Image Source: ICICI Direct
Ramco Cements Ltd has taken a decisive step toward energy efficiency and environmental stewardship by commissioning an 8 MW Waste Heat Recovery System (WHRS) at its Ramasamy Raja Nagar cement plant in Tamil Nadu. This strategic move not only enhances the plant’s energy self-sufficiency but also aligns with the company’s broader sustainability goals and expansion roadmap.
Strategic Upgrade at Ramasamy Raja Nagar
The newly commissioned WHRS boosts the plant’s waste heat power generation capacity from 2 MW to 10 MW, marking a fivefold increase in on-site energy recovery. This upgrade is part of Ramco’s ongoing efforts to reduce its carbon footprint and optimize operational efficiency across its manufacturing units.
Key highlights of the commissioning
• The 8 MW WHRS utilizes heat from kiln and clinker cooler exhaust gases, converting it into usable power without additional fuel consumption
• With this addition, Ramco Cements’ total waste heat recovery capacity across all plants has risen from 45.15 MW to 53.15 MW
• The Ramasamy Raja Nagar facility now stands as one of the most energy-efficient cement plants in the region, with a combined WHRS capacity of 10 MW
Financial and operational impact
• The WHRS is expected to significantly reduce the plant’s dependence on grid electricity, lowering energy costs and improving profit margins
• Ramco Cements reported a net profit of ₹84.5 crore in Q1 FY26, up from ₹36.5 crore in the same period last year, with improved EBITDA margins of 19.1 percent
• The cost savings from WHRS operations are likely to further enhance the company’s bottom line in the coming quarters
Environmental and regulatory alignment
• The WHRS installation supports Ramco’s commitment to reducing greenhouse gas emissions and aligns with India’s push for industrial decarbonization
• The system contributes to the circular economy by capturing and repurposing waste heat that would otherwise be lost
• Ramco’s proactive approach also positions it favorably in light of the recent GST rate cut on cement from 28 percent to 18 percent, effective September 22, which is expected to stimulate demand and reward efficient producers
Expansion roadmap and future outlook
• Ramco Cements has proposed a ₹153 crore investment to further expand WHRS capacity at Ramasamy Raja Nagar to 10 MW by March 2025
• The company’s aggregate WHRS capacity is projected to reach 68 MW by FY26, with additional installations planned at its Kalavatala plant in Andhra Pradesh
• These initiatives are part of a larger ₹1403 crore expansion strategy aimed at increasing clinker and cement production capacities to 19 MTPA and 26 MTPA respectively
Industry significance and competitive edge
• Ramco’s WHRS commissioning sets a benchmark for energy innovation in the Indian cement sector, where energy costs account for a significant portion of production expenses
• The move reinforces Ramco’s reputation as a forward-thinking manufacturer committed to sustainable growth and technological advancement
• As environmental regulations tighten and energy prices fluctuate, WHRS adoption is expected to become a key differentiator among cement producers
Conclusion
The commissioning of the 8 MW Waste Heat Recovery System at Ramasamy Raja Nagar is more than a technical upgrade—it’s a strategic leap toward a greener, more resilient future for Ramco Cements. By harnessing waste heat and converting it into clean energy, the company is not only cutting costs but also contributing meaningfully to India’s climate goals. With further expansions on the horizon, Ramco is poised to lead the industry in sustainable cement production.
Sources: CNBC-TV18, The Hindu Business Line, Biltrax Construction Data, Ramco Cements Ltd official disclosures, Green Business Centre Energy Awards documentation.
Advertisement
Advertisement
