Malabar Cements was incorporated in April 1978 with a capital investment of â‚¹68.01 crores.At that juncture of history, Kerala was facing acute shortage of cement for its developmental works both at Government sector and private quarter. Cement was a controlled commodity and the state has to depend on either cement from other states of the country or cement from foreign countries. Way back in 1961-62 the Geological Survey of India had identified a cement grade limestone deposit in the Walayar reserve forest and the Mineral Exploration Corporation Limited further confirmed its efficacy. It was, in fact, in this milieu, the State Government mooted the idea of setting up a Government owned Cement factory.
The Limestone mine is located at Pandarathu hills inside the Walayar reserve forest about 9 km from the Walayar plant. The Limestone raised and crushed at the mine is brought to the Walayar Plant through mono cable ropeway about 6 km long, through the lush green dense forest.
The feasibility study unambiguously showed the construction of a 1200 tpd dry process cement plant using the Pandarethu limestone is feasible. KSIDC obtained an Industrial License for the manufacture of cement in November 1976 and decided to go ahead with the project and formed Malabar Cements Limited under the Companies Act to set up, own and operate the proposed cement plant. The plant was successfully commissioned and the commercial production was commenced in April 1984 at this Walayar plant.
The unit at Walayar, with a production capacity of 6.6 lakh MT per annum, is the largest. As an expansion programme, a 2.0 lakh MT clinker-grinding unit at Cherthala in Alappuzha district was commissioned in August 2003,thus raising the total installed capacity to 8.6 lakh MT. With the expansion plans in the anvil, the figures are to ascent further.
MCL provides direct employment to nearly 850 persons and to a 1000 number indirectly.