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

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.)