In order to raise its production capacity, the state-run Malabar Cements (MCL) plans to set up another cement mill at Walayar.
The proposed cement mill is expected to double the firm's output capacity from the present 50,000 tonne per month, reports indicate.
The company is also expected to set up a 4,000 tonne silo along with the expansion programme. There is a 1,000 tonne silo at Walayar which is used to store fly ash which will act as a buffer in case of any supply interruption. There has been a 5 per cent reduction in the cost of materials as a whole, reports indicate.
The firm plans either to purchase domestically from public sector units or import half the limestone. The firm worked out a long-term arrangement with the Cement Corporation of India (CCI) for clincker. Meanwhile, Tamil Nadu Generation and Distribution Company (Tangedco) is supplying dry fly ash, another raw material, for cement production.
Malabar Cements signed an agreement with Tangedco for fly ash supply in order to eliminate middlemen and bring out more transparency in its dealings. Tangedco was supplying 400 metric tonne of flyash daily to MCL.
Meanwhile, MCL is expected to announce a profit of Rs 48 crore in 2013-14 in spite of rise in power cost by Rs 9 crore, reports indicate.