In a strategic move towards bolstering its cement production capabilities, The Ramco Cements has unveiled ambitious plans to invest Rs 1,250 crore in doubling the capacity of its Kalavatala integrated cement manufacturing complex in Andhra Pradesh. The company’s Board, in a significant development on February 8, 2024, greenlit the proposal for Line II at the Kalavatala Plant, situated in Kolimigundla Mandal, Nandyal District.
This expansion initiative encompasses a substantial augmentation of clinker capacity to 6.3 MTPA and cement capacity to three MTPA. Furthermore, a cutting-edge Waste Heat Recovery System (WHRS) with an additional capacity of 15 MW is slated to be integrated into the Kalavatala facility. Upon successful implementation, these enhancements will propel the aggregate installed capacity of The Ramco Cements to an impressive 19 MTPA for clinker and 26 MTPA for cement by FY26.
Simultaneously, the company is set to invest Rs 153 crore in the establishment of a 10 MW WHRS at its Ramasamy Raja Nagar Plant in Tamil Nadu, with a targeted commissioning date of March 2025. Complementing the existing WHRS units, this expansion is poised to elevate the aggregate WHRS capacity from 43 MW to an impressive 68 MW by FY26. These WHRS installations play a pivotal role in mitigating greenhouse gas emissions, aligning with the company’s commitment to reducing its environmental footprint in cement production.
The Kalavatala plant, the fifth integrated cement facility in The Ramco Cements’ portfolio, has already achieved maximum operational efficiency with 100 per cent capacity utilisation. This substantial investment underscores the company’s forward-looking approach and commitment to meeting the burgeoning demand for quality cement while concurrently embracing eco-friendly practices.
In the current quarter, the company anticipates incurring a capital expenditure (capex) of Rs 390, with the estimated FY25 capex standing at Rs 1,700 crore, inclusive of maintenance capex. This financial commitment reflects The Ramco Cements’ dedication to fostering sustainable growth and innovation within the dynamic landscape of the cement industry.