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Dalmia Cement to invest Rs 1800 cr by FY14

Source : BUSINESS_STANDARD
Last Updated: Fri, Jan 18, 2013 20:21 hrs
A labourer carries a sack of Ultratech cement inside a shop in Agartala

Dalmia Cement (Bharat) Limited has chalked out investment plans to the tune of Rs 1800 crore for capacity expansion in Karnataka and North East following which the company's total capacity would be 21 million tonne (mt) per annum from the existing 17 mt.

The firm is setting up a greenfield unit in Karnataka's Belgaum district which would see an investment of Rs 1300 crore for a 2.5 mt capacity unit. In North East, it has two units where the capacity would be scaled up by 0.7 mt.

"After the recent set of acquisitions, we are now looking for organic growth. Our total capacity would be 21 mt per annum by March 2014," said Puneet Dalmia, CEO and managing director of Dalmia Cement. Once completed, this would boost the bottom line of the company by 10 per cent.

The firm which also owns 45.4% stake in OCL India Limited, will commission its new unit under OCL India by December 2013. "Construction work has started and the 1.3 mt capacity plant should be up and live by the end of current calendar year," said Dalmia.

The subsidiary of Dalmia Bharat Enterprises Ltd further plans to give more thrust on the retail business.

"Before the acquisition we were mostly into B2B business. Now we are looking to develop these acquired business and make it successful. This will enable us to give more thrust on the retail business," he added.

Dalmia indicated that the firm is aiming to enter the northern market but no concrete plans have been made yet.

The industry, according to him is likely to have a growth of 6 per cent to seven per cent this fiscal which can improve a bit in the next fiscal. "The infrastructure story has to deliver then we may attain a double digit growth," said Dalmia.




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