Dalmia Cement takes inorganic path to growth; Binani acquisition is crucial

Company sees it as a better time to buy rather than build its own cement assets; Binani deal, in which UltraTech is a hurdle, will boost its capacity to 40 mn tonnes

Having set its first cement plant in 1939, Dalmia Bharat Group is one of the oldest cement manufacturers in India, with more than 70 years of presence in the market. Most of its capacity growth, however, happened in the last one decade, which could see a further leap with its ongoing acquisitions.

Between 2004 and 2017, the company grew to a 25-million-tonne capacity from a modest 1.2-million-tonne-per-annum cement making company. With three acquisitions underway, this capacity is bound to rise higher. With its planned acquisitions of Murli Industries and Kalyanpur Cements, the capacity increase to 29.1 million tonnes. Though stuck