Dalmia Bharat Ltd announced INR90,000m capex spending

Dalmia Bharat Ltd has said that the government's continued focus on the infrastructure and housing sectors builds ‘optimism’ for the cement industry and the company has committed to a capex of over INR90,000m to expand its manufacturing capacity over the next few years to meet the growing demand.  

"Aligned with the government's vision of building a stronger India, we committed a capex of INR90,000m over the next few years. We are eyeing greenfield units and the debottlenecking of our existing plants to achieve our targeted capacity addition," said Dalmia Bharat.

Dalmia Bharat has a cement production capacity of 35.9Mta and aims to achieve a production capacity of 48.5Mta in FY24. Over the next decade, it expects to expand capacity to about 110-130Mta.

"As a step forward towards our vision of achieving 48.5Mta capacity by 2024 and 130Mta capacity by 2030, we have committed INR19,880m towards capex during this year," it said. 

Presently, it has the country's fourth-largest cement manufacturing capacity with a strong presence in southern and eastern India as well as aggressively expanding its footprint across the rest of the country. 

"Our aim is to be a pan-India cement manufacturer, with a 130Mta cement manufacturing capacity by 2030," it said.

Dalmia Bharat Managing Directors, Gautam Dalmia and Puneet Dalmia, said the Indian economy is rapidly recovering from the upheaval caused by the pandemic. It is estimated to grow quickly as core infrastructure sectors expanded by 10.4 per cent in FY22. 

"The growth momentum is likely to pick up further, with the increase in rural and urban housing activities, a commercial real estate boom and a massive government impetus to infrastructure.

"This presents opportunities for a favourable macro-economic environment for the sector and we, at Dalmia Bharat, are well-positioned to capitalise on this, owing to our strong presence in the highly attractive growth markets in the east, northeast and southern India, along with our recent entry into west India," said Gautam and Puneet Dalmia.