Supreme Infra to expand RMC business

MUMBAI: Supreme Infrastructure India is expanding its ready-mix concrete (RMC) business by adding two more units. Currently, 20% of the company���s revenue comes from the RMC business.

Supreme is conducting a feasibility study to put another RMC unit either in Kolkata or Chennai, apart from Pune, with a total investment of Rs 25 crore, which includes land costs, a source said.

The demand for RMC has been soaring in India in the past few years. The company supplies RMC to companies like Hiranandani, Nirmal Lifestyle, China Petroleum and BL Kashyap. Currently, Supreme has four RMC units at Powai and Bhiwandi with a capacity of over 90 cubic meter of RMC per hour. The other two plants are at Thane and Karnataka.

When contacted by ET, Vikas Sharma, whole-time director of Supreme Infrastructure, said, ���We are studying a few more sites for RMC units, but nothing has been finalised yet. The company is looking at growing the business in the coming years.���

Supreme Infrastructure also has plans to acquire concrete pump, asphalt pavers, transit mixers, tippers and excavators.

RMC is made on demand and can be transported to worksites by concrete mixer trucks. It eliminates need for storage space for basic materials at site and consequent wastage. As compared with the global construction market, in India, RMC accounts for 3% of the total concrete offtake.

Analysts said that RMC was used only in the metros till a few year ago, but the demand of the same is growing in tier-II and III cities as well. Even smaller entrepreneurs have started setting up RMC units. R

MC business has been growing steadily and the market, which was around Rs 1,000 crore a couple of years ago, has now grown to around Rs 2,000 crore.