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Dalmia Bharat Cement Group will look to grow at double the industry average – by at least 20 per cent – here in the eastern region for FY-17.
The region consists of West Bengal, Bihar, Jharkhand, Odisha and Chhattisgarh, and accounts for nearly 44 per cent or ₹3,500 crore of the group’s ₹8,000 crore turnover last fiscal.
According to Amandeep, Director and CEO, OCL India – a subsidiary of the Dalmia Bharat Group – the cement industry is looking at a 10-11 per cent growth in the East.
Growth will come primarily following a boost in rural road, state and national highway constructions (by the Centre and State governments) and post a fillip to mass housing schemes.
Bihar, Bengal and Odisha are said to be the prime drivers.
The company has a 12 per cent market share in the East.
In FY-16, the eastern States had seen “good growth” in cement demand – above the national average of 4 per cent.
The situation this fiscal is expected to be the same.
Demand at the national level is expected to hover between 4 and 6 per cent.
“Our target is to grow at least double the industry average of 10-11 per cent for 2016-17. Last fiscal we grew at 50 per cent in the region,” he told reporters on the sidelines of a new premium product launch.
Expansion plans Four of its 11 plants are located in the East.
The four plants – two in Odisha and one each in Jharkhand and West Bengal – have a combined annual capacity of 8.8 million tonnes.
According to Amandeep, the company might explore the opportunity of setting up a second manufacturing unit here in West Bengal, but at a later stage.
This follows the group’s “good experience” at its existing plant in Bengal.
The group has already invested about ₹600 crore for its existing 1.3 million tonne per annum grinding unit near Salboni at West Midnapore district.
“As of now, we are through with our capex. However, we may explore the setting up of a second unit sometime later,” he said.
Acquisitions and export to neighbouring countries such as Myanmar and Bangladesh too, can be explored later.
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