The Business Bytes
THEBUSINESSBYTES BUREAU
NEW DELHI, FEBRUARY 28, 2025
Dalmia Bharat Limited, one of India’s leading cement manufacturers, has announced a major investment of ₹3,520 crore to enhance its production capacity in Maharashtra and Karnataka. This strategic expansion, undertaken through its subsidiaries, includes the establishment of a 3.6 MnTPA clinker unit and a 3 MnTPA grinding unit at its existing Belgaum plant in Karnataka, along with the development of a new greenfield split grinding unit with a capacity of 3 MnTPA in Pune, Maharashtra. The investment will be financed through a mix of debt and internal accruals, with the new units expected to be commissioned by the fourth quarter of FY27.
With this expansion, Dalmia Bharat’s total installed cement capacity will rise to 55.5 MnTPA, factoring in the company’s ongoing 2.9 MnTPA capacity addition in Assam and Bihar. This move aligns with the company’s long-term vision to achieve a nationwide presence, targeting 75 MnTPA capacity by FY28 and an ambitious 110-130 MnTPA by 2031.
The Belgaum Grinding Unit is strategically positioned to strengthen the company’s foothold in the underpenetrated Southern Maharashtra market, while also reinforcing its existing presence in Karnataka. Simultaneously, the Pune Grinding Unit will enable Dalmia Bharat to tap into the Western Maharashtra market, which has remained largely untapped until now.
Commenting on the development, Puneet Dalmia, Managing Director & CEO, Dalmia Bharat Limited, stated, “This investment marks a significant milestone in our Phase II expansion strategy, bringing us closer to solidifying our position as a pan-India player and achieving our interim goal of 75 MnTPA by FY28. The increase in production capacity is aimed at meeting the growing infrastructure demand in Western India.” He further emphasized the company’s commitment to operational excellence and long-term value creation, stating, “Our capacity expansions remain aligned with our sustainability-driven approach, ensuring that we continue to support India’s infrastructure and development goals while maintaining our leadership in the cement sector.”
Dalmia Bharat’s expansion comes at a crucial time when India’s construction and infrastructure sectors are witnessing significant growth, particularly in Western and Southern India. By enhancing its production capacity in key regions, the company is well-positioned to meet the rising demand and reinforce its standing as a formidable player in the cement industry.
