Dalmia Bharat is planning to raise up to Rs 4,000 crore through various instruments to support its growth plans, as it targets to expand its manufacturing capacity to 110-130 million tonnes per annum by FY31 through a mix of acquisitions, greenfield and brownfield projects.
The country's fourth-largest cement maker, which currently has a significant presence across eastern, northeastern and southern India, plans to scale its cement manufacturing capacity from around 49.5 million tonnes per annum (MTPA) to 75 MTPA in the medium term, according to the company's latest annual report.
Dalmia Bharat remains optimistic about the cement industry's growth prospects and expects cement demand to expand at a compound annual growth rate (CAGR) of 6-7 per cent over the next few years, driven by government-led infrastructure spending, private-sector investments, and rising housing demand amid increasing urbanisation.
1 June 2026
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"This will create long-term volume-growth opportunity across regions. Our calibrated capacity expansion to 110-130 MTPA capacity by 2031 is strategically aligned with this demand growth outlook," said the company, outlining its ambitious expansion roadmap to strengthen its position in the domestic cement industry.
As part of its long-term growth strategy, the company aims to expand into geographies where it currently has limited or no presence, while simultaneously undertaking strategic capacity additions in existing markets to address demand gaps and increase market share.
"The company anticipates growth opportunities in its existing operations and continues to evaluate various avenues for organic expansion and inorganic growth. Towards this, the company continues to require capital for achieving such growth and expansion," it said.
To support its expansion plans, the company has proposed raising "for an aggregate amount not exceeding Rs 4,000 crore" through public or private offerings, including qualified institutional placements (QIPs), the company said in its agenda point for discussion and voting in the coming AGM.
The proposed fundraising, approved by the Board on May 23, 2026, may involve the issuance of equity shares, global depository receipts (GDRs), American depository receipts (ADRs), foreign currency convertible bonds (FCCBs), convertible debentures, preference shares and other eligible securities, it said.
The proceeds will be utilised towards "capital expenditure, the prepayment and/or repayment of debts" of the company and its subsidiaries, working capital requirements, investments in subsidiaries and general corporate purposes.
Currently, there are only two major cement players in India with a manufacturing capacity of over 100 MTPA.
The industry, which is witnessing consolidation through the inorganic route, is led by Aditya Birla Group firm UltraTech Cement with a consolidated capacity of 205.5 MTPA.
It is followed by Adani Group firm Ambuja Cements, which has a capacity of 109 MTPA.
Addressing the shareholders, Dalmia Bharat Managing Director and CEO Puneet Yadu Dalmia and Managing Director Gautam Dalmia said the company is aligning its growth strategy with India's long-term development ambitions and aims to emerge as a pan-India cement player.
"As part of our Phase II expansion plan, we announced strategic investments of over Rs 6,800 crore to enhance our cement capacity by 12 MTPA, through capacity additions at Belgaum, Pune and Kadapa," they said, adding Dalmia Bharat is also developing a bulk terminal near Chennai to strengthen its presence in North Tamil Nadu.
The cement maker recently signed an agreement to acquire cement assets of Jaiprakash Associates, including plants in Madhya Pradesh and Uttar Pradesh, for an enterprise value of Rs 2,850 crore, they added.
"This acquisition will provide faster access to central markets compared to a greenfield project and further offers expansion opportunity through debottlenecking, as well as a brownfield approach," said Dalmias.
The company reported its highest-ever annual EBITDA of Rs 3,083 crore in FY26, its revenue rose 6 per cent to Rs 14,804 crore and profit after tax jumped 65 per cent to Rs 1,157 crore. It expects its capacity to rise to 66.7 MTPA in FY28.
"Our expanding presence, combined with increasing production capacity to 66.7 MTPA by Q2-Q3 FY 2027-28 and continued emphasis on sustainable solutions, reflects our commitment to supporting Bharat’s infrastructure," they said.
Besides, Dalmia Bharat is also focusing on the premiumisation of its cement portfolio through innovation-led products. Its product strategy is centred on specialised Roof, Column and Foundation (RCF) solutions designed to enhance structural performance in construction applications.
The company is witnessing a shift towards blended and premium cement products, supported by increased utilisation of Portland Slag Cement (PSC) and advanced formulations, as it seeks to cater to evolving customer requirements and drive value-led growth.
