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Dalmia Cement plans pan-Indian expansion

World Cement,

In India, Dalmia Cement (Bharat) Ltd has announced it is in the advanced stages of commissioning its new 2.5 million tpa greenfield plant in north Karnataka. The plant, which has taken a Rs.1300 crore investment, is set to be complete in February 2014 and will cater to markets in Maharashtra and Goa.

The company plans to expand further across India, having initially been predominantly south-India based. The company’s CEO, Vipin Agarwal, told press that the company plans to add 3 million t capacity in the next fiscal, taking the company’s total capacity to 21 million t and, later, will add a second plant of 2.5 million t in north Karnataka.

Karnataka is an important state to the company. “Though we have had a good presence in Tamil Nadu and Kerala, Karnataka has not been a great market for us so far. We have to address this state seriously by ramping up our presence here,” Agarwal told press, adding that the company hopes to increase its 5% market share to double digits in a few months time. Karnataka has received a high degree of foreign direct investment (FDI) in recent years, accounting for 6% of total FDI to India in 2002 – 2012. The services and agriculture sectors are performing especially well, which bodes well for the cement industry there.

Edited from various sources by Katherine Guenioui

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