The Housing and Real Estate Sector in India (and so for Kolkata) is the biggest demand driver of
Cement & Readymix Concrete (RMC) accounting for about 65 per cent of the total consumption
in India. The other major consumer include public infrastructure at 20 per cent and industrial
development at 15 per cent. The eastern states of India are likely to be the newer and virgin
markets for cement & concrete and could contribute to their bottom line.
Though the RMC sector is growing rapidly at a pace of 15 - 20 per cent annually the business is
still in its infancy - in industrialized countries ready mix concrete forms around 70 -75 percent of
the market share where as in India it is at 20%. So there is ample scope of growth and huge
untapped market.
Construction companies are ramping up projects for faster completion and handover. This is
spurring the RMC industry. Many real estate developers and players in infrastructure and
industrial sectors are moving to RMC products owing to time and cost benefits. With RMC, work
gets done more speedily than mixing concrete at site and it further ensures uniform and
consistent quality. Another factor to growth of RMC is specially for environment friendly.
Readymix solutions are better in terms of lifecycle cost of the products, green and sustainability.
• Capacity utilization goes to 80% in second year , reaches 90 – 95% in 3rd to 4th year
• Projected PBT in 5 years close to 8.5 Cr.
• Cash profit (EBITDA) – 9.5 Cr.
• Total Investment proposed – 6 cr (Capital Investment - 2cr & Working Capital - 4 cr)
• Expected payback – within 5 years