Renaatus commits Rs. 50 cr. to AAC plant

Renaatus Procon, part of the RPP Group, is investing Rs. 50 crore to set up a plant at Tirunelveli to produce AAC (Autoclaved Aerated Concrete) blocks.

Chairman and managing drector of the group, R.P. Selvasundaram and CEO of Renaatus Procon G. Suresh Kumar told the media on Saturday that RPP started a plant near Chennai in 2011 to make AAC blocks consisting of flyash and cement.

These blocks are used largely in high-rise buildings and infrastructure projects.

The Tirunelveli plant will be operational by January 2019. The firm’s main markets for its Renacon brand are Tamil Nadu, Kerala and Karnataka. The total capacity of the two plants is 3 lakh cubic metres a year. As logistics account for 25-30% of the product cost, Renaatus plans to have regional plants. “By 2022, we want to set up a plant in another State,” Mr. Kumar said.

The country has about 100 plants making AAC blocks and the market is growing 15% annually.

Chemicals tie-up

Another focus area for Renaatus is construction chemicals. It draws inputs for the business from a German firm and is now exploring a technical tie-up.

The group’s interests span construction projects, M-Sand, ready-mix concrete and AAC blocks. Its annual turnover is Rs. 350 crore and its target is Rs. 600 crore by 2020.

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