Ramco Group is a diversified Indian conglomerate with interests in cement, textiles, software, and wind energy. Known for its flagship company Ramco Cements, the group operates multiple businesses across India and abroad, delivering innovative solutions and maintaining a strong presence in each sector.
Content:
- Ramco Group’s Company Overview and History
- Ramco Group Financials and Shareholder Returns
- How Ramco Group Started and the Growth of Its First Business
- How Did Ramco Group Expand into Subsequent Business Sectors?
- Ramco Group Revenue Split – How It Earns Across Different Sectors
- Challenges Faced by Ramco Group Across Its Businesses
- How Does Ramco Group’s Future Look in Terms of Growth and Strategy?
- How To Invest In Ramco Group Stock?
- Ramco Group Overview and Revenue Split – Quick Summary
- Ramco Group Stock And Its Revenue Across Business Segments – FAQs
Ramco Group’s Company Overview and History
Ramco Group is over 85 years old, founded in 1938 by Mr. P A C Ramaswamy Raja. Today, it is a USD 1 billion conglomerate with diversified interests across cement, textiles, software, energy, and biotechnology.
The group is family-owned, with Mr. P R Venketrama Raja serving as Chairman. Ramco Systems ranks among the top 100 global enterprise solution providers, while Ramco Cements is a leading cement manufacturer in India.
Ramco Group Financials and Shareholder Returns
The Ramco Cements Ltd reported ₹9,415.30 crore revenue and ₹360 crore net profit in FY 2024. With a 0.27% dividend yield, it delivered a 10.90% one-year return, showcasing consistent long-term growth over three and five years.
Metric | Value |
Revenue (FY 2024) | ₹9,415.30 crore |
Net Profit (FY 2024) | ₹360 crore |
Dividend Yield | 0.27% |
Return over 1 year | 10.90% |
Return over 3 years | 4.91% |
Return over 5 years | 13.70% |
How Ramco Group Started and the Growth of Its First Business
Ramco Group began in 1938 when Mr. P A C Ramaswamy Raja established a spinning mill in Rajapalayam, Tamil Nadu. At the time, the textile sector in South India was underdeveloped, and industrialization hadn’t reached many interior regions.
Despite the challenges, the venture laid a strong foundation for the Group’s future. The textile business grew steadily, driven by a focus on quality and innovation. Today, this legacy continues under the leadership of Mr. P R Venketrama Raja, Chairman of the Ramco Group.
Below is a chart showcasing the current revenue of The Ramco Cements Ltd:
How Did Ramco Group Expand into Subsequent Business Sectors?
Ramco Group steadily expanded beyond textiles, leveraging innovation and sectoral opportunities to establish a strong presence in manufacturing, technology, and sustainability across India and global markets.
- 1940s – Surgical Cotton: Following its textile venture, Ramco Group entered healthcare manufacturing with Ramaraju Surgical Cotton Mills. This move helped diversify operations while meeting demand for medical-grade cotton, especially during the World War II and post-war healthcare push.
- 1950s – Spinning Expansion & CSR: The Group enhanced its spinning capabilities and established the Ramco Community Services Trust, showing early commitment to both industrial growth and social responsibility, supporting education, healthcare, and rural development in its home region.
- 1960s – Cement and Building Materials: Ramco Group entered the cement and building materials sector by launching Ramco Cements and Ramco Industries. This strategic move aligned with India’s infrastructure boom and laid the foundation for one of its flagship businesses.
- 1990s – Software Solutions: Ramco Systems was founded to deliver enterprise-level software and ERP solutions. It leveraged emerging tech trends, eventually becoming a globally recognized player among the top 100 enterprise software solution providers.
- 2000s–Present – Wind Energy & Education: Ramco diversified into wind energy to support sustainability and reduce its carbon footprint. It also entered the education sector, reaffirming its long-term commitment to community development and future-ready business expansion.
Ramco Group Revenue Split – How It Earns Across Different Sectors
Ramco Group operates across various Sectors, each contributing uniquely to its revenue. Here’s an overview:
The Ramco Cements Ltd: The Ramco Cements Ltd leads the group with a robust revenue of ₹9,415.3 crore in FY24. Its consistent performance reflects strong demand in the construction sector, contributing the lion’s share to the group’s overall financial strength.
Ramco Industries Ltd: Ramco Industries Ltd generated ₹1,515.6 crore in revenue for FY24. Known for its building materials like fiber cement sheets, the company plays a vital role in infrastructure development while maintaining a significant presence within the Ramco Group’s diversified portfolio.
Ramco Systems Ltd: Ramco Systems Ltd reported revenue of ₹529.9 crore in FY24. Specializing in cloud-based enterprise software, it represents the technology wing of the group, delivering innovative solutions in HR, logistics, and ERP to global clients.
Rajapalayam Mills Ltd: Rajapalayam Mills Ltd, a key textile division of the Ramco Group, posted ₹868.6 crore in revenue during FY24. The company is known for high-quality yarn production and continues to support the group’s industrial presence in the textile sector.
Challenges Faced by Ramco Group Across Its Businesses
The main challenges faced by Ramco Group across its businesses include navigating economic slowdowns, intense market competition, rising input costs, and the need for constant technological upgrades to stay relevant in an increasingly digital and sustainability-focused global landscape.
- Economic Slowdowns: Global and domestic economic fluctuations impact demand for cement, textiles, and software. Ramco must balance production and pricing while maintaining profitability during downturns and uncertain macroeconomic conditions.
- Market Competition: In sectors like cement and software, the Group faces fierce competition from large domestic and multinational players. Sustaining market share requires continuous innovation, branding, and operational efficiency.
- Rising Input Costs: Increases in raw material prices, energy tariffs, and logistics costs directly affect profit margins, particularly in cement and textiles. Managing these while maintaining quality remains a persistent challenge.
- Technology Upgradation: Staying ahead in the software sector and modernizing manufacturing processes demands consistent investment in R&D and technology, posing challenges in terms of capital allocation and talent acquisition.
How Does Ramco Group’s Future Look in Terms of Growth and Strategy?
The main focus of Ramco Group’s future growth strategy is to leverage innovation and technology to strengthen its core businesses, expand into new markets, and enhance sustainability efforts across its diverse portfolio.
- Digital Transformation and Innovation: Ramco Systems is investing in advanced technologies like AI and machine learning to enhance its enterprise solutions, aiming to streamline operations and offer cutting-edge services to clients worldwide.
- Sustainable Practices: The group is emphasizing sustainability by adopting eco-friendly practices in manufacturing and exploring renewable energy sources, aligning with global environmental standards, and reducing its carbon footprint.
- Global Market Expansion: Ramco is targeting growth in international markets by customizing its products to meet regional demands, establishing strategic partnerships, and expanding its global footprint to increase market share.
- Talent Development: Investing in human capital through continuous learning and development programs is a key strategy, ensuring that the workforce is equipped with the necessary skills to drive innovation and support the group’s growth objectives.
How To Invest In Ramco Group Stock?
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Ramco Group Overview and Revenue Split – Quick Summary
- Founded in 1938, Ramco Group is a USD 1 billion, family-owned conglomerate led by Mr. P R Venketrama Raja, with leading businesses in cement, software, textiles, energy, and biotechnology.
- Ramco Cements Ltd posted ₹9,415.30 crore revenue and ₹360 crore profit in FY 2024, with steady returns and a 0.27% dividend yield, reflecting strong financial performance.
- Ramco Cements Ltd reported consistent revenue growth over three years, rising from ₹6,031.7 Cr in FY22 to ₹9,415.3 Cr in FY24, indicating strong business expansion.
- Ramco Group expanded from textiles (1938) into surgical cotton (1940s), cement (1960s), software (1990s), and wind energy and education (2000s), evolving into a diversified, innovation-driven conglomerate.
- The Ramco Group companies collectively earned strong revenues in FY24, led by The Ramco Cements Ltd at ₹9,415.3 crore, followed by Ramco Industries, Rajapalayam Mills, and Ramco Systems, highlighting a diversified business portfolio.
- Ramco Group faces challenges like economic slowdowns, intense competition, rising input costs, and constant need for tech upgrades, impacting its operations across cement, textiles, and software sectors, requiring strategic agility.
- Ramco Group’s future growth focuses on digital innovation, sustainability, global expansion, and talent development, aiming to strengthen core businesses and build a competitive edge in evolving markets and technologies.
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Ramco Group Stock And Its Revenue Across Business Segments – FAQs
Ramco Group earns most of its revenue from The Ramco Cements Ltd with ₹9,415.3 crore, followed by Ramco Industries at ₹1,515.6 crore, Rajapalayam Mills at ₹868.6 crore, and Ramco Systems at ₹529.9 crore in FY 2024.
Ramco Group is a diversified Indian conglomerate engaged in cement, textiles, software, building materials, renewable energy, and biotechnology. It focuses on innovation, sustainability, and quality to deliver value-driven products and services across industries.
Ramco Group is a family-owned business currently chaired by P R Venketrama Raja. He took over leadership from his father, P R Ramasubrahmaneya Rajha, continuing the legacy started by founder P A C Ramaswamy Raja in 1938.
The key businesses under Ramco Group include Ramco Cements Ltd, Ramco Industries Ltd, Ramco Systems Ltd, and Rajapalayam Mills Ltd. The group also has ventures in wind energy, biotechnology, and educational initiatives.
In FY 2023–24, Ramco Group’s key companies collectively generated approximately ₹12,329 crore in revenue. The Ramco Cements Ltd led with ₹9,415.3 crore, followed by Ramco Industries Ltd at ₹1,515.6 crore, Rajapalayam Mills Ltd at ₹868.6 crore, and Ramco Systems Ltd at ₹529.9 crore.
The cement segment, represented by Ramco Cements Ltd, is the largest contributor, generating ₹9,415.3 crore in FY 2024. This accounts for about 76% of the group’s total revenue, highlighting its dominance in India’s cement industry.
Ramco Group’s key stock, The Ramco Cements Ltd, delivered a 10.90% return over 1 year, 4.91% over 3 years, and 13.70% over 5 years, reflecting moderate but stable long-term performance in the Indian stock market.
Yes, Ramco Group companies have issued bonus shares in the past. The Ramco Cements Ltd. declared a 1:1 bonus in October 2008, while Ramco Industries Ltd. announced 1:1 bonuses in October 1994 and September 2009.
The Ramco Cements Ltd, the main stock of the Ramco Group, has major shareholding by promoters at 42.60%, followed by domestic institutional investors at 33.50%, public shareholders at 16.60%, and foreign institutional investors holding 7.30%.
Ramco Group increased its stake in The Ramco Cements through share acquisitions, with Ramco Industries investing up to ₹160 crore. Ramco Energy Plc acquired Eagle HC Limited, while the group also added Ramco Printing, Polythene Industries, and Platinum Packaging.
Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.