Ramco Cements will focus on ramping up newly commissioned capacities while expanding its distribution network and strengthening its balance sheet in FY27 as the company prepares to capitalise on an expected recovery in cement demand.
In his message to shareholders in the company’s Annual Report 2025-26, Ramco Cements Managing Director P R Venketrama Raja outlined three strategic priorities for the year ahead—accelerating production from newly commissioned capacities, deepening market reach and sustaining financial discipline through cost management and debt reduction.
Focus on execution
Raja said the company’s immediate priority is to efficiently convert newly created capacity into productive volumes without compromising on pricing and realisations.
He added that Ramco Cements will strengthen its next-generation dealer relationships while expanding its Hard Worker distribution network across India to improve market penetration.
The company also plans to sustain its financial momentum by driving margin recovery, maintaining tight control over operating costs and further reducing net debt through stronger operating cash flows.
Demand outlook remains positive
According to Raja, long-term demand drivers for the cement industry remain intact despite near-term market challenges.
He pointed to continued government spending on infrastructure, affordable housing programmes and urban development across Tier-II and Tier-III cities under the City Economic Regions initiative as key growth catalysts.
“Our focus is clear—to be operationally ready when demand accelerates,” he said.
Financial discipline remains key
Ramco Cements continued to prioritise financial discipline during FY26 by monetising non-core assets.
The company crossed ₹1,000 crore in asset disposals, achieving its two-year monetisation target ahead of schedule. The proceeds were utilised to reduce net debt while continuing investments in capacity expansion and operational efficiency.
The company said these measures have resulted in a stronger balance sheet and a lower-leverage platform to support its next phase of growth.
Capacity expansion gathers pace
On the expansion front, Ramco Cements continues to increase production capacity through debottlenecking projects and brownfield investments.
At its Ariyalur facility, debottlenecking initiatives added 2 million tonnes per annum (MTPA) of capacity by leveraging existing kiln and infrastructure assets with limited capital expenditure.
The company is also undertaking debottlenecking at Ramasamy Raja Nagar and Jayanthipuram, which will increase clinker capacity by 1.63 MTPA and cement grinding capacity by 1.70 MTPA.
In addition, the Line II expansion at Kolimigundla, comprising 3.15 MTPA of clinker capacity and 3 MTPA of cement capacity, is expected to be commissioned by March 2027.
Growth to be driven by execution
Ramco Cements Chief Executive Officer A. V. Dharmakrishnan said FY27 will be centred on execution as new capacities become operational and market opportunities expand.
He said the company’s focus will be on translating recent investments into sustainable growth, stronger margins and an improved market position through disciplined operational execution.
Dharmakrishnan added that the organisation’s resilience during a challenging year provides confidence in its ability to deliver the next phase of growth.