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Wishing to penetrate the cement market of North India with the fate of Binani Cement in balance, Dalmia Bharat is now evaluating options such as the acquisition of other cement plants or units in the region.
Indrajit Chatterji, Executive Sales Manager According to BK Singh, executive director of Dalmia Bharat Group Marketing and Communications, the company's goal is to advertise for the area's Dalmia Bharat Cement. emerge as a pan-Indian player and not be limited to certain geographical areas. Although the company's consolidated production capacity is currently 26 million tonnes per year (mtpa), it is limited to the south, east and north-east, leaving the north out of reach. from India
. appeal to NCLT or the courts, citing the government's position
Singh said that wherever the company operated, it has a significant presence with a good market share. "When we enter a new geography, we want a significant presence," he added.
For this reason, Dalmia Bharat had been inflexible on his plan to acquire Binani Cement, which would have opened an available market, giving it significant presence with a 6.25 mtpa plant in Rajasthan.
He appeared as the H1 bidder in the Binani Cement insolvency process. His plans took a hit after UltaTech Cement, the bidder until then unsuccessful, mounted his opposition to the takeover. Now, after a prolonged series of disputes, the fate of Binani Cement remains undecided.
ALSO READ: Insolvency process: SC asks Binani Cement to be moved to NCLAT
The acquisition was a key strategy for the company to step up its activities and to enter new geographical areas. Last year, she acquired Kalyanpur Cements, which has the only integrated clinker capacity in Bihar, thus marking her foray into the state.
Dalmia Bharat is today the only cement factory with at least one plant in each of the four eastern regions. States including West Bengal, Bihar, Jharkhand and Odisha. It holds a 15% market share in the East, making it the second largest cement plant in the area, while its consolidated market share in South India is 11-12%.
His entry strategy in Western India was After acquiring the badets of Murli Cement, which will open up Maharashtra to the company, we had a limited presence in Maharashtra because the l & # 39; This state's supply came from our Belgaum factory in Karnataka, but Murli Cement opens its doors. He expects that by the end of the third quarter of 2018-2019, Kalyanpur Cements will start production and the acquisition process of Murli Cement will be completed by the end of l & # 39; year. the financial year. After the completion of the acquisition of Murli Cement, the consolidated capacity of Dalmia Bharat will be 29 mtpa.
The company is focused on growing its premium portfolio. Currently, premium cement brands represent 60% of the company's consolidated business figure. Singh expects this to rise to 80% over the next three years.
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