Ramco Cements to invest INR35bn in expansion programme

India’s Ramco Cements has confirmed plans to invest INR35bn (US$501m) to expand its production capacity from 12Mt to 20Mt by 2020, following the conclusion of the country’s general election.

"The uncertainty has ended and stability is back at the centre," said P R Venketrama Raja, chairman and managing director, Ramco Cements. "We expect the new government to focus on major infrastructure projects that will spur growth in the cement sector."

The company has already invested INR12bn in upcoming greenfield, brownfield and grinding projects across the country. In the FY19-20, it plans further capital expenditure of INR15bn.

"During the current fiscal, the cement industry might report a 7-8 per cent growth, whereas Ramco Cements will post 10-12 per cent growth," said A V Dharmakrishnan, CEO, Ramco Cements. "Our expansion programme is on track. The West Bengal unit is already on stream. We expect the Odisha plant to be ready by October, Vishakapatnam plant will be ready by December, Jayanthipuram by July 2020 and Kurnool by March 2021."