TCL explores residential project development after property sales plan falls flat

Faced with a prolonged financial crunch, State-run Travancore Cements Limited (TCL) is now exploring the options of developing its property in Kochi city into a residential project to secure better returns, rather than outright sale.

Official sources said the company has received directives from the State government to engage a professional architect to facilitate the land’s development, with the ultimate aim of allocating it for residential purposes. “The plan is to develop it either as a villa project or a residential colony for government institutions,” noted an official.

In November 2023, TCL had initially decided to sell its 2.79-acre property at Vazhakkala near Kakkanad in Ernakulam to overcome its financial difficulties. Despite multiple attempts, the land did not attract buyers. Eventually, a bidder won the tender with an offer of ₹23.07 crore. Legal complications, however, delayed the transaction and forced the company to cancel the tender.

In January 2026, following resolution of all legal issues, TCL issued a global re-tender for the land’s sale. Yet, the second round also failed to attract participants, leading the company to decide on developing the land for future use.

Meanwhile, TCL is also planning to initiate proceedings to sell its 1.81-acre plot in Chembu near Vaikom.

Despite the severe financial crisis, the company had resumed production and reinstated salary payments in June last year. However, operations faced another setback when the Employees Provident Fund Board froze the company’s bank accounts last week due to unpaid EPF contributions.

TCL currently employs 103 people, with a monthly salary outlay of ₹36 lakh, covering all staff from the chairman to temporary workers. Additionally, there are 120 retired employees, with gratuity liabilities amounting to ₹5 crore. Outstanding payments to contractors, including for the purchase of clinker, stand at ₹10 crore.

Established in 1946, TCL remained profitable until 2000 but was severely affected by the ban on dredging clams in Vembanad Lake, its primary raw material source.