Ramco Cements , a leading Indian cement manufacturer, has announced a significant expansion of its construction chemicals portfolio with the launch of 'Hard Worker', a new brand identity for its specialized product range. This strategic move aims to transform the company from a cement manufacturer to a comprehensive construction solution provider.

New Brand Identity and Product Range

The 'Hard Worker' brand encompasses a range of 20 specialized products, including tile adhesives, waterproofing solutions, bonding agents, and repair mortars. All products are manufactured in-house at Ramco's facilities, emphasizing the company's commitment to quality control and sustainability.

P.R. Venketrama Raja, Managing Director of Ramco Cements, stated, "Hard Worker is more than a brand — it is a salute to the hardworking spirit of everyone, from construction workers and builders to individual homeowners. This launch reinforces our commitment to delivering application-specific solutions our customers can rely on, every time."

Ambitious Growth Targets

The Construction Chemicals division of Ramco Cements generated revenue of ₹210.00 crores. With the launch of 'Hard Worker', the company has set an ambitious target of ₹2,000.00 crores in revenue from this division within the next 4-5 years, representing a tenfold growth.

A.V. Dharmakrishnan, CEO of Ramco Cements, shared the company's vision: "With Hard Worker, we are unifying and expanding our Construction Chemicals range to 20 products today and another 20 products coming soon. This would transform us from just a cement manufacturer to a complete 'Construction Solution Provider' making it easier for customers to find the perfect fit for their needs, while ensuring world-class performance."

Market Expansion and Marketing Strategy

Currently, the 'Hard Worker' product range is available across Tamil Nadu, Kerala, Karnataka, Andhra Pradesh, Odisha, and West Bengal through Ramco's extensive dealer network. The company plans to leverage its existing cement distribution network of over 9,700 dealers and 24,000 sub-dealers to expand its reach.

To support the launch, Ramco Cements is preparing a nationwide 360-degree marketing campaign that will span TV, digital, outdoor, and in-store branding. Balaji K Moorthy, Executive Director – Marketing, emphasized the importance of this campaign in creating strong awareness for the 'Hard Worker' brand.

Industry Outlook and Company Position

The Indian construction chemicals market is projected to reach ₹40,000.00 crores by 2030, driven by rapid urbanization and infrastructure expansion. Ramco Cements, with its annual revenue of approximately ₹8,500.00 crores, is well-positioned to capitalize on this growth.

The company operates 11 cement plants with a total clinker capacity of 16 MnTPA and cement capacity of 24.44 MnTPA. Additionally, Ramco Cements has invested in sustainable energy, operating 403.94 MW of captive power, including thermal, waste heat recovery systems, and wind energy.

As Ramco Cements transitions from a traditional cement manufacturer to a comprehensive construction solution provider, the 'Hard Worker' brand launch marks a significant milestone in the company's strategic growth plan. With its focus on innovation, quality, and customer-centric solutions, Ramco Cements aims to play a pivotal role in shaping the future of India's construction chemical landscape.

Ramco Cements has successfully resolved a significant legal dispute regarding the disallowance of CENVAT Credit on Outward Freight, marking a positive development for the company's financial outlook.

Legal Dispute Resolution

The cement manufacturer announced that its appeal before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) was remanded back to the Original Authority, namely the Assistant Commissioner of GST and Central Excise, Villupuram. Following this, the Original Authority issued an order on August 11, dropping further proceedings related to the dispute.

This resolution effectively settles the matter, which was valued at Rs. 1.11 Crores. The company received the order via email at 4:08 PM on the same day, bringing closure to this long-standing issue.

Reduction in Pending Disputes

In a broader context, Ramco Cements also reported a notable decrease in similar pending disputes with various statutory authorities. The total value of such disputes has been reduced from Rs. 8.00 Crores to Rs. 6.89 Crores, indicating progress in resolving multiple legal challenges.

Compliance and Disclosure

The company's announcement aligns with its obligations under Clause 8 of Para B, Part A of Schedule III, read with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. It also adheres to SEBI Circular No: SEBI/HO/CFD/PoD2/CIR/P/2023/120 dated July 11, 2023, which mandates disclosures on ongoing material litigations.

Impact and Outlook

The resolution of this dispute and the reduction in overall pending litigation value represent positive developments for Ramco Cements. These outcomes are likely to contribute to improved financial stability and potentially reduce legal expenses for the company moving forward.

Investors and stakeholders may view these developments favorably, as they demonstrate the company's ability to navigate and resolve regulatory challenges effectively. The successful resolution of such disputes can enhance a company's regulatory compliance profile and potentially improve its standing with regulatory authorities.

As Ramco Cements continues to address its remaining legal challenges, the market will likely monitor the company's progress in further reducing its litigation exposure and the potential impact on its financial performance.