Business Standard

Dalmia K'taka cement plant to cater to Maharashtra demand

Rs 1,300 new plant expected to start production before fiscal end

BS Reporter Chennai
Dalmia Cement (Bharat) Ltd said the company’s Karnataka cement plant, which is under development, would cater to the demand arising out of Maharashtra.

The demand for cement in Maharashtra stands at 24 million tonne per annum (mtpa).

Speaking in Chennai today, Vipin Agarwal, chief executive officer, south-cement, Dalmia Bharat Group, said the company is investing around Rs 1,300 crore in the 2.5 mtpa plant in Belgaum, Karnataka. The plant is expected to start production by March 2014.

Of the total investment, around Rs 800 crore would be funded through debt and the remaining from internal accruals. After its commissioning, the total capacity will increase to 11.5 mtpa, from the current 9 mtpa, he said.

To a question on company's excess capacity at a time when the market is down, he said, “no company puts up excess capacity deliberately. Investments are made based on projections. But it is the timing. Nobody can predict the start and the end of the economic cycle,” he said.

The company makes nearly 15 per cent of its retail sales in Tamil Nadu and Kerala.
 
 
Dalmia Cement gets nearly 35 per cent of its sales revenue from institutional sales like selling to other cement makers who are in the field of ready-mix concrete. The company also exports small quantities of cement to Sri Lanka and Maldives.

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Oct 18 2013 | 8:41 PM IST

Explore News