Dalmia Bharat acquires 5.2 MnTPA capacity for ₹2,850 Cr
Dalmia Bharat announced the acquisition of 5.2 MnTPA cement capacity from Jaiprakash Associates and Adani Infra for ₹2,850 Cr, increasing total capacity to 54.7 MnTPA. The deal includes plants in Rewa, Churk, Chunar, and Sadwa, along with 99 MW of thermal power capacity. The company targets a total capacity of 66.7 MnTPA by Q2~Q3 FY28.
*this image is generated using AI for illustrative purposes only.
dalmia bharat has announced a major capacity expansion through its wholly owned subsidiary, Dalmia Cement (Bharat) Limited (DCBL). The subsidiary executed a Business Transfer Agreement on May 21, 2026, with Jaiprakash Associates Limited (JAL) and Adani Infra (India) Ltd. to acquire cement plants located in Rewa, Churk, Chunar, and Sadwa. The transaction, valued at an enterprise value of ₹2,850 Cr, includes assets with a cement capacity of 5.2 MnTPA and clinker capacity of 3.3 MnTPA.
The acquired assets also include 99 MW of thermal power capacity and railway sidings. Upon the consummation of the transaction, which is expected within two weeks, Dalmia Bharat’s total cement capacity will rise to 54.7 MnTPA. The company has stated that commercial production at these plants is expected to commence in Q2 FY27. The acquisition is financed through a mix of debt and internal accruals.
Plant-wise Capacity Details
The acquisition encompasses four distinct manufacturing units across Madhya Pradesh and Uttar Pradesh. The details of the existing capacity at these locations are outlined below:
| Plant Location | Unit Type | Existing Capacity |
|---|---|---|
| Rewa (Madhya Pradesh) | Integrated Unit* | Cement: 1.1 MnTPA Clinker: 3.3 MnTPA Thermal Power: 62 MW |
| Chunar (Uttar Pradesh) | Grinding Unit* | Cement: 2.5 MnTPA Thermal Power: 37 MW |
| Churk (Uttar Pradesh) | Grinding Unit^ | Cement: 1.0 MnTPA |
| Sadwa (Uttar Pradesh) | Blending Unit | Cement: 0.6 MnTPA |
*With Railway Siding ^common railway siding with Churk Power Plant (owned by Adani Power Limited)
Strategic Rationale and Expansion
The company highlighted that this capacity addition in the Central Region supports its vision of becoming a pan-India player. The assets provide faster access to Central markets compared to greenfield projects and offer opportunities for debottlenecking and brownfield expansion. Dalmia Bharat expects these assets to augment EBITDA delivery and enhance overall returns, citing relatively better prices in the region and its proven cost leadership.
Future Capacity Targets
In addition to this acquisition, Dalmia Bharat is pursuing ongoing expansion projects at Belgaum, Pune, and Kadapa. These projects are expected to further augment the company’s cement capacity to 66.7 MnTPA by Q2~Q3 FY28. The current installed manufacturing capacity stands at 49.5 MnTPA for cement and 27.1 MnTPA for clinker.
Historical Stock Returns for Dalmia Bharat
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.40% | -0.96% | -12.17% | -13.01% | -16.35% | -4.54% |
How will Dalmia Bharat's debt-to-equity ratio evolve post-acquisition, and what is the timeline for deleveraging given the mixed financing through debt and internal accruals?
What debottlenecking and brownfield expansion potential exists at the acquired plants, and could capacity at these locations exceed the current 5.2 MnTPA in the medium term?
How might this acquisition shift competitive dynamics in the Central India cement market, particularly against incumbents like UltraTech and Shree Cement?
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