Dalmia Bharat has announced the acquisition of cement plants across Madhya Pradesh and Uttar Pradesh, marking a significant expansion into the Central Region. The company’s wholly owned material subsidiary, Dalmia Cement (Bharat) Limited (DCBL), executed a Business Transfer Agreement with Jaiprakash Associates Limited (acquired by the Adani Group under the Insolvency & Bankruptcy Code) and Adani Infra (India) Limited to acquire the assets.
The acquisition comprises four plants: an integrated unit at Rewa in Madhya Pradesh with 1.1 MnTPA cement capacity and 3.3 MnTPA clinker capacity, along with 62 MW of thermal power; a grinding unit at Chunar in Uttar Pradesh with 2.5 MnTPA cement capacity and 37 MW thermal power; a grinding unit at Churk in Uttar Pradesh with 1.0 MnTPA cement capacity; and a blending unit at Sadwa in Uttar Pradesh with 0.6 MnTPA capacity. The total enterprise value stands at ₹2,850 crore, with financing expected through a mix of debt and internal accruals.
Following the consummation of this transaction, expected within two weeks, Dalmia Bharat‘s total cement capacity will increase to 54.7 MnTPA from the existing 49.5 MnTPA. The company’s existing cement capacity utilisation stands at 61% on a pro-rata basis. The acquired assets include 99 MW of thermal power capacity and railway sidings, offering significant operational advantages.
Commercial production at the acquired plants is expected to commence in Q2 FY27. The company plans to invest approximately ₹300 crore in refurbishment capex over one year and ₹250 crore in efficiency capex (including waste heat recovery systems) over two years. The acquisition also provides debottlenecking and brownfield expansion opportunities, with potential for additional cement capacity of 1.5–2.0 MnTPA and clinker capacity of 0.5–0.7 MnTPA.
The Central Region acquisition aligns with Dalmia Bharat’s strategic vision of becoming a pan-India player. The company cited faster market entry compared to greenfield projects, high-potential markets with strong pricing, and proximity to its captive limestone mines in Satna as key rationale. The company expects these assets to augment EBITDA delivery and enhance overall returns, whilst maintaining comfortable net debt to EBITDA levels below the 2x threshold.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).