Dalmia Cement Increases Production at Kadapa Unit to 3.6MTPA

Dalmia Cement (Bharat) Limited expands its production capacity with the commencement of operations at a new 1.0 MTPA cement mill in Kadapa, Andhra Pradesh.

by Damodharan N

Updated Jul 08, 2024

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Dalmia Cement Increases Production at Kadapa Unit to 3.6MTPA

Dalmia Cement (Bharat) Limited has announced a significant expansion in its cement production capacity with the commencement of commercial operations at a new 1.0 MTPA cement mill in Kadapa, Andhra Pradesh. Dalmia expands Kadapa cement unit to 3.6MTPA.

This addition boosts the company's total manufacturing capacity to 46.6 MTPA, up from the previous 45.6 MTPA. The new unit, which began production on July 3, 2024, represents an investment of Rs. 207 crores, financed through a combination of debt and equity.

The decision to expand was driven by the growing demand in the southern region's cement market, aiming to capitalize on the region's infrastructure projects and real estate developments.

As of June 30, 2024, the company's overall capacity utilization stood at 63%, indicating potential for increased output to meet market demands. This strategic move positions Dalmia Cement to strengthen its market presence and enhance its competitive edge in the cement industry.

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Dalmia Bharat Limited

Founded in 1939 by Shri Jaidayal Dalmia, Dalmia Bharat Group has emerged as a leader in sectors such as Cement and Sugar over its more than 80-year history. Known for its commitment to sustainability, the group has achieved the lowest carbon footprint globally in the cement sector and maintains high efficiency standards.

Beyond cement and sugar, the group divested its refractory business in a significant transaction, highlighting strategic focus and financial prudence. With a robust growth trajectory, Dalmia Bharat Group recorded a CAGR of 17% in sales over the last decade, surpassing ₹16,500 Cr in FY23.

Dalmia Cement Increases Production at Kadapa Unit - FAQs

1. What is the new production capacity added by Dalmia Cement (Bharat) Limited?    

Dalmia Cement has added 1.0 million tonnes per annum (MTPA) to its production capacity.

2. Where is the new cement mill located?  

The new cement mill is installed at the existing plant of Dalmia Cement in Kadapa, Andhra Pradesh.

3. What is the total cement manufacturing capacity of Dalmia Cement (Bharat) Limited after the recent addition?  

The total manufacturing capacity now stands at 46.6 MTPA.

4. When did the commercial production of the new capacity begin?  

Commercial production started on July 3, 2024.

5. How much investment was required for this capacity addition?  

The investment required was Rs. 207 crores.

6. How is the investment financed?  

It is financed through a mix of debt and equity.

7. What was the existing capacity before this addition?  

The existing capacity was 45.6 MTPA.

8. What is the current utilization of Dalmia Cement's manufacturing capacity?  

As of June 30, 2024, the capacity utilization was 63%.

9. What is the rationale behind adding this new capacity?  

The expansion aims to meet the growing demand in the southern region's cement market.

10. Where is Dalmia Bharat Limited headquartered?  

The headquarters of Dalmia Bharat Limited is located in New Delhi, with the registered office in Dalmiapuram, Tamil Nadu.

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