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Prism Johnson Nears Completion of 0.208 MTPA Capacity Expansion at RU Cement Unit, Eyes Operational Boost in Q2


Updated: July 23, 2025 13:00

Image Source: JS Partners
Prism Johnson Ltd is on the verge of completing a 0.208 million tonnes per annum (MTPA) capacity enhancement at its RU Cement unit, signaling a strategic move to strengthen its cement production capabilities. The expansion is expected to be commissioned in Q2 FY26, aligning with the company’s broader growth roadmap in infrastructure and housing sectors.
 
Key Highlights:
  • The 0.208 MTPA enhancement will take RU Cement’s total installed capacity to approximately 6.5 MTPA, improving supply chain efficiency in northern and central India.
  • The upgrade includes modernization of clinker grinding systems and installation of energy-efficient vertical roller mills.
  • Prism Johnson has invested ₹110 crore in the project, funded through internal accruals and short-term debt.
Operational Context:
  • The company reported Q1 FY26 cement segment revenue of ₹1,042 crore, up 12.6 percent year-on-year, with EBITDA margin improving to 14.3 percent.
  • Volume growth was driven by demand recovery in Tier-II cities and government-led infrastructure projects.
  • Prism’s integrated cement operations include captive limestone mines, waste heat recovery systems, and fly ash utilization from nearby thermal plants.
Strategic Outlook:
  • Analysts expect the new capacity to support margin expansion and reduce logistics costs, especially in high-demand zones like Uttar Pradesh and Madhya Pradesh.
  • The company is also evaluating further brownfield expansions and debottlenecking opportunities at Satna and Kymore units.
  • Prism Johnson aims to reach 8 MTPA capacity by FY28, supported by sustainable manufacturing and digital process optimization.
Source: Business Standard, Prism Johnson Investor Update, Moneycontrol (July 2025)

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