India’s cement output likely to grow by 6-8% in FY24: Raja

India's cement production is expected to grow 6-8% in FY24, driven by infrastructure-led investment and mass residential projects. RCL is strategically investing in new capacities and optimising logistics to ensure effective market reach. The company is also conserving financial resources and reducing debt, and plans to monetise non-core assets.

India’s cement production for the current financial year is expected to grow by 6-8% driven by infrastructure-led investment and mass residential projects, said Ramco Cements Ltd. (RCL) managing director P. R. Venketrama Raja.

“Going forward, there is enough optimism for the industry,” he said in the latest annual report adding production in FY23 was estimated to have grown by 7-8% to 380-390 million tonnes.

Regarding the company’s expansion plans, he said RCL was strategically investing in new capacities across South and East markets as well as focusing on optimising logistics movement. These steps would ensure effective market reach at sustainable cost.

During the year, the cement major will be increasing the grinding capacity by 0.9 million tonnes at Odisha at an outlay of ₹130 crore and waste heat recovery system capacity from 40 MW to 43 MW to reduce energy consumption

About ₹620 crore has been set aside for acquiring land for Bommanalli project in Karnataka, said CEO AV Dharmakrishnan.

“We have our sight on conserving financial resources and reducing debt to an optimal level. Long-term borrowings have increased, to meet the capital expenditure for ongoing capacity expansion projects. Besides, the company also plan to monetise non-core assets over the next two years,” he said.