Ramco Industries Ltd, a part of the south-India based Ramco Group of companies, was incorporated in 1965 for manufacturing asbestos sheets and pressure pipes. The asbestos sheet industry is mature in terms of usage and has almost no replacement on account of long life of the product. Of late, the product is facing stiff competition in developed markets from products like galvanised steel sheets. Besides, the product is also facing resistance gobally from environmentalists on grounds that it is hazardous to human health. This prompted Ramco to diversify into textiles and software. In 1999, however, the company`s software division was divested to form Ramco Systems to take advantage of the encouragement by the government to the rapidly growing information technology industry.
The company currently has three divisions, namely building products division, textile division and wind mills. The company`s building products division produces fibre cement sheets, fibre cement pressure pipes and calcium silicate boards. As part of backward integration, the company embarked on a proposal to set-up a cement clinker grinding plant at Kharagpur, West Bengal, adjoining its FC sheet plant for manufacture of cement (raw material for production of FC sheets). Work on the plant is under progress. The textile division is a 100% EOU. The wind mills division has a capacity of 6.25 MW. The company`s major revenue earner is its building products division. Among the new projects under implementatiion are its FC Sheets and accessories at Bhuj, Gujarat (annual production capacity of 72,000 mt.) and a new cotton yarn spinning mill at Rajapalaiyam, Tamil Nadu, with a capacity of 14,400 spindles. With quantitative quota restrictions having been removed to the EU countries and USA, the company sees textiles as the next big growth area for itself.
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