21-11-2012, 05:21 PM
Ramco Cements
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Abstract:
A report on the management and production processes of Ramco cements.Ltd. The report discusses about the foundation and management of the flagship company of Ramco group and its unique methods of management and production processes which made them one of the top producers of Portland cement in India. Also, the report includes an interview with the company representative on the present marketing strategy and ways to compete with foreign competitors along with the opinion of various cement dealers across south India.
INTRODUCTION
India is the second largest producer ofcement with a total installed capacityof 150 million tons per year. AndhraPradesh, Madhya Pradesh, Gujarat,Rajasthan, and Tamil Nadu are flushed with limestone reserves and accountfor the major installed capacity. Withthe highest fixed capital investment of about U.S$1 billion/Rs.46.20 billion,the cement industry is the third-largestemployer.
The demand of cement is directly linkedto the economic growth of the country.With the national gross domestic product(GDP) expected to grow at 7 to 8 percentannually, the demand for cement isexpected to grow at 10 percent.
The housing sector is the largestconsumer of cement in India, accountingfor about 60 percent of the total consumption. Infrastructure (includingroads, urban development, dams, etc.)accounts for another 25 percent ofthe total demand. Others account forthe balance of 15 percent. With theboost given by the government to thehousing sector, and the emphasis oninfrastructure development, cementconsumption is anticipated to growsharply in the coming years.
Madras Cements, a company that belongs to the Ramco Group is one of the prominent names in cement industry in South India. Established in 1987, at Vijayawada in Andhra Pradesh it is a fully computerized cement producing company through the five units located in various parts of South India. It is the fifth largest cement producing company in India having the capacity to manufacture 10 million tons per annum. The company continuously strives to improve its efficiency through the use of technology, quality, renewal and customer centric operations. The company uses the most advanced technology to manufacture cement of the highest quality for its clients spread across various parts of India and the world.
Madras Cements ranks among the leading manufacturers of cement in India and is one of the few companies which manufacture cement at a very economical rate. The company has its own captive power plant that runs on gas and a 20 megawatt power generator. It looks to update the organization practices on a regular basis to uphold the culture of professional management in the company. The major exporters of Madras Cements are Iran and Sri Lanka.
Birth of Cement Plants
The first plant of MCL at Ramasamy Raja Nagar, near Virudhunagar in Tamil Nadu commenced its production in 1962 with a capacity of 200 tonnes, using wet process. In 70's, the plant switched over to more efficient dry process. A second kiln was also added to bring the total capacity to 12 lakh ton per annum. The second venture of MCL is its Jayanthipuram plant near Vijayawada in A.P set up in 1987. The 16 lakh ton per annum plant employs the latest state of art technology.The third venture of MCL is at Alathiyur in TN set up in 1997 and expanded by addition of another line in 2001. The 30 lac ton per annum plant is the most modern plant in the country.
Other Ventures
In 2000, MCL acquired Gokul Cements situated in Mathod in Karnataka whose capacity is 600 TPD. Being an eco-friendly company, MCL set up the Ramco Windfarm in 1993 at Muppandal TN. This was followed by wind farms in Poolavadi near Coimbatore in 1995 and Oothumalai in 2005. The combined capacity of these two put together is about 45 MW.In the year 1999, MCL commissioned the most sophisticated Ready Mix Concrete Plant in Medavakkam in South Chennai. In 2002, a state-of-art Dry Mortar plant was commissioned near Sriperumpudur, Tamilnadu which manufactures dry mortar; cement based putty and tile fix compound.