Bonus Issue / Corporate Action
Ramco Industries Raises Maksi Fibre Cement Board Plant Capex to ₹250 Crore
NSE
RAMCOIND
BSE
532369
Ramco Industries Limited has approved an increase in the project cost for its upcoming Fibre Cement Board manufacturing plant at Maksi, Madhya Pradesh. The revised project cost has been increased to ₹250 crore from the earlier approved ₹180 crore, while project specifications and capacity remain unchanged.
PRICE-SENSITIVE TRIGGER
Event: Board approval for increase in project cost of Maksi manufacturing facility.
Type: Capex Expansion / Project Cost Revision
Impact: Neutral
Immediate Effect: The higher capex outlay reflects escalation in investment requirements for the ongoing expansion project, while maintaining the company’s planned manufacturing capacity expansion strategy.
Key Metrics:
- Previous Project Cost: ₹180 crore
- Revised Project Cost: ₹250 crore
- Incremental Capex Increase: ₹70 crore
- Installed Capacity: 58,000 MT per annum
- Project Type: Fibre Cement Board Manufacturing Plant
- Location: Maksi, Madhya Pradesh
Highlight:
- Ramco Industries increased the project cost of its Maksi Fibre Cement Board facility by nearly 39% from the original estimate.
What Happened ?
Ramco Industries informed stock exchanges that its Board of Directors, during the meeting held on May 27, 2026, approved an upward revision in the project cost for its proposed Fibre Cement Board manufacturing facility at Maksi in Madhya Pradesh.
The company had originally approved the project on November 5, 2025 with an estimated gross project cost of ₹180 crore. The revised approved project cost now stands at ₹250 crore.
Ramco Industries clarified that apart from the increase in project cost, there are no changes in previously disclosed project details, including installed production capacity and project scope.
Key Details
Project Expansion Details:
- The project involves setting up a Fibre Cement Board manufacturing plant at Maksi, Madhya Pradesh.
- Planned installed production capacity remains 58,000 metric tonnes per annum.
- The project was originally approved in November 2025.
- Gross project cost has now been revised upward to ₹250 crore.
- Existing operational and technical parameters remain unchanged.
- The company has not disclosed any change in commissioning timeline.
Risk Analysis
Summary:
- While the expansion supports Ramco Industries’ long-term manufacturing growth plans, the rise in project cost increases capital allocation pressure and execution sensitivity.
Key Risks:
- Higher capex may impact return ratios if utilization ramps up slowly.
- Any delay in commissioning could affect project economics.
- Cost inflation in construction and equipment procurement may continue.
- Additional funding requirements could influence balance sheet leverage.
- Fibre cement demand visibility remains linked to housing and infrastructure activity.
Worst Case Scenario:
- If execution timelines are delayed or market demand weakens post commissioning, the higher project investment could reduce return on capital efficiency.
Risk Level: Medium
Company Commentary
- Board approved increase in project cost from ₹180 crore to ₹250 crore.
- The Maksi facility will continue with planned capacity of 58,000 MT per annum.
- No other changes have been made to previously disclosed project details.
- The approval was granted during the Board Meeting held on May 27, 2026.
Official Exchange Filing: Ramco Industries Ltd