India.

Concrete

Telangana to Supply Subsidised Cement for Indiramma Houses

Poor families allotted Indiramma houses to receive cement at Rs. 230 per bag

Published

4 days ago

September 16, 2026

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The Telangana government will supply cement at a subsidised price of Rs. 230 per 50-kg bag to poor and low-income families allotted Indiramma houses. The prevailing market price is between Rs. 310 and Rs. 320 per bag, the Assembly was informed on Thursday.