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Dalmia Cement to invest Rs 3,287 cr for capacity expansion

Dalmia Cement Bharat Ltd (DCBL) has received the approval from its board to scale up its cement and clinker capacity by 9.6 million tons (mt) with an investment of Rs 3,287 crore, according to a BSE filing.

“In 2025, we have announced fresh capital investments of about Rs 6,800 crore for adding 12 million tons per annum (ntpa) of cement capacity across the South and West regions. Our balance sheet remains strong to support this growth as we further prepare for next leg of expansion in the new regions,” said Puneet Dalmia, Managing Director & CEO – Dalmia Bharat Limited.

The cement arm of Dalmia Bharat is looking to expand its clinker capacity by 3.6 mt and cement capacity by 6 mt at its Kadapa unit. The financing of investment will come from debt and internal accruals.

The capacity addition has been proposed to be added before Q2 of FY28. Once implemented, DCBL and its subsidiaries will have a cement capacity of 61.5 mt and clinker capacity of 34.3 mt.

“Existing Capacity of 3.6 million tons per annum (mtpa) at Kadapa already is operating at high utilization levels. This addition will help us to expand into the underserved markets of Northern Tamil Nadu, and to strengthen our presence in Andhra Pradesh and Southern Karnataka markets,” the company said in the filing.

At present, Dalmia Cement has been utilizing around 58 percent of its capacity, which is at 49.5 mt.