Dalmia Bharat Commits ₹3,287 Crore to Expand Clinker and Cement Capacity in Andhra Pradesh

Dalmia Cement (Bharat) Ltd, a subsidiary of Dalmia Bharat Ltd, has announced a strategic investment of ₹3,287 crore to set up a 3.6 million tonnes per annum (MTPA) clinker unit and a 6 MTPA grinding unit at its Kadapa plant in Andhra Pradesh. The expansion aims to meet rising regional demand and reinforce the company’s long-term growth strategy.

 

Key Highlights:

 

The new clinker and grinding units will be commissioned by Q2 FY28, enhancing operational scale and efficiency.

 

Kadapa’s existing plant is already operating at high utilization levels, prompting the need for capacity augmentation.

 

A 3 MTPA bulk terminal will also be established in Chennai to support logistics and distribution.

 

Operational Context:

 

The expansion follows a similar 6 MTPA capacity addition announced earlier at Belgaum, Karnataka, and Pune, Maharashtra.

 

Dalmia Bharat’s total cement capacity is projected to reach 75 MTPA by FY28 and 110–130 MTPA by FY31.

 

The company’s EBITDA surged 32 percent YoY to ₹883 crore in Q1 FY26, its highest ever, with margins expanding to 24.3 percent.

 

Strategic Outlook:

 

The investment aligns with Dalmia Bharat’s Phase II expansion strategy and pan-India ambitions.

 

Renewable energy consumption reached 41.2 percent, with 294 MW operational capacity, supporting sustainability goals.

 

Analysts expect the new capacity to drive volume growth and margin resilience amid infrastructure-led demand.

 

Sources: CNBC TV18, The Hindu BusinessLine, Business Standard (July 2025)