Cement producers Dalmia Group on acquisition spree for growth

Dalmia Bharat Group, one of the oldest cement producers in the country, may hit more than 40 million tonne per annum (MTPA) mark in capacity.

Published: 14th July 2018 02:13 AM  |   Last Updated: 14th July 2018 06:35 AM   |  A+A-

Labourers stand after unloading cement bags from a freight train at Ghaziabad railway station. Image used for representational purpose only. (Photo | Reuters)

By Express News Service

BHUBANESWAR: With three acquisitions underway, Dalmia Bharat Group, one of the oldest cement producers in the country, may hit more than 40 million tonne per annum (MTPA) mark in capacity, up from the current 26 MTPA.

The firm has recently snapped up two distressed companies in the insolvency process - Murli Industries and Kalyanpur. With these acquisitions, its capacity will increase to 29.1 million tonnes. In addition, if the Binani Cements deal goes in Dalmia’s favour, this capacity catapults to 40 MTPA in India. Moreover, the company is aggressively allocating capital to strengthen its position in the existing markets even as it is enters new markets for growth and diversification.

It has launched Dalmia FBC Cement to enhance its brand portfolio in the eastern markets.

“This cement captures the best of both PSC (Portland Slag Cement) and PPC (Portland Pozzolana Cement) and its superior blend ensures more volume per bag. With this launch, we expect more cement bags to roll out on traction in infrastructure and low-cost housing segments,” said Indrajit Chatterji, Executive Director (Sales & Marketing-East) of the company.

On the demand and expected growth of the cement industry, Chatterji said, “We expect that growth in the affordable housing and infrastructure will maintain a demand growth momentum of around 5 per cent in FY19. This is backed by low-cost housing in the eastern markets, Andhra Pradesh, Telangana and the infrastructure demand from the eastern, southern and western markets.” 

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