Dalmia Bharat begins ₹3,100 crore cement expansion in Kadapa, Andhra Pradesh

Andhra Pradesh has taken another major step towards strengthening its industrial base with Dalmia Bharat Cement commencing work on its ₹3,100 crore Line-2 expansion project at Chinnakomerla village in Mylavaram Mandal of Kadapa district.

The foundation stone for the expansion was laid by Andhra Pradesh Education and IT Minister Nara Lokesh, who described the investment as a reflection of growing investor confidence in the state’s business-friendly policies and industrial ecosystem.

The expansion project is scheduled for completion by the third quarter of FY2028 and is expected to transform the Kadapa facility into Dalmia Bharat’s largest integrated cement manufacturing complex in southern India.

Once operational, the project will substantially increase clinker production capacity from 2.5 million tonnes per annum (MTPA) to 6.1 MTPA. Cement production capacity will also rise sharply from 3.6 MTPA to 9.6 MTPA, strengthening the company’s presence in one of India’s fastest-growing construction markets.

The investment is expected to create more than 1,000 direct and indirect employment opportunities while generating additional business for transport operators, contractors, suppliers and micro, small and medium enterprises across the Rayalaseema region.

Speaking during the ceremony, Nara Lokesh said the expansion demonstrates that companies are willing to reinvest when they experience a stable policy environment, efficient governance and faster project execution. He added that the state government remains committed to attracting large-scale manufacturing investments that generate employment and strengthen the regional economy.

The project has also been designed with sustainability as a key priority. The expanded facility will operate using more than 80% renewable energy and incorporate Waste Heat Recovery Systems, Zero Liquid Discharge technology, water recycling facilities and artificial intelligence-based energy management systems to improve operational efficiency while reducing environmental impact.

The latest investment further reinforces Andhra Pradesh’s position as an emerging manufacturing destination. With abundant limestone reserves, strong logistics connectivity and proactive industrial policies, the state continues to attract significant investments across cement, steel, renewable energy and advanced manufacturing sectors.

As infrastructure development accelerates across India, projects such as Dalmia Bharat’s Kadapa expansion are expected to play an important role in meeting rising cement demand while supporting employment generation and long-term industrial growth.