Dalmia Bharat announced plans to invest ₹3,520 crore to expand cement capacity by 6 million tonnes annually in Maharashtra and Karnataka.
New units to serve Western India’s infrastructure growth
The expansion includes a 3.6-million-tonne clinker unit and a 3-million-tonne grinding unit at the existing Belgaum plant in Karnataka. A separate 3-million-tonne greenfield split grinding unit will be built in Pune, Maharashtra. Both projects are set to start production by the fourth quarter of fiscal 2027.
When finished, the company’s total installed capacity will reach 55.5 million tonnes per annum, including ongoing projects in Assam and Bihar. The new units aim to supply underserved markets in southern Maharashtra and strengthen presence in Karnataka while establishing a base in western Maharashtra.
Demand drivers and funding
Maharashtra’s infrastructure projects, urban growth, and industrial activity have increased cement demand. The state represented about 14% of India’s total cement consumption last year.
The ₹3,520 crore investment will be funded through debt and internal accruals. While the exact debt-equity ratio remains undisclosed, analysts note the company’s leverage stays below the sector average.
Managing director and CEO Puneet Dalmia described the expansion as a “key part of our Phase II strategy,” highlighting the goal of meeting rising infrastructure demand in the region.
Dalmia Bharat has expanded through both new projects and acquisitions. In 2022, it bought Jaiprakash Associates’ cement assets in central India, adding 9.4 million tonnes of capacity. The company now runs 14 plants across 10 states.
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The latest investment targets areas where demand is expected to exceed supply. Western Maharashtra, in particular, has seen increased road and metro projects, leaving a gap local producers have struggled to fill.
The new facilities will create local jobs and support construction activity in both states. The company plans to use energy-efficient processes to lower production costs and reduce carbon emissions.
This approach matches broader industry trends, though no specific emissions target has been set for the new units. Existing plants already incorporate alternative fuels and waste heat recovery systems to cut energy use.
With the expansion, the company will solidify its position in high-growth markets, aligning with India’s infrastructure development. The move reflects a wider industry trend as cement producers rush to add capacity ahead of expected demand.
Analysts predict a wave of new capacity over the next two years, which may ease supply constraints in key regions. Whether demand will keep up remains uncertain, but for now, the company is focusing on Western India.
Similar trends are visible in other sectors, where lavish homes reflect growing economic confidence.
