The Ramco Cements Ltd

• Cement grinding capacity at Ariyalur increased from 3.5 to 5.5 MTPA. • De-bottlenecking ongoing in Tamil Nadu and Andhra Pradesh plants. • Brownfield expansion at Kolimigundla raised cement capacity from 1.5 to 3 MTPA. • Overall clinker and cement capacities to reach 20.72 and 31.14 MTPA by FY27.

🔍 Overview:

The company has announced several capacity enhancements across its cement manufacturing plants through de-bottlenecking and brownfield expansion projects. Capacity expansion means increasing the volume of cement and clinker the company can produce annually.

🌾 Ariyalur Plant Expansion:

• Capacity increased from 3.5 Million Tonnes Per Annum (MTPA) to 5.5 MTPA.
• This was achieved by de-bottlenecking, a process that optimizes existing production lines for higher efficiency.
• Utilization before was at 74% of 3.5 MTPA capacity.

⚙️ Other Plant Upgrades:

• Ongoing de-bottlenecking at Ramasamy Raja Nagar (TN) and Jayanthipuram (AP).
• Ramasamy Raja Nagar: Clinker 2.14 MTPA, Cement 3 MTPA, utilization at 91% and 84%.
• Jayanthipuram: Clinker 4.61 MTPA, Cement 3.65 MTPA, utilization 75% and 50%.
• Capacity additions planned: Ramasamy Raja Nagar gets 0.62 MTPA clinker and 1 MTPA cement; Jayanthipuram gets 1.01 MTPA clinker and 0.7 MTPA cement.
• Expected completion by March and June 2026 respectively.

🏗️ Brownfield Expansion at Kolimigundla:

• Previous plan: 3.15 MTPA clinker and 1.5 MTPA cement.
• Updated cement capacity increased to 3 MTPA.
• This is expected to be completed by March 2027.
• Power plant (WHRS) capacity of 15 MW is also part of the expansion.
• Investment within sanctioned limit of Rs. 1,250 crores; financing planned with 70% borrowing, 30% internal funds.

📅 Overall Capacity Outlook by FY27:

• Clinker capacity to reach 20.72 MTPA.
• Cement capacity to reach 31.14 MTPA.

🧩 Implications:

• These capacity increases could allow the company to produce more cement and clinker, potentially meeting higher demand.
• De-bottlenecking shows efficiency improvements in existing plants without entirely new setups.
• Brownfield expansion adds new capacity in existing sites, possibly saving time and costs compared to greenfield projects.

⚠️ Neutral Notes:

• The news focuses on capital and operational expansion rather than financial results or market conditions.
• While increased capacity enhances production potential, actual impact depends on market demand and other factors.

In summary, the company is actively expanding its production capacity through various projects aiming for significant capacity increases over the next two financial years.