Ramco Cements hints at Rs 1,000 cr capex

The Ramco Cements Ltd has reaffirmed that its capacity augmentation programme is progressing as scheduled, with total cement production set to touch 30 million tonnes by next year.

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The Rs.8,500 crore company aims to achieve a cement capacity of 30 MTPA (million tonnes per annum) by March 2026, supported by Kolimigundla Line-2, additional WHRS units, and new railway sidings. Debottlenecking initiatives across plants are also under way. A capital outlay of more than Rs.1,000 crore has been earmarked for FY26.

“We have grown into the country’s fifth-largest cement producer with an annual capacity of 24 million tonnes, and are firmly on course to reach 30 million tonnes by March 2026,” said A V Dharmakrishnan, CEO, Ramco Cements.

At Kolimigundla, railway siding construction was completed in July 2025, with both outward and inward operations commencing. A 5 MW WHRS at Ramasamy Raja Nagar will be commissioned by Aug 2025, with the balance 5 MW set for Sep 2025. Another 15 MW WHRS at Kolimigundla is expected to be completed along with Kiln Line-2 in FY27. Meanwhile, the company commissioned its Construction Chemicals unit in Odisha in July 2025.

To date, Ramco has monetised Rs.501 crore of its targeted Rs.1,000 crore non-core assets. The balance is likely to be realised before September 2025, slightly delayed from its earlier July target as regulatory clearance is awaited.

Ramco had maintained its leadership position in states such as Tamil Nadu and Kerala. However, following the acquisition of Indian Cements, Ultratech has emerged as the market leader, with Ramco slipping to second place. With the addition of new capacities, Ramco is aiming to regain its leadership position in these states.

India remains the world’s second-largest cement manufacturer, with nearly 10% of global installed capacity. As of FY25, the country’s cement capacity stood at around 670 MTPA, with nearly 40 MTPA added during the year.

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