Dalmia Bharat's Bold Expansion & Pricing Strategy: Cement Industry Insights

Dalmia Bharat projects significant growth and consolidation in the cement sector, expecting over 60% capacity share for top companies in two years. They anticipate demand recovery driven by housing and infrastructure, and are investing Rs 3,520 crore to expand, aiming to cut costs with renewable energy and digital strategies.

Sector consolidation in the cement industry is set to intensify as major players, including Dalmia Bharat, aim to capture over 60% capacity share in the next two years. Dalmia Bharat leadership foresees cement demand growth rebounding to 7-8% by FY26, after a recent slowdown.

Dalmia Bharat is planning an aggressive expansion, targeting 75 MTPA capacity by FY28, with a long-term goal of reaching up to 130 MTPA. This growth will be achieved through a mix of organic and inorganic strategies, supported by significant investments including Rs 3,520 crore in Pune and Belgaum.

Despite facing pricing challenges, Dalmia Bharat remains optimistic. Prices showed a year-on-year decline, impacting revenues, but the company is leveraging renewable energy and digital supply chain optimizations to cut costs by Rs 150-200 per tonne, projecting efficiency improvements in the coming fiscal year.

(With inputs from agencies.)