Ramco cements has completed the disposal of non-core assets worth Rs.59.56 crores to Rainbow Foundations Limited on 26 February 2026. The transaction represents a continuation of the company's strategic asset disposal program aimed at debt reduction and financial optimization.

Asset Disposal Strategy Progress

The latest transaction brings the total value of non-core assets disposed by the company to Rs.1,080.82 crores. This achievement surpasses the company's initial target announced in November 2024, when it proposed to dispose of non-core assets with a targeted value of approximately Rs.1,000 crores.

Previous Disposal Announcements

The company's asset disposal program was first announced during the Q2FY25 results in November 2024, with an initial target of Rs.1,000 crores. Subsequently, in December 2025, the company expanded its disposal plans by announcing the intention to dispose of additional non-core assets worth approximately Rs.200 crores.

Transaction Details and Compliance

The disposal was executed through a sale deed between The Ramco Cements Limited and Rainbow Foundations Limited. The transaction involves the sale of land owned by the company and has been disclosed under Regulation 30(4) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Impact

The proceeds from the disposal of non-core assets are being directed toward reducing the company's debt obligations. This strategic approach to asset optimization demonstrates the company's commitment to strengthening its balance sheet and improving financial efficiency through the monetization of non-essential assets.

The successful completion of this disposal program, which has exceeded the original Rs.1,000 crore target, positions the company favorably for enhanced financial flexibility and reduced debt servicing costs.

Ramco cements has announced significant capacity enhancements at its Ariyalur Plant in Tamil Nadu, successfully increasing cement grinding capacity from 3.5 Million Tonnes per Annum (MTPA) to 5.5 MTPA. The enhancement was achieved through de-bottlenecking activities conducted on both Line 1 and Line 2 of the cement grinding system, representing a substantial 2 MTPA capacity addition that has already been completed.

Ariyalur Plant Capacity Enhancement

The Ariyalur facility expansion demonstrates the company's focus on optimizing existing infrastructure to meet growing demand. The plant's capacity utilization currently stands at 74%, providing room for increased production volumes.

Multi-Plant Expansion Strategy

The company is simultaneously pursuing capacity additions at two other key facilities through similar de-bottlenecking initiatives. These strategic expansions target both clinker and cement production capabilities across the organization's manufacturing network.

Ramasamy Raja Nagar and Jayanthipuram Facilities

Kolimigundla Brownfield Expansion

The company has enhanced its brownfield expansion plans at Kolimigundla, Nandyal District, Andhra Pradesh. The cement capacity component of this project has been increased from the originally planned 1.5 MTPA to 3 MTPA, while maintaining the 3.15 MTPA clinker capacity and 15 MW WHRS components.

Strategic Capacity Targets

These comprehensive expansion initiatives position the company for substantial growth in production capabilities. By the end of FY27, the total organizational capacity is projected to reach 20.72 MTPA for clinker and 31.14 MTPA for cement across all facilities. The expansion strategy combines both optimization of existing assets through de-bottlenecking and strategic brownfield development to meet market demand while maintaining operational efficiency.