Dalmia Bharat Aims To Achieve Interim Capacity Of 75 Million Tonnes By FY27

Dalmia Bharat Ltd, a prominent player in the Indian cement industry, has set ambitious targets for expanding its cement production capacity over the next decade. The company aims to achieve an interim capacity of 75 million tonnes by FY27 and a long-term goal of 110-130 million tonnes by 2031. This growth trajectory will be facilitated through a strategic mix of greenfield projects, brownfield expansions, and strategic acquisitions across various regions.

Steady Progress and Expansion Plans

In FY24, Dalmia Bharat successfully augmented its cement capacity by six million tonnes in the Southern and Eastern regions of India. This expansion is part of the company's ongoing organic growth initiatives, which are progressing according to plan as highlighted in their latest annual report. Looking ahead to FY25, the company's key priorities include the timely completion of ongoing capital expenditures and the seamless integration of the recently acquired Jaypee Cement assets.

Strategic Investments and Acquisitions

To bolster its market presence and meet future demand, Dalmia Bharat has undertaken significant investment projects. Recently, the company completed a brownfield expansion of 1 million tonnes per annum (MTPA) in Ariyalur, Tamil Nadu, with an investment of ₹240 crore. Additional expansions include a new 1 MTPA capacity in Kadapa, along with plans to commission 2.4 MTPA in Assam and 0.5 MTPA in Bihar during FY25. Furthermore, the acquisition of cement assets from Jaiprakash Associates is underway, which will add 9.4 MTPA to its portfolio and facilitate entry into the Central region of India.

Projected Capacity and Regional Focus

By the end of the current fiscal year, Dalmia Bharat anticipates achieving a total installed capacity of approximately 58.9 MTPA through a combination of organic growth and strategic acquisitions. This expansion also includes a planned increase in clinker capacity, projected to rise from 22.6 MTPA in FY24 to 27.1 MTPA by FY26.

Focus on Northeast Expansion

Recognizing the burgeoning demand in the Eastern region, particularly in the northeast, Dalmia Bharat has allocated ₹3,858 crore for a substantial expansion initiative. This includes setting up a new clinkerisation unit with a capacity of 3.6 MTPA at its Umranghsu facility and establishing a 2.4 MTPA grinding unit at its Lanka facility, alongside expanding its existing clinkerisation unit at Lanka. These initiatives are strategically positioned to capitalize on the region's robust cement demand growth, solidifying Dalmia Bharat's foothold as a major player in the Eastern market.

With a clear roadmap towards achieving substantial capacity growth and strategic investments across diverse regions, the company is poised to capitalize on emerging opportunities in India's thriving cement industry.

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