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Dalmia Cement’s two-year investment plan

World Cement,

Dalmia Cement (Bharat) has recently announced an Rs.1800 crore investment plan with a view to increasing production capacities over the coming two years. The plan should extend to a capacity increase of around 4 million tpa, taking the company’s overall cement production capacity to 21 million tpa. The move will also help strengthen the company's presence both nationally and in the northeast of India. It is also worth noting that Dalmia has recently deal with Focus to produce a complete integrated brand and communication strategy. With the northeast forming a particular target for this strategy, the company is showing a serious drive towards a growth and the maximisation of its new capacity.

The largest portion of the investment will be allocated to the establishment of a 2.5 million tpa greenfield plant at Belgaum, Karnataka. It is projected that this will run to around Rs.1300 crore, with the remaining Rs.500 crore going towards the scaling up of the company’s two plants in the northeastern region.

Dalmia’s CEO and chairman, Puneet Dalmia, said that he expected the entirety of the new capacity would be online by march 2014 and that the expansions would boost the company's bottom line by 10%. He added that the new plant, which is being built under the name of Dalmia’s part-owned subsidiary, OCL India, is already under construction and should be completed by the end of the calendar year.

The company has also implied that it is planning to enter the Northern market, but nothing has been finalised to this end as yet.

Written, based on various sources, by Jack Davidson.

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