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Dalmia Bharat eyes premiumisation; acquisitions on radar

Press Trust of India  |  Kolkata 

Bharat may soon abandon the mass segment as it tries to move up the with premiumisation while weighing options on organic and inorganic growth to enter newer markets of North

"Premium and super-premium brands account for 60 per cent of revenues and in the next two years it would rise to at least 80 per cent. Ideally, we will go 100 per cent," Bharat Senior Executive Marketing B K Singh said.

He was in city to launch a new premium 'FBC'.

The company is currently present in East, Northeast and South

"It has been the objective of this company to emerge as a pan-player and not limit itself to certain geographies," Singh said.

With the fate of hanging in the balance, Cement had not ruled out options of acquisition of other cement companies or units for the foray.

We had been trying to enter north (India) and attempt for Binani was a step towards that, Singh said.

The company, however, declined to divulge alternate plans for foray into the northern Indian market if its bitter legal battle with under the Insolvency and Bankrupcy Code to win over fails.

The companys consolidated production capacity stands at 26 million tonne per annum (mtpa) but is limited to south, east and the northeast.

If Cement wins over Binani Cement, it can open a readily available market comprising and for the company giving it a sizeable presence with its 6.25 in

Acquisition has been a key strategy for the company in scaling up its as well as enter new geographies.

Last year, it acquired only integrated clinker capacity in Kalyanpur Cements, marking its foray into the state.

As of now, is the only cement company which owns at least one plant in each of the four key eastern states of West Bengal, Bihar, and Odisha.

"We command a 15 per cent market share in the east making it the second largest cement company in this zone while its consolidated market share in stands at 11-12 per cent," Executice Director, (east) said.

Its bid to enter the west Indian has also been successful after it acquired the three million tonne stressed assets of which is expected to open up the market for the company.

Both the acquisitions could be ready by the third quarter of this year, the company expects.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, July 13 2018. 20:40 IST