Dalmia Bharat Ltd, has said, it remains committed, to reaching an interim capacity target of 75 million tonnes, by FY27, and a long-term goal of 110-130 million tonnes, by 2031. This will be accomplished, through a combination of greenfield, brownfield, and inorganic growth initiatives.
“In FY24, we added six million tonnes of cement capacity in the South, and East regions. Our organic expansion plans are also progressing well,” stated the management of Dalmia Bharat, in the latest annual report.
For FY25, the company’s key priorities include, completing ongoing capital expenditures, on schedule, and effectively integrating the Jaypee Cement asset. By 2031, Dalmia Bharat, aims to become a pure-play, pan-India cement manufacturer, with a capacity between 110-130 million tonnes.
Recently, the company commissioned a 1 MTPA (million tonnes per annum), brownfield expansion in Ariyalur, Tamil Nadu, with an investment of ₹240 crore, further strengthening its presence in the South region. Kadapa, will also add 1 MTPA new capacity. The company’s total installed capacity, was 45.6 million tonnes, as of May 31, 2024.
The company is also set to commission a 2.4 MTPA cement capacity in Assam, and a 0.5 MTPA unit in Bihar, in FY25. Furthermore, it is pursuing the acquisition of cement assets from Jaiprakash Associates, which will mark its entry into the Central region, and provide an additional 9.4 MTPA capacity.
By the end of this fiscal year, Dalmia Bharat’s total capacity, through both organic, and inorganic growth, is projected to reach about 58.9 MTPA. This expansion, will be supported by increased clinker capacity, from 22.6 MTPA in FY24, to 27.1 MTPA, by FY26.
The Group, has also embarked on a significant capacity expansion, with an investment of ₹3,858 crore, in the northeast. The eastern region, including the northeast, has become increasingly attractive, to cement producers, due to the highest growth in cement demand, in recent years. Dalmia Bharat, has emerged as a dominant player in this market, accounting for one-fifth of the total cement capacity, in the region.
The ₹3,858 crore Northeast expansion, includes establishing a new clinkerisation unit, with a 3.6 million tonnes per annum (MTPA) capacity, at its Umranghsu unit, a new cement grinding unit, with a 2.4 MTPA capacity, at its Lanka unit, and expanding the existing clinkerisation unit at Lanka. The new 2.4 MTPA grinding unit, is expected to be commissioned during this fiscal, while the new clinkerisation unit, is anticipated to go online in FY26.