Dalmia Bharat to Boost Capacity with Major Expansions

Dalmia Bharat, one of India’s leading cement manufacturers, has outlined ambitious plans for capacity expansion, aiming to reach an interim target of 75 million tonnes by FY27 and a long-term goal of 110-130 million tonnes by 2031. These expansion plans encompass a combination of greenfield, brownfield, and inorganic growth initiatives, reflecting the company’s commitment to significantly enhancing its production capabilities.

In a recent development, Dalmia Bharat commissioned a one million tonne per annum (MTPA) brownfield expansion project in Ariyalur, Tamil Nadu. This project, completed with an investment of Rs 240 crore, underscores the company’s strategy to bolster its presence in the southern region of India. Additionally, in Kadapa, the company is set to add another 1 MTPA of new capacity, further strengthening its foothold in the South.

Looking ahead to FY25, Dalmia Bharat is preparing to commission additional capacities in other regions. This includes a 2.4 MTPA cement plant in Assam and a 0.5 MTPA unit in Bihar. These new installations are part of the company’s broader strategy to enhance its geographic footprint and cater to the rising demand for cement across different parts of the country.

In a significant move to boost its production capacity, Dalmia Bharat is also pursuing the acquisition of cement assets from Jaiprakash Associates. This acquisition is expected to provide an additional 9.4 MTPA capacity, substantially augmenting the company’s overall production capabilities by the end of the current financial year. With this acquisition, Dalmia Bharat’s total capacity is projected to reach approximately 58.9 MTPA.

The expansion is not limited to cement production alone; Dalmia Bharat is also increasing its clinker capacity. The company plans to enhance its clinker capacity from 22.6 MTPA in FY24 to 27.1 MTPA by FY26. This increase in clinker capacity is crucial for supporting the anticipated growth in cement production and ensuring a steady supply of clinker for the company’s expanding network of cement plants.

Further reinforcing its growth strategy, Dalmia Bharat has embarked on a significant capacity expansion initiative in the Northeast. This project involves an investment of Rs 3,858 crore and includes the establishment of a new clinkerisation unit with a 3.6 MTPA capacity. Additionally, the company is setting up a cement grinding unit in Umranghsu with a 2.4 MTPA capacity and expanding the existing clinkerisation unit at Lanka. These developments are expected to substantially increase the company’s production capacity in the Northeast, a region with growing demand for cement.

As of May 31, 2024, Dalmia Bharat’s total installed capacity stood at 45.6 million tonnes. The company’s ongoing and planned expansions are poised to elevate its production capabilities, enabling it to meet the rising demand for cement in India and maintain its competitive edge in the market. These strategic initiatives reflect Dalmia Bharat’s commitment to growth and its vision of becoming a leading player in the global cement industry.

The company’s comprehensive expansion strategy, encompassing acquisitions, greenfield and brownfield projects, and significant investments in new and existing units, underscores its focus on sustainable growth and operational excellence. By continually enhancing its capacity and expanding its geographic reach, Dalmia Bharat is well-positioned to capitalize on the opportunities in the burgeoning Indian cement market and beyond.