Dalmia Cement plans to open two new cement plants in Meghalaya and Karnataka, India. The plants, which are estimated to begin functioning in around two years time, will each produce up to 2.5 million tpa.
At present, Dalmia Cement, in association with OCL India, has an overall cement production capacity of 14.3 million tpa, with cement plants in Tamil Nadu and Andhra Pradesh. According to local reports, the company aims to increase its presence in various regions within the country in order to become a pan-Indian operator. Mr T. Venkatesan, Deputy Managing Director at Dalmia Cement, has stated that the company’s plans for expansion are now due to gather speed. The new plants form part of this expansion initiative, marking the company’s move into the north-east of India.
India has seemingly witnessed a slowdown in construction projects as it suffers a knock-on effect from the increasing cost of capital in the region, problems concerning land acquisition, as well as the impact of low raw material availability on the manufacturing industry. Despite a predicted decline in utilisation rates, it has been reported that cement demand is set to increase by 4.5% in FY12E, compared to 4.4% in FY11. Furthermore, the average cement price increased by Rs.18 per bag in November, as prices rose in the northern and eastern regions whilst remaining constant in the central, west and south of India.