Dalmia Bharat Group has announced an investment of INR20bn (US$2.9m) to expand the capacity of its cement plant in Odisha. Group company Dalmia Cement Bharat Ltd has 74.6 stakes in OCL India, a leading cement maker with the largest market share in Odisha.
Mahendra Singhi, Group CEO, Dalmia Bharat Group, said: "Odisha is a currently on a high economic growth trajectory and its GDP is expected to grow at around 12 per cent by 2020. The state government's commitment to industrial development backed by industry-friendly policies has already started showing positive results. Odisha has always been our home soil and our business relationship with the state has matured over the years. The state’s zeal to grow further thus compels us to partner its next leap of growth."
OCL India Ltd with a total installed capacity of 5.4Mta distributed between its two manufacturing units in Odisha.
"Good governance and stable political leadership have been one of the prime factors that have helped investors show faith in investment in the State, said Amandeep Singh, director & CEO, OCL India Ltd. "Additionally, there has been a growing improvement in business sentiment across sectors in Odisha due to investor friendly policies. The concept of a Smart City will get a boost if the government focuses more on road and power infrastructure. With government’s focus on affordable housing and Smart cities, cement can expect incremental growth in demand over the next five years."
Cement demand in India is expected to increase due to the government push for large infrastructure projects, leading to 45Mt of cement needed in the next three to four years. India's cement demand is expected to reach 550-600Mta by 2025. To meet the rise in demand, the cement industry is expected to add about 56Mt capacity over the next three years.
