Dalmia Bharat Fuels Growth with Rs 3,287 Cr Capacity Boost

Hey there, finance enthusiasts! 👋 Big news from the cement world as Dalmia Bharat Limited is gearing up for a significant expansion that could really shake things up in the industry.

The company’s wholly-owned subsidiary, Dalmia Cement (Bharat) Limited (DCBL), just got the green light from its Board of Directors for a substantial capacity addition. We’re talking about a hefty investment of Rs 3,287 Crore! 💰

So, what’s on the cards? DCBL is set to boost its capabilities at Kadapa with an additional 3.6 MnT of Clinker Capacity and a whopping 6.0 MnT of Cement Capacity. Plus, to streamline logistics, they’re also adding a 3.0 MnT Bulk Terminal Capacity at Chennai. Talk about a comprehensive plan!

This isn’t just a small tweak; it’s a major leap. Once these expansions are fully implemented, Dalmia Cement (Bharat) Limited and its subsidiaries will boast a total Cement Capacity of 61.5 MnT and a Clinker Capacity of 34.3 MnT. That’s a serious increase from their current installed cement capacity of 49.5 MnT, which is currently operating at about 58% utilization.

When can we expect to see these new capacities up and running? The company aims to have everything in place on or before Q2 of Financial Year 2028. The funding for this ambitious project will come from a mix of debt and internal accruals.

Why this big push now? Well, their existing 3.6 MnTPA capacity at Kadapa is already running at high utilization levels. This expansion is strategically designed to help Dalmia Bharat penetrate the underserved markets of Northern Tamil Nadu and significantly strengthen its presence in the key regions of Andhra Pradesh and Southern Karnataka. It’s all about meeting growing demand and cementing their position in the market! 💪

Keep an eye on Dalmia Bharat as they build out their future, literally!

source: Corporate Announcement

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