Dalmia Bharat to Invest ₹32.87 Billion to Expand South Capacity

Dalmia Bharat Ltd. has approved a capital expenditure of ₹32.87 billion to expand its cement and clinker capacities in Andhra Pradesh and Tamil Nadu, the company said Tuesday.

The expansion will raise its total cement capacity to 61.50 million tonnes per annum by the September quarter of 2027–28, up from 49.50 million tonnes at the end of 2025–26. The company also aims to scale this to 75 million tonnes by the end of 2027–28.

Under the plan, Dalmia Bharat will add 3 million tonnes of cement capacity at its Kadapa plant in Andhra Pradesh and set up a 3-million-tonne bulk terminal in Chennai. Clinker capacity at Kadapa will also increase by 3.6 million tonnes.

“This addition will help us expand into the underserved markets of northern Tamil Nadu and strengthen our presence in Andhra Pradesh and southern Karnataka,” the company said in a filing.

The rest of its cement expansion targets for 2026–27 remain unchanged, including 3 million tonnes at Belgaum in Karnataka and a new 3-million-tonne plant in Pune, Maharashtra, taking projected cement capacity for that year to 55.50 million tonnes.

Meanwhile, the company has raised its clinker capacity guidance for 2026–27 to 34.30 million tonnes from 30.70 million tonnes, with the increase focused entirely on the southern region.