Ramco Cements to set up a green field cement plant in Andhra Pradesh

Company lines up for Rs 34.30 billion in AP, Odhisha and West Bengal

The Ramco Cements Ltd would set up a 3.15 MTPA green field cement plant in Andhra Pradesh. The company would invest around Rs 15 billion in the new plant. The company is also making another Rs 2.5 billion in its grinding capacity in the state. Total capex, including these projects, would be around 34.30 billion by end of 2020, said company officials.

With investments, the capacity in Andhra Pradesh would be close to 10 MTPA, making the company the largest Cement Manufacturer in Andhra Pradesh.

Foundation stone for the new plant was laid by Chief Minister of Andhra Pradesh Chandrababu Naidu on Friday.

The plant will come at Kalavatala, Kolimigundla Mandal, Kurnool District at an investment of around Rs 15 billion.

The company proposes to expand its clinker capacity from 3.10 MTPA to 4.60 MTPA along with Waste Heat Recovery System (WHRS) of 27 MW at its Jayanthipuram plant in Krishna District at a cost of Rs 7.4 billion. This project is expected to be commissioned in March 2020.

The company is also expanding its grinding capacity at Vizag by another 1 MTPA with the investment of Rs 2.50 billion for increasing the capacity from 0.9 MTPA to 2 MTPA. It is expected to be commissioned in March 2020.

The company said that environment clearance has been obtained for the proposed plant. The required mining lease for the proposed plant is in place.

This project is expected to generate direct employment of 300 people and indirect employment of around 1000 people.

The company is also embarking upon its expansion of its grinding capacities in Eastern States viz., Odisha and West Bengal. In Odisha, the company is establishing a green field grinding plant with a capacity of 0.9 MTPA at a cost of Rs 5.15 billion with Railway siding facility.

This is expected to be commissioned by September 2019. The company is also expanding its grinding capacity in Kolaghat, East Midnapore district, West Bengal from 0.9 MTPA to 2 MTPA at a cost of Rs 4.25 billion with Railway siding facility. This unit is expected to be commissioned in April 2019.

With the above capital expenditure plan of Rs 34.30 billion, the Ramco Cements Limited is set to reach the cement capacity of 20 MTPA by end of year 2020. The proposed capex is expected to be funded largely through internal accruals and balance through borrowings.