Dalmia Bharat may exit mass cement segment
Dalmia Bharat Cement may soon abandon the mass cement segment as it tries to move up the value chain with premiumisation while weighing options on organic and inorganic growth to enter newer markets of North India. "Premium and super-premium cement brands account for 60 per cent of revenues and in the next two years it would rise to at least 80 per cent. Ideally, we will go 100 per cent," Dalmia Bharat Senior Executive Director Marketing B K Singh said. He was in city to launch a new premium cement brand 'Dalmia FBC'. The company is currently present in East, Northeast and South India. With the fate of Binani Cement hanging in the balance, Dalmia Bharat Cement had not ruled out options of acquisition of other cement companies or units for the North India foray. We had been trying to enter north (India) and attempt for Binani was a step towards that, Singh said. The company, however, declined to divulge alternate plans for foray into the northern Indian market if its bitter legal battle with UltraTech under the Insolvency and Bankrupcy Code to win over Binani Cement fails. The companys consolidated production capacity stands at 26 million tonne per annum (mtpa) but is limited to south, east and the northeast. If Dalmia Bharat Cement wins over Binani Cement, it can open a readily available market comprising Rajasthan and Gujarat for the company giving it a sizeable presence with its 6.25 mtpa cement plant in Rajasthan.
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