News Stocks Ramco Cements Enhances Ariyalur Plant Capacity to 5.5 MTPA, Plans Major Expansions Across Multiple FacilitiesRamco Cements Enhances Ariyalur Plant Capacity to 5.5 MTPA, Plans Major Expansions Across Multiple Facilities
The Ramco Cements Limited has successfully enhanced cement grinding capacity at its Ariyalur Plant from 3.5 MTPA to 5.5 MTPA through completed de-bottlenecking activities. The company is pursuing additional expansions at Ramasamy Raja Nagar and Jayanthipuram facilities, with completion expected before March and June 2026 respectively. The Kolimigundla brownfield expansion has been enhanced to 3 MTPA cement capacity from the original 1.5 MTPA, with total investment within the sanctioned Rs.1,250 crores limit. By FY27 end, total capacity is expected to reach 20.72 MTPA clinker and 31.14 MTPA cement.
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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.
| Parameter: | Details |
|---|---|
| Existing Capacity: | 3.5 MTPA |
| Enhanced Capacity: | 5.5 MTPA |
| Capacity Addition: | 2 MTPA |
| Current Utilization: | 74% |
| Method: | De-bottlenecking |
| Status: | Already completed |
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
| Facility: | Existing Clinker | Existing Cement | Proposed Addition | Timeline |
|---|---|---|---|---|
| Ramasamy Raja Nagar, Tamil Nadu | 2.14 MTPA (91% utilization) | 3 MTPA (84% utilization) | 0.62 MTPA clinker, 1 MTPA cement | Before March 2026 |
| Jayanthipuram, Andhra Pradesh | 4.61 MTPA (75% utilization) | 3.65 MTPA (50% utilization) | 1.01 MTPA clinker, 0.7 MTPA cement | Before June 2026 |
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.
| Component: | Capacity |
|---|---|
| Clinker Capacity: | 3.15 MTPA |
| Enhanced Cement Capacity: | 3 MTPA (increased from 1.5 MTPA) |
| WHRS: | 15 MW |
| Investment: | Within sanctioned Rs.1,250 crores |
| Financing: | 70% borrowing, 30% internal accrual |
| Expected Completion: | Before March 2027 |
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.
Historical Stock Returns for Ramco Cements
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +3.79% | +7.48% | +11.97% | +4.84% | +35.34% | +29.36% |
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