Madras Cements to invest Rs 300 cr

Madras Cements has lined up investments to the tune of Rs 300 crore for the present financial year, of which Rs 225 crore will be utilised for setting up a thermal power project.

According to the company’s 2011-12 annual report, its Ramasamy Raja Nagar plant is in the process of installing a roll press for increasing the cement-grinding capacity from the present level of 210 tonne per hour (TPH) to 260 TPH.

The cost of the project, including installation of kankar crusher and fly ash-handling system, is Rs 110 crore. The project is expected to be commissioned in March 2013.

At its Salem grinding unit, the company is in the process of installing a roll press for increasing the cement-grinding capacity from the present level of 90 TPH to 230 TPH at a cost of Rs 60 crore. The project is expected to be commissioned in 2012-13.

On the power front, at the Salem grinding unit, a heavy-fuel, oil-based power generator of 5 Mw was commissioned in August 2011. In Ariyalur, the company had commissioned a 2x20-Mw thermal power plant in 2010-11 and another 20-Mw thermal power plant is proposed to be commissioned in the first quarter of 2012-13.

In Ramasamy Raja Nagar, a 25-Mw thermal power plant would be commissioned in the first quarter of 2012-13, the company said. It may be noted that the company has a wind farm, which generated 285.5 million Kwh in 2011-12, as compared to 357.2 million Kwh in the previous year.

Out of the 275.2 million units generated in Tamil Nadu, 69.7 million units are meant for adjustment against the power consumed in the company’s plants and balance 2,055 lakh units have been sold to Tamil Nadu Electricity Board (TNEB) for a value of Rs 61.59 crore.

The income from the division was Rs 96.18 crore during the year, as against Rs 122.28 crore in the previous year. The installed capacity of the wind farm is 159.19 Mw comprising 229 wind electric generators.

On the its outlook, the company has stated that the demand for cement was expected to grow at eight per cent in the coming year due to the continued fillips given for the infrastructure projects.

“The company expects to sustain and improve the output levels of all the units during the year. Also, the company will have the benefit of increased production from its new projects, which will enable the company to meet the increased market demand for cement,” it said in the report.