Dalmia Bharat to Invest Rs 10 Bn in Capex During Q4
Cement

Dalmia Bharat to Invest Rs 10 Bn in Capex During Q4

Dalmia Bharat plans to invest approximately Rs 10 billion in capital expenditure for the quarter ending in March, bringing its total expenditure for the current fiscal year to around Rs 30 billion.

As for the fiscal year 2025-26 (April-March), the company intends to spend between Rs 25 billion and Rs 30 billion on capital expenditure. Dalmia Bharat's current annual production capacity is 46.6 million tonnes, which is set to increase to 49.5 million tonnes by the end of March.

India, being the second-largest cement producer globally, has seen domestic players aggressively expand capacities through both expansion and acquisitions to meet the anticipated demand driven by the government's infrastructure push. It is projected that between 2024 and 2028, 150-160 million tonnes of capacity will be added, driven by a combination of organic and inorganic growth. This increase in supply, coupled with heightened competition, is expected to limit the growth of cement prices, as noted in a Crisil report from last year.

Dalmia also mentioned that while optimism surrounding cement prices has risen due to recent price recoveries, the intensifying competition may prevent any substantial price increases. He noted that the current market conditions are marked by aggressive market share pursuits, which, coupled with the lack of demand growth in the first nine months, have added strain to the industry. He pointed out that every industry goes through phases where the focus shifts from market share to prioritizing margins, as beyond a certain point, market share no longer delivers value.

He anticipates that competitive pressure, particularly in the southern markets of India, will persist, alongside ongoing consolidation within the industry.

News source: The Economic Times

Dalmia Bharat plans to invest approximately Rs 10 billion in capital expenditure for the quarter ending in March, bringing its total expenditure for the current fiscal year to around Rs 30 billion. As for the fiscal year 2025-26 (April-March), the company intends to spend between Rs 25 billion and Rs 30 billion on capital expenditure. Dalmia Bharat's current annual production capacity is 46.6 million tonnes, which is set to increase to 49.5 million tonnes by the end of March. India, being the second-largest cement producer globally, has seen domestic players aggressively expand capacities through both expansion and acquisitions to meet the anticipated demand driven by the government's infrastructure push. It is projected that between 2024 and 2028, 150-160 million tonnes of capacity will be added, driven by a combination of organic and inorganic growth. This increase in supply, coupled with heightened competition, is expected to limit the growth of cement prices, as noted in a Crisil report from last year. Dalmia also mentioned that while optimism surrounding cement prices has risen due to recent price recoveries, the intensifying competition may prevent any substantial price increases. He noted that the current market conditions are marked by aggressive market share pursuits, which, coupled with the lack of demand growth in the first nine months, have added strain to the industry. He pointed out that every industry goes through phases where the focus shifts from market share to prioritizing margins, as beyond a certain point, market share no longer delivers value. He anticipates that competitive pressure, particularly in the southern markets of India, will persist, alongside ongoing consolidation within the industry. News source: The Economic Times

Next Story
Infrastructure Transport

BMC Gets CRZ Nod For Rs 40 Million Gorai Bridge Rebuild

The Brihanmumbai Municipal Corporation (BMC) has secured Coastal Regulation Zone (CRZ) clearance for the reconstruction of the Poisar River bridge in Gorai, located in Mumbai’s western suburbs. However, the proposed demolition of the existing 100-metre bridge has sparked opposition from local residents, who claim it serves as the only direct access route between the Lower and Upper Koliwada areas. The three-decade-old bridge, situated within the CRZ buffer zone, was recently declared structurally unsafe following a civic audit. The BMC has sanctioned its reconstruction at an estimated cost ..

Next Story
Infrastructure Transport

NHAI Completes Rs 15.9 Billion Four-Lane Stretch On ECR

The National Highways Authority of India (NHAI) has completed the four-laning of the 38 km Puducherry–Poondiyankuppam stretch, ending near Cuddalore, in a development that will cut travel time by up to two hours, according to a report by The New Indian Express. The upgraded section, built at a cost of Rs 15.9 billion under the Bharatmala Pariyojana Phase I, marks a major milestone in the ongoing East Coast Road (ECR) widening programme. The project promises a smoother, faster drive for motorists travelling towards Cuddalore, Chidambaram, Sirkazhi, and Nagapattinam. With this completion, 22..

Next Story
Infrastructure Transport

Encroachments Delay Rs 1 Billion Ghatkopar Bridge Project

The construction of a new cable-stayed rail overbridge at Ghatkopar and the widening of the Andheri–Ghatkopar Link Road (AGLR) have been delayed due to the presence of nearly 250 encroached structures on both sides of the road. In response, Municipal Commissioner Bhushan Gagrani has directed officials to carry out a structural audit of the existing bridge over the railway line and enforce temporary restrictions on heavy vehicles to ensure public safety. The bridge, which starts at the Golibar Road junction near LBS Marg and extends up to the Eastern Express Highway (EEH), serves as a critic..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?