Madras Cements expands production capacity
01 June 2007
Chennai: Madras Cements plans to add 40 lakh tonnes to its existing production capacity of 60 lakh tonnes. The company which reported a nearly four times jump in net profit in 2006-07, expects to sustain and improve its output during the current year supported by a growth in demand.
The company attributed its performance to a tight rein on costs.
The company is doubling its wind power generation capacity to 120 MW, which would substantially contribute to the control on energy costs.
Madras Cements, which has a total production capacity of 60 lakh tonnes, will add 20 lakh tonnes by September, when it will commission a 4,000-tonne-a-day kiln at its Jayanthipuram factory.
The company is also setting up a 20-lakh-tonne a year cement project in Ariyalur, which would be commissioned in June 2008. This project, coming up at a cost of Rs967 crore, includes 56.7-MW of wind electric generators to substantially meet the power requirements.
It also announced plans to set up grinding units in Tamil Nadu, Andhra Pradesh and West Bengal, where fly ash is available and markets are in the vicinity. This would help to bring down the transportation costs for the company.