Consolidating Strengths. Ready for Future
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ANNUAL REPORT 2020-21 Consolidating Strengths. Ready for Future. Contents Corporate overview 01 Introduction to theme GUIDED BY HIS VALUES 02 Company overview 04 Manufacturing facilities 06 Geographic presence 08 Product suite 10 Quarterly highlights 12 Key performance indicators 16 Chairman’s message 18 CEO’s message 20 Corporate strengths 22 Capacity expansion 26 Product diversity 28 Innovation 32 Technology 34 Sustainability Shri. P.A.C. Ramasamy Raja 36 Sustainability – Environment Founder 38 Sustainability – Social 1894-1962 44 Biodiversity 46 Sustainability – Governance 48 Board of Directors 50 Leadership team BUilt BY HIS VISION 51 Senior executive team 52 Awards and accolades 54 15-year highlights 55 Corporate information Statutory reports 56 Notice to the Members 64 Board’s Report 116 Business Responsibility Report Financial statements 125 Separate financial statements 203 Consolidated financial statements “Gurubakthamani” Shri. P. R. Ramasubrahmaneya Rajha 10 Sridharmarakshakar - Former Chairman Cement manufacturing 1935-2017 facilities Lives of great men all remind 1 us, we can make our lives R&D centre sublime, and, departing, leave behind us, footprints on More than 6 decades the sands of time of experience Read online or download this report at www.ramcocements.in Consolidating strengths. Ready for future. We believe that the key to achieving long-term growth and be future-ready remains in our ability to strategically leverage our strengths and seize opportunities. At Ramco Cements, this is what we Our scale, integrated and responsible have been doing with single-minded operations, innovation capabilities and and unwavering focus. We have been network, reinforces our confidence continually augmenting capacities in in a growing Indian economy where new strategic locations with increased the rapid infrastructure creation and emphasis on integration for logistics and the reviving real estate demand are cost efficiencies and on sustainability bound to unleash mega opportunities. for responsible growth. We are We are well-positioned to conquer investing in IT and better manufacturing the expanding market opportunities, technologies to enhance our operational especially in largely underpenetrated efficiency and optimise cost. We have markets of eastern India, where intensified research and innovation a large part of infrastructure to enhance portfolio with superior, creation is happening. value-added cements. And, we have created an ecosystem aimed at helping customers choose the right products for right applications to get maximum benefit from our products. During the financial year (FY) 2020-21, these efforts reaped benefits as we delivered growth in profits and market share gain even amidst unprecedented challenges. 1 THE RAMCO CEMENTS LIMITED Annual Report 2020-21 Company overview A name that resonates dominance The Ramco Cements Limited is the fifth-largest cement producer in India and the most popular cement brand in South India. In our six-decade experience, our products have found applications in multiple marquee projects as well as won the trust of millions of customers. About us Ethos Since our commencement of operations in 1961, Ramco Cements VISION VALUES has been one of the well-renowned To continuously improve productivity Customers continued satisfaction cement manufacturers across the through quality, technology and the sensitivity to their needs country. Headquartered in Chennai, upgradation and customer is our source of strength and we manufacture various grades of focussed operations security. If there is no customer, cement, in addition to ready mix there is no business concrete and dry mortar products. To position ourselves in the cement Over the years, we have established business as a pacesetter and grow in We do not look at productivity a widespread dealer and sub-dealer the same and related business as a game in numbers. We try to network, and enduring relationships To seek greenfield location for growth learn from others, be committed to with stakeholders. We are accredited on the basis of developed synergies quality and always stay ahead in with ISO 9001:2015, ISO 14001:2015 of the existing operations terms of technology and OHSAS 18001 certification, which To operate economically, socially and Our self-determined ethical validate our quality management environmentally sustainable manner governance standards light our system, compliance with stringent path of progress To update management practices on environmental norms and a continuous basis and maintain a We have strong faith in the innate occupational health and safety of culture of professional management creative abilities and infinite employees, respectively. potential of human resources. To conserve, protect and Freedom to professional managers, We are listed on both National Stock enhance quality of life for our open channels of communication, Exchange of India Limited (NSE) and employees and community transparency in whatever we BSE Limited (BSE) with a market To preserve the credence in our do, participative management, capitalisation that stood at `23,650 motto “our real resources are involvement of the workers in their crores as on March 31, 2021. the human assets” leisure time in community and social work are evidences of our faith in human resources We believe that when the organisation grows, the society and the community around us should also grow Even while continuing to achieve sustained growth through fair, just and ethical means, we strongly believe in respecting others sentiments and values 2 Corporate Overview Statutory Reports Financial Statements Value added by business activities FY 2020-21 FY 2019-20 ₹ 3,762.40 crores ₹ 3,393.34 crores 1% 1% 2% Contribution to 2% Contribution to Providers the society Providers the society of equity of equity capital 53% capital 58% Contribution Contribution to the to the national national exchequer exchequer 11% 28% 11% 23% Paid to employees Retained for Paid to employees Retained for as wages and business (including as wages and business (including benefits depreciation benefits depreciation 5% and deferred tax) 5% and deferred tax) Providers of debt Providers of debt 19.40 MTPA 3,374 8,285 15,385 Total cement manufacturing Employee strength as No. of Dealers No. of Sub-Dealers capacity (Integrated cement on March 31, 2021 plants - 12.20 MTPA Satellite grinding units 7.20 MTPA) 318.95 MW AA+ (stable) A1+ Captive power capacity Credit rating by ICRA for Credit rating by both (Thermal Power – 175 MW long-term borrowings ICRA and CRISIL for Waste Heat Recovery short-term borrowings System – 18 MW Windfarms – 125.95 MW) *MTPA: Million tons per annum 3 THE RAMCO CEMENTS LIMITED Annual Report 2020-21 Manufacturing facilities Our manufacturing excellence We have state-of-the-art manufacturing units having modern equipment, digital and sustainable technologies, and captive power plants. This enables us to achieve quality, operational excellence and environmentally sustainable manufacturing. We are consistently focussed on becoming leaner and self-sufficient. Manufacturing excellence Integrated cement plants Sustainable and cost-effective logistics: Proximity to raw material sources and end markets as well as seaports and rail routes Sustainable and cost-effective power: Captive power meets 87% of internal requirement of which 9% is through renewable sources i.e. green power Sustainable and cost-effective Ramasamy Raja Nagar, Virudhunagar, Alathiyur, Ariyalur, raw material: Use of industrial Tamil Nadu Tamil Nadu wastes in manufacturing 2.00 3.05 Cement capacity (MTPA) Cement capacity (MTPA) 25 MW 42 MW Captive power (TPP) Captive power (TPP) Govindapuram Village, Ariyalur, Jayanthipuram, Kumarasamy Tamil Nadu Raja Nagar, Andhra Pradesh 3.5 3.65 Cement capacity (MTPA) Cement capacity (MTPA) 66 MW 60 MW Captive power (TPP) Captive power (WHRS + TPP) 4 Corporate Overview Statutory Reports Financial Statements Grinding units Uthiramerur, Kancheepuram, Valapady, Salem, Gobburupalam, Vizag, Tamil Nadu Tamil Nadu Andhra Pradesh 0.50 1.60 2.00 Cement capacity (MTPA) Cement capacity (MTPA) Cement capacity (MTPA) Uses green power of 4.95 MW from the Uses green power of 9.90 MW from the Uses 3.70 MW of gas power from Andhra Company’s windfarms Company’s windfarms Pradesh Gas Power Corporation Limited Kharagpur, Paschim Medinipur, Kolaghat, Purba Medinipur, Haridaspur, Jajpur District, West Bengal West Bengal Odisha 0.20 2.00 0.90 Cement capacity (MTPA) Cement capacity (MTPA) Cement capacity (MTPA) 5 THE RAMCO CEMENTS LIMITED Annual Report 2020-21 Geographic presence Extensive and expanding market presence Leveraging decades of experience, we have emerged as one of the leading manufacturers of cement in India, on the back of a strong distribution network and consistency in expanding our reach across new markets. With our four integrated plants and six grinding units, we have presence across ten states of India. We have a deep presence in the South India markets, and a growing presence in East India markets and in Sri Lanka and Maldives. Integrated cement plants Packing plant 1. Ramasamy Raja Nagar, 12. Kumarapuram, Kanyakumari Virudhunagar District, Tamil Nadu District, Tamil Nadu 2. Alathiyur, Cement Nagar, Ariyalur District, Tamil Nadu Readymix concrete plant 3. Govindapuram Village, Ariyalur 13. Chennai, Tamil Nadu District, Tamil Nadu 4. Jayanthipuram, Kumarasamy Raja Nagar, Krishna Dry mortar plant District, Andhra Pradesh 14. Sriperumbudur, Tamil Nadu Upcoming Integrated R&D centre cement