Dalmia Eyes JP Assets, Plans Backup Expansion in Jaisalmer
Cement

Dalmia Eyes JP Assets, Plans Backup Expansion in Jaisalmer

Dalmia Bharat remains committed to acquiring Jaiprakash Associates’ (JAL) assets as part of its nationwide growth strategy. However, in parallel, the company is preparing a Plan B involving a greenfield expansion in Jaisalmer, with a final review expected by the end of FY26.

Puneet Dalmia, Managing Director and CEO, stated that while the company awaits the outcome of its Rs 57 billion bid for JP assets, it continues developing alternative growth routes. Dalmia Bharat concluded FY25 with a cement capacity of 49.5 million tonnes per annum (mtpa) and expects to add 14 to 14.5 mtpa through ongoing projects in Belgaum, Kadapa, and the Northeast by FY28.

In an investor call, Dalmia said the company will assess progress quarterly—both on the JP acquisition and internal project execution—while staying ready to act swiftly.

Dalmia Bharat and Adani Enterprises are leading contenders in the bidding process for JAL’s full asset portfolio, which includes cement plants, hotels, land parcels, power plants, and other properties undergoing corporate insolvency proceedings. The acquisition would significantly strengthen Dalmia’s footprint in central and northern India.

Describing the company as a “pure-play cement player,” Dalmia emphasised that JP’s cement business aligns strategically with its broader ambitions. The previous Rs 57 billion deal collapsed when JP entered insolvency proceedings in late 2022. Consequently, Dalmia recorded a Rs 1.13 billion impairment loss in Q1FY25 related to a discontinued tolling arrangement.

If successful, the JP acquisition could add 9–10 mtpa to Dalmia’s capacity. This includes a clean 5 mtpa asset in Rewa, Madhya Pradesh, a potential joint venture with SAIL in Bokaro Jaypee Cement Ltd (BJCL), and a clinker unit in Uttar Pradesh under arbitration with Ultratech.

Dalmia noted that the committee of creditors is expected to review bids soon and may offer more clarity on the timeline. An early resolution is anticipated, though no firm date has been set.

Meanwhile, as a contingency, the company is progressing with its Jaisalmer expansion—planned as a 6 mtpa greenfield plant aimed at strengthening its presence in northern India. Land acquisition and mining lease are complete, and environmental clearance is underway.

The company intends to reassess the Jaisalmer project by March 2026. Even if construction begins in Q1FY27, Dalmia expects commissioning by FY28. However, final commitment will depend on how the JP acquisition unfolds.


Dalmia Bharat remains committed to acquiring Jaiprakash Associates’ (JAL) assets as part of its nationwide growth strategy. However, in parallel, the company is preparing a Plan B involving a greenfield expansion in Jaisalmer, with a final review expected by the end of FY26.Puneet Dalmia, Managing Director and CEO, stated that while the company awaits the outcome of its Rs 57 billion bid for JP assets, it continues developing alternative growth routes. Dalmia Bharat concluded FY25 with a cement capacity of 49.5 million tonnes per annum (mtpa) and expects to add 14 to 14.5 mtpa through ongoing projects in Belgaum, Kadapa, and the Northeast by FY28.In an investor call, Dalmia said the company will assess progress quarterly—both on the JP acquisition and internal project execution—while staying ready to act swiftly.Dalmia Bharat and Adani Enterprises are leading contenders in the bidding process for JAL’s full asset portfolio, which includes cement plants, hotels, land parcels, power plants, and other properties undergoing corporate insolvency proceedings. The acquisition would significantly strengthen Dalmia’s footprint in central and northern India.Describing the company as a “pure-play cement player,” Dalmia emphasised that JP’s cement business aligns strategically with its broader ambitions. The previous Rs 57 billion deal collapsed when JP entered insolvency proceedings in late 2022. Consequently, Dalmia recorded a Rs 1.13 billion impairment loss in Q1FY25 related to a discontinued tolling arrangement.If successful, the JP acquisition could add 9–10 mtpa to Dalmia’s capacity. This includes a clean 5 mtpa asset in Rewa, Madhya Pradesh, a potential joint venture with SAIL in Bokaro Jaypee Cement Ltd (BJCL), and a clinker unit in Uttar Pradesh under arbitration with Ultratech.Dalmia noted that the committee of creditors is expected to review bids soon and may offer more clarity on the timeline. An early resolution is anticipated, though no firm date has been set.Meanwhile, as a contingency, the company is progressing with its Jaisalmer expansion—planned as a 6 mtpa greenfield plant aimed at strengthening its presence in northern India. Land acquisition and mining lease are complete, and environmental clearance is underway.The company intends to reassess the Jaisalmer project by March 2026. Even if construction begins in Q1FY27, Dalmia expects commissioning by FY28. However, final commitment will depend on how the JP acquisition unfolds.

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