Dalmia Bharat Cement Ltd., subsidiary of Dalmia Bharat Ltd., is in the process of investing Rs. 9,000 crore, for expanding its cement production capacity to 48.4 MTPA by the end of FY 2024. Dalmia Bharat’s current cement production capacity sits at 35.9 MTPA.
The company plans to achieve this target through greenfield and brownfield projects, along with upgradation and de-bottlenecking of their existing establishments.
Dalmia Bharat’s Project Plan for Enhancing Cement Capacity
According to Puneet Dalmia, the Managing Director of Dalmia Bharat, this addition of 12.5 MTPA shall be done through:
- Ongoing project of 2.5 MTPA capacity
- 3 MTPA greenfield project in Tamil Nadu
- 1.7 MTPA brownfield project in Jharkhand
- Upgradation and de-bottlenecking of existing Dalmia Bharat establishments to add another 5.3 MTPA to the total production capacity.
For greenfield, the company has finalised land in Tamil Nadu’s Chennai and Tuticorin to set up two grinding units.
Dalmia Bharat’s 1.7 MTPA brownfield project that shall contribute to this expansion is planned in Bokaro, Jharkhand. At present the existing capacity of the Bokaro project is 3.7 MTPA. Earlier in August 2021, Dalmia Bharat had planned to set up a new grinding unit, which shall take the overall cement manufacturing capacity at Bokaro to 6.3 MTPA.
Finally, the company plans to add 5.3 MTPA capacity by upgradation of its existing projects and carrying out de-bottlenecking processes. It plans to add 1.2, 1, 0.9 and 2.1 MTPA to the annual production capacity in the North-East, West, South and East regions respectively.
Dalmia Cement’s Expansion Apropos of Indian Cement Industry’s Future
The company’s current expansion, once complete, will help Dalmia Bharat achieve 40% of its long-term target of attaining a total production capacity of 110-130 MTPA by 2031. As per an India Brand Equity Foundation (IBEF) report, India’s total cement production capacity is projected to reach 550-600 MTPA by 2025. This estimate is based on increasing demand for cement from housing and construction sectors.
About Dalmia Cement Bharat Limited: Dalmia Bharat Cement Limited is a subsidiary of Dalmia Bharat Limited, and was established in 1939. Headquartered in Delhi, the company has thirteen manufacturing units spread across nine states, making it the fourth-largest cement manufacturing group in India in terms of installed capacity.