India’s cement sector is witnessing one of its most strategic plays yet, as Dalmia Bharat Ltd sets the stage for parallel growth—pursuing a contested acquisition while laying groundwork for a new greenfield plant. Under the leadership of managing director and CEO Puneet Dalmia, the company is both advancing the bid for Jaiprakash Associates Ltd’s cement assets and securing land and environmental clearances for a new facility in Rajasthan’s Jaisalmer district.

The Jaisalmer Gambit

Dalmia Bharat has initiated the process of acquiring land in Jaisalmer and obtaining environment clearance (EC) for a proposed 5–7 million tonnes per annum (mtpa) cement plant. The ₹3,600 crore project, targeted for completion of land and EC approvals by March 2026, is part of a contingency strategy—an alternate path should the company’s pursuit of Jaiprakash Associates’ assets under insolvency not succeed.

The Jaisalmer plant would mark Dalmia’s first major western India facility, strengthening its footprint in a region currently dominated by UltraTech and Shree Cement. This new base could complement Dalmia’s ongoing expansions in Belgaum, Pune, and Kadapa, forming a strategic triad to serve both southern and western markets.

The Battle for Jaiprakash Associates

The acquisition of Jaiprakash Associates—once the crown jewel of Jaypee Group—has become one of the most closely watched insolvency cases in India’s cement industry. With Vedanta Ltd currently leading the race with a ₹17,000 crore bid, Dalmia Bharat remains among the key contenders alongside Adani Enterprises, Jindal Power, and PNC Infratech.

Dalmia Bharat has received Competition Commission of India (CCI) approval for a potential 100% acquisition through the Insolvency and Bankruptcy Code (IBC) process. A final decision is expected after the committee of creditors evaluates funding plans and votes, likely in November 2025.

This isn’t Dalmia’s first attempt. In 2022, it had entered into a ₹5,666 crore deal with Jaypee Group for the same assets, only for the agreement to collapse when Jaiprakash Associates entered insolvency. The failure led Dalmia Bharat to write down ₹113 crore tied to tolling arrangements.

Capacity Building and Strategic Expansion

Currently, Dalmia Bharat operates 15 cement plants with a total capacity of 49.5 mtpa. Nearly half of its capacity is concentrated in the eastern and northeastern states, 44% in the south, and only 6% in the west. The company aims to raise this to around 64 mtpa by FY28 through expansions already underway.

Ongoing projects include:

• 6 mtpa expansion across Belgaum and Pune to serve Western Maharashtra and Northern Karnataka.
• 6 mtpa capacity addition at Kadapa, supported by a bulk terminal in Chennai.
• A 3.6 mtpa clinker line in the northeast, enabling the setup of an additional 2–2.5 mtpa grinding unit in the region.

If either the Jaiprakash Associates acquisition (8–10 mtpa) or the Jaisalmer project (5–7 mtpa) materializes, Dalmia Bharat is on track to achieve 70–72 mtpa capacity by FY28.

Prudent Capital Strategy Amid Growth

While Dalmia Bharat’s expansion drive continues, the company remains cautious about overextension. Puneet Dalmia has emphasized maintaining a “healthy balance sheet” and adhering to the firm’s capital allocation framework. As part of this conservative approach, the company has reduced its FY26 capex target from ₹4,000 crore to ₹3,000 crore—partly reflecting improved supplier credit and a pause on large new projects like Jaisalmer until regulatory clarity emerges.

Competitive Landscape: A Cement Power Play

Dalmia Bharat’s ambitions unfold in a market dominated by larger peers:

• UltraTech Cement leads the pack with 188 mtpa and plans to reach 200 mtpa by FY26.
• Adani Cement (via Ambuja and ACC) now exceeds 100 mtpa.
• Shree Cement targets 80 mtpa by FY28.

Against this backdrop, Dalmia Bharat’s strategic positioning—balancing organic and inorganic growth—aims to bridge the capacity gap while staying financially disciplined.

Takeaways

Dalmia Bharat’s twin-track approach reflects both ambition and prudence. By pushing forward with the Jaisalmer greenfield project while vying for the Jaiprakash Associates assets, the company is hedging its bets smartly in a volatile acquisition landscape. Whether it emerges as the new owner of Jaypee’s assets or pioneers a new plant in Rajasthan, Dalmia Bharat is clearly reinforcing its intent to cement its place among India’s top three producers—one strategic move at a time.

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This article should not be interpreted as investment advice. For any investment decisions, consult a reputable financial advisor. The author and publisher are not responsible for any losses incurred by investors or traders based on the information provided.