Ready mix concrete biz becoming attractive

Chennai, May 15

The ready mix concrete (RMC) business is considered an emerging business opportunity for large players in the construction and cement sectors who are bound to invest in this area in the coming years.

Industry leaders in the business peg last year’s commercial sales of RMC at about 12 million cu.m valued at about Rs 4,500 crore. The growth in infrastructure projects and construction industry are driving the growth of the RMC business.

Based on the demand for RMC equipment, manufacturers say that the industry has been growing at about 30 per cent yearly for the last 2-3 years and is likely to sustain at this level for the next few years.

The organised segment of the business is dominated by a few large players — RMC producers will have to be market leaders in the construction business or have access to cement or aggregates, be able to support the capital intensive business and deal with a customer base that is restricted only to large developers and infrastructure players.

Cement manufacturers who have maintained a low profile in the RMC business say that with growth in construction in the coming years, the RMC business would be increasingly attractive.

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