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Dalmia Cement (Bharat) Ltd (DCBL), the second largest cement player in the southern region, is looking at saving on production costs by setting up warehouses nearer to markets and is eyeing new rural markets to retain margins. Also, Dalmia Cement Ventures Ltd (DCVL), its wholly owned subsidiary, will start setting up plants in Himachal Pradesh and Meghalaya during this fiscal. The company has tied up for power and mines and is also processing clearances for its plants in Rajasthan and Madhya Pradesh which are in the final stages.

 

DCVL will cater to the north-east region through the plant in Meghalaya. Production from Madhya Pradesh and Rajasthan may cater to the Mumbai market apart from Gujarat. To reduce its fuel costs it is building warehouses or depots closer to the market, which is maximum 100 km away, for stocking cement. These feeder points, in turn, help in transferring in bulk quantity to the dealer. It reduces dealer inventory and helps in managing costs. Its new strategy is to reach 500 km from the production point versus 300 km adopted by other cement manufacturers.

 

DCBL's Ariyalur plant in Tamil Nadu will start production by the year end and its Kadappa plant has already started production with a capacity of 2.5 million tonnes. The capex for both plants was Rs 1,600 crore, of which Rs 500 crore is yet to be spent. The company is expecting a capacity utilisation of 85% at its plants and sees prices remaining flat and operating margins under pressure. The southern market is betting on infrastructure projects in Andhra Pradesh and Tamil Nadu. In South, DCBL is looking at a first-mover advantage and has been also able to cut costs as coal prices have fallen to $120 per tonne from their peak of $200 per tonne. Cement prices in the region have fallen by Rs 10-15 per 50 kg bag and are now in the range of Rs 265-270 per 50 kg bag.

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Dalmia Bharat Sugar Share Price

378.70 6.80 (1.83%)
13-Apr-2026 11:09 View Price Chart
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