Dalmia Bharat Limited has informed the Exchange about Capacity addition
DALBHARAT · price
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Dalmia Bharat's subsidiary Dalmia Cement (Bharat) Ltd (DCBL) has approved a major capacity expansion at its Kadapa plant. The addition includes 3.6 MnT of clinker capacity and 6.0 MnT of cement capacity at Kadapa, along with a 3.0 MnT bulk terminal at Chennai. Total investment is Rs. 3,287 crore, to be funded through debt and internal accruals, with completion targeted by Q2 FY28. Post-expansion, DCBL's cement capacity will rise to 61.5 MnT and clinker capacity to 34.3 MnT. The expansion is driven by high utilization at the existing Kadapa unit and aims to capture underserved markets in Northern Tamil Nadu, Andhra Pradesh, and Southern Karnataka.
Positive long-term signal — the expansion strengthens Dalmia's market position in southern and coastal regions, though the Rs. 3,287 Cr capex (a large chunk of net worth) could pressure near-term returns and leverage ratios until the new capacity starts contributing revenue from FY29.