Dalmia Bharat to Expand Cement Capacity with ₹3,520 Crore Investment

Dalmia Bharat has announced an investment of ₹3,520 crore to expand its cement production capacity in Maharashtra and Karnataka. The expansion, adding 6 million tonnes per annum (MTPA), is aimed at meeting the increasing infrastructure demand in Western India. This investment aligns with the company’s long-term growth strategy and will be funded through a combination of debt and internal accruals.

The company plans to establish a 3.6 MTPA clinker unit and a 3 MTPA grinding unit at its existing plant in Belgaum, Karnataka. Additionally, a new greenfield split grinding unit with a capacity of 3 MTPA will be set up in Pune, Maharashtra. These units are expected to be commissioned by the fourth quarter of FY27.

With this expansion, Dalmia Bharat’s total installed cement capacity will reach 55.5 MTPA, factoring in its ongoing projects in Assam and Bihar. The addition of these new units will strengthen the company’s presence in key markets while enhancing production efficiency.

The expansion is designed to cater to both existing and new markets. The Belgaum grinding unit will improve supply to the underserved markets of southern Maharashtra while increasing penetration in Karnataka. Meanwhile, the Pune grinding unit will help the company establish a presence in the western Maharashtra region, which has remained largely untapped.

Dalmia Bharat’s focus on these markets aligns with the growing infrastructure needs of the region. Maharashtra, in particular, has seen increasing demand for cement due to large-scale infrastructure projects, urban expansion, and industrial development. The company’s decision to expand its capacity in these locations reflects its strategy to position itself in high-growth areas.

According to Puneet Dalmia, Managing Director & CEO of Dalmia Bharat Limited, this investment is a key part of the company’s Phase II expansion strategy. He emphasized that increasing production capacity will help the company meet the rising demand from infrastructure projects in Western India.

Dalmia Bharat has been consistently expanding its footprint in the cement sector through both organic growth and acquisitions. The company is working toward achieving a balanced supply chain across regions, ensuring a steady supply of cement to support India’s infrastructure growth.

The new facilities will contribute to the economic growth of Maharashtra and Karnataka by supporting construction projects and generating employment opportunities. The company’s investment in energy-efficient manufacturing processes will also help optimize production costs while ensuring environmental sustainability.

By strategically expanding in high-demand regions, Dalmia Bharat aims to strengthen its market position and support India’s ongoing infrastructure initiatives. The company’s continued focus on capacity expansion and market penetration reflects its long-term vision for growth in the cement sector.