Consolidation Will Accelerate, Strengthening Pricing Power Over Time

Cement maker Dalmia Bharat announced a capex plan of ₹3,520 crore last week to add 6 MTPA of new capacities. PUNEET DALMIA, chief executive officer (CEO) and managing director (MD), told Amritha Pillay during a virtual interaction, that he is optimistic about the sector in the long term, even as margins remain weak in the short term. Edited excerpts:

- PUNEET DALMIA

The company announced plans to take its capacity to 55.5 MTPA. In the long term, you have indicated 75 MTPA by FY28 and 110-130 MTPA by FY31 as other targets. Can you elaborate?

We will do it in a phased manner and as and when we are ready, we are going to keep announcing it.

With a capex of ₹3,520 crore, we will be adding capacities to serve western India—Maharashtra, Goa and northern Karnataka.

This is consistent with our strategic vision to become a pan-Indian company. We are underrepresented in Western India.

What is your cement demand outlook?