### **Overview** Dalmia Bharat Limited is one of India’s leading cement manufacturers and the **fourth-largest cement producer by capacity**, with an operational capacity of **49.5 million tonnes per annum (MTPA)** as of June 30, 2025. The company has established itself as a **low-cost, sustainable, and innovation-driven player** in the cement sector, with a clear strategic vision of becoming a **pan-India pure-play cement company** by 2031. With over **80 years of legacy** since its founding in 1939, Dalmia Bharat has evolved from a regional player into a nationally recognized brand, combining operational excellence, sustainability leadership, and strategic expansion to strengthen its competitive edge. --- ### **Strategic Positioning and Competitive Advantages** #### **1. Cost Leadership** Dalmia Bharat is **India’s lowest total-cost cement producer**, supported by: - Long-term raw material supplier agreements (coal, pet coke, fly ash, slag). - A high proportion of **blended cement (84–88% of production)**, reducing clinker factor and carbon footprint. - Investments in **renewable energy (targeting 328 MW by FY25)** and **389 MW of captive power** capacity. - Plants located near raw material sources and key markets, reducing freight costs (average lead distance: ~300 km). - Use of **multi-fuel kilns** and alternative fuels (waste heat recovery, solar, biodiesel, RDF). #### **2. Sustainability & Innovation Leadership** - **Carbon-negative by 2040**: First global cement company to commit to carbon negativity. - World leader in **Portland Slag Cement (PSC)** production — India’s most sustainable industrial-scale cement. - Pioneering R&D in **low-carbon technologies**: - **Carbon Capture and Utilization (CCU)** pilot with IIT Bombay at Rajgangpur (target: 2,000 kg CO₂/day). - **Plasma heating technology** collaboration with SaltX for fossil-free calcination. - Trials of **LC3 cement** and development of novel SCMs like **InnoSil** (from sugar waste). - Recognized by the **Carbon Disclosure Project (CDP)** and certified **water-positive**. #### **3. Product Differentiation** The company offers a diversified, high-value product portfolio: - **Premium Retail Brands:** - *Dalmia Supreme*: High-strength OPC with faster setting, suited for harsh environments. - *Dalmia DSP Cement (AA+)*: Robotic quality control, optimized for Roof, Column, and Foundation (RCF) applications. - **Institutional Brands:** - *Dalmia Infra Pro*: For high-performance, consistent infrastructure. - *Dalmia Insta Pro*: Fast-setting OPC for pre-cast blocks and pavers. - Specialized cements for **railway sleepers, oil wells, air strips, and nuclear projects**. - Campaign **“RCF Strong. Toh Ghar Strong.”** reinforces brand positioning in the home construction segment. --- ### **Geographic Footprint and Market Presence** - **Production Capacity Distribution (as of Jun 2025):** - **East**: 44% (Odisha, West Bengal, Jharkhand, Bihar) – Leading market position. - **South**: 34% (Tamil Nadu, Andhra Pradesh, Karnataka) - **Northeast**: 16% (Assam, Meghalaya) - **West**: 6% (Maharashtra) – Expanding via new projects. - Operations across **15 integrated plants and grinding units in 10 states**. - Supplies to **23 Indian states** through **46,600+ channel partners** and **575+ warehouses**. - Strong brand presence in **high-growth regions**: East, North-East, South, and Central India. --- ### **Growth Strategy and Expansion Plans** Dalmia Bharat is pursuing **aggressive capacity growth** through a combination of **organic expansion and strategic acquisitions**, targeting: - **75 MTPA by FY28** - **110–130 MTPA by 2031** (14–15% CAGR over a decade) #### **Key Expansion Projects (FY25–FY28)** | **Project** | **Capacity Addition (MTPA)** | **Location** | **Purpose** | |------------|-------------------------------|-------------|------------| | **Belgaum Expansion** | 6.6 MTPA | Karnataka | Serves North Karnataka & Southern Maharashtra | | **Kadapa Expansion** | 3.6 MTPA clinker + 6 MTPA grinding | Andhra Pradesh | Strengthens South India presence | | **Chennai Bulk Terminal** | 3 MTPA | Tamil Nadu | Serves underserved Northern TN | | **Umrangso Clinker Unit** | 3.6 MTPA | Assam | Makes NE clinker-surplus; enables 2–2.5 MTPA grinding | | **New Grinding Units in NE & Bihar** | 2.9 MTPA | Assam, Bihar | Expands market share | | **Jaisalmer Greenfield Plant** | 6 MTPA | Rajasthan | Strategic entry into North India (pending JP Associates acquisition) | - **Total capacity increase potential**: ~14.5 MTPA from near-term projects → **~64 MTPA by FY28**. - **JP Associates Acquisition**: ~9.4 MTPA clinker & cement capacity in Central India; expected to solidify pan-India presence. Deal pending creditors' approval but progressing toward early resolution. --- ### **Operational Excellence and Digital Transformation** Dalmia Bharat is digitally transforming across the value chain under **RISE with SAP**: - **Digital Platforms**: - Cloud migration (Google Cloud Platform), SAP, Big Query, and Microsoft Fabric. - **"Suvidha" app** for dealers: order, payment, invoice, CRM. - **"DBA Pro"** app for technical advisors: lead and site management. - **Sales Buddy (WhatsApp-based AI tool)** for opportunity identification. - **Industry 4.0 Integration**: - IoT, AI, and RPA for **predictive maintenance**, **energy optimization**, and **plant automation**. - Real-time analytics across 15 plants for improved operational accuracy and reduced downtime. - **Logistics & Supply Chain**: - GPS-tracked fleet (>90% coverage), **95% consignment visibility**. - **Transportation Management System (TMS)** improves load efficiency and delivery time. - **Freight Tiger partnership** enables end-to-end digital freight management. - **Gamification** for sales teams improves motivation and performance. --- ### **Financial and Capital Allocation Discipline** - **Net debt/EBITDA**: 0.55x (as of Dec 2024), indicating strong balance sheet. - CAPEX: - FY25: ~Rs. 2,664 crores (organic expansion, debottlenecking, renewables). - FY26: Projected ~Rs. 3,500 crores (Belgaum, Pune, Umrangso, efficiency). - **Capital Allocation Framework**: - Target: Net debt/EBITDA ≤ 2x. - Exclusively focused on cement; non-core assets (Dalmia Refractories, IEX stake) being divested. - Prioritizes **profitable growth over forced scale**.