Dalmia Bharat Group to invest Rs 2,000 crore on Odisha plant

Industry: Cement 2016-12-05

Dalmia Bharat Group has announced an investment of Rs 2,000 crore to expand the capacity of its cement plant in Odisha. Group company Dalmia Cement Bharat Ltd has 74.6 stakes in OCL India, a leading cement maker with the largest market share in Odisha.

OCL India Ltd with a total installed capacity of 5.4 million tonne per annum distributed between its two manufacturing units in Odisha, has consistently been fulfilling the ‘Make in Odisha’ agenda of the state since 1950.

Mahendra Singhi, Group CEO, Dalmia Bharat Group, said: “Odisha is a currently on a high economic growth trajectory and its GDP is expected to grow at around 12% by 2020. The state government’s commitment to industrial development backed by industry-friendly policies has already started showing positive results. Odisha has always been our home soil and our business relationship with the state has matured over the years. The state’s zeal to grow further thus compels us to partner its next leap of growth.”

“Good governance and stable political leadership have been one of the prime factors that have helped investors show faith in investment in the State. Additionally, there has been a growing improvement in business sentiment across sectors in Odisha due to investor friendly policies. The concept of a Smart City will get a boost if the government focuses more on road and power infrastructure. With government’s focus on affordable housing and Smart cities, cement can expect incremental growth in demand over the next five years”, said Amandeep Singh, director & CEO, OCL India Ltd.

Cement demand in India is expected to increase due to the government push for large infrastructure projects, leading to 45 million tonne of cement needed in the next three to four years. India’s cement demand is expected to reach 550-600 million tonne per annum (mtpa) by 2025. To meet the rise in demand, the cement industry is expected to add about 56 million tonne capacity over the next three years.