The plant is, at present, producing 4500 cu mtrs of RMC every month. The 10 transit mixers owned by the company for ferrying RMC is a common sight in Chennai.

While confirming the development, a senior L&T official incharge of RMC business said the company has identified land at Perungudi in the outskirts of Chennai and the plant will be relocated in the alternate site by December this year.

He explained that the plant's present location was not slated to be a permanent one, in the first place, as the land has been originally identified for putting up the construction training institute to be estabilished by L&T.

L&T, he said, which has about sixRMC plants across the country wanted to test the product in the conservative Chennai market and hence put up the plant in the piece of land owned by it on an experimental basis. Seeing the excellent response to the product, the company was already in the process of identifying land to relocate the plant when the TNPCB issued the notice, the official added. He also said that the company plans to set up more units and land has been identified in Ambattur for putting up another plant.

According to cement industry experts, RMC is much more environment friendly as it removes the need to transport cement, sand and gravels to various construction sites to be mixed there. The process of manufacturing RMC is pollution free as there are no effluents or chemical reactions. In the latest generation RMC plants the computers aid in the quantum of mix thereby enabling production of high and uniform quality concrete.

Madras Cements Ltd is putting up a 12,000 cu mtrs per month RMC plant at Medavakkam in Chennai and isexpected to become operational early next month. The company has plans to set up similar plants in all big towns. Fletcher Challange, a New Zealand-based company has also announced plans to put up similar plants in Chennai.

INISGHT:

Shifting will not affect profitability

Readymix cement plants ideally have to be located near the construction site as the product's shelf life is only two hours. Thus L&T setting up the plant near the construction site is justified. Further, it takes very little time to set up a RMC plant, so shifting the plant will have little impact on the company's profitability.

However, the company is now setting up the plant on the outskirts of Chennai which in that city will not be a problem as traffic congestion is not really a problem. Further, the company has tested the market and is likely to consolidate its position after it sets up a permanent plant.