Smart Manufacturing
for Strong Bharat

Ariyalur Plant, Tamil Nadu

Strengthening the Foundations for a Rising Bharat

FY 2025–26 has been a year of focussed execution and steady progress. We scaled production to 30.04 MnTPA while improving plant reliability through digital systems and disciplined operations. Our push towards blended cements and a 46% renewable energy share reflects a clear shift to more sustainable manufacturing. Capacity expansion across key regions is progressing well, strengthening our ability to serve growing demand. At the same time, cost optimisation and supply chain efficiency remain priorities. With these efforts, we are building a resilient, future-ready manufacturing platform aligned with Bharat’s growth.

Bokaro, Jharkhand

Performance Snapshot

61 %

Capacity Utilisation

30.04 MT

Production Volume

30.0 MT

Sales Volume

46 %

Renewable Energy Share

Building Linkages Across

Capitals

Manufactured Capital
Natural Capital

Strategies

Generate Strong Returns and Maintain a Strong Balance Sheet
Become a Pan-India Player
Deliver Measurable Sustainability

Material Issues

Biodiversity Conservation
Water Stewardship
Waste Management
Circular Economy
GHG and Climate Change
Energy Management
Economic Performance

Risks

Input Material Availability & Cost Volatility Risk
Demand Risk Arising from Macroeconomic Factors
Land Acquisition and Surface Rights Risk
Mining Risk
Competition Risk

Stakeholders

Customers and Dealers
Suppliers
Industry Associations, Knowledge and Technology Partners
Government and Regulatory Bodies

SDGs

“FY 2025-26 has been a year of focussed execution and steady progress. We scaled production to 30.04 MnTPA while improving plant reliability through digital systems and disciplined operations. Our push towards blended cements and a 46% renewable energy share reflects a clear shift to more sustainable manufacturing. Capacity expansion across key regions is progressing well, strengthening our ability to serve growing demand. With these efforts, we are building a resilient, future-ready manufacturing platform aligned with Bharat’s growth.”

Mr. Ganesh W Jirkuntwar

National Manufacturing Head

Strategic Priorities

Expand & Compete

Scale capacity across India with a lean operating footprint driven by cost, logistics, and supply chain excellence.

Scale Efficiency Infrastructure

Lead Responsibly

Embed ESG, decarbonisation, and risk governance — making sustainability a competitive advantage.

Sustainability Governance

Grow Beyond Organic

Pursue acquisitions and strategic partnerships to accelerate market position and long-term value.

M&A Strategic Growth

Build for the Future

Integrate emerging technologies and build a high performance organisation to execute complex, large-scale projects.

Innovation Talent

FY 2025-26 Initiatives

Key initiatives during the year were aligned with five core strategic objectives:

Capacity Expansion

Scaling capacity from ~49.5 MTPA towards 75 MTPA in the medium term, with a long-term vision of 110–130 MTPA by 2031.

Regional Market Strengthening

Expanding presence across key regions, including the Northeast (Umrongso), South (Belgaum, Kadapa) and West (Pune).

Sustainability Leadership

Advancing renewable energy adoption, carbon reduction initiatives, and smart plant frameworks.

Cost Leadership

Enhancing efficiency through logistics optimisation, energy cost reduction, and modernisation.

Renewable Energy

Achieved a landmark renewable energy share of 46%, driven by the addition of 182 MW of RE capacity and moving closer to the strategic goal of 50% clean energy consumption.

Packaging Plant, Tamil Nadu

Capacity Expansion

Capacity expansion is a core pillar of Dalmia Bharat’s growth strategy, driven by a structured yet flexible project prioritisation framework. Projects are broadly categorised into two categories:

Capital Expenditure for Existing Units

Evaluated on parameters such as safety, return on investment, infrastructure, sustainability, and market conditions.

New Capacity Additions through Brownfield and Greenfield Developments

Prioritised based on execution readiness, demand outlook, and alignment with strategic objectives.

The expansion journey follows a well-defined lifecycle, beginning with inclusion in strategic growth plans and progressing through feasibility assessment, conceptualisation, and budgeting. Once proposals receive Board approval, projects move into execution phases, including procurement, detailed engineering, construction, and commissioning, before transitioning into full-scale operations.

Capacity Expansion Roadmap

Clinker Capacity Expansion

Umrangshu, Assam

Commissioned a 3.6 MnTPA clinker line in January 2026, enabling clinker sufficiency for ~8 MnTPA cement capacity in the Northeast.

Belgaum, Karnataka

A 3.6 MnTPA clinker unit under construction, commissioning targeted by the end of FY 2026-27.

Kadapa, Andhra Pradesh

Board-approved 3.6 MnTPA clinker unit to strengthen the market penetration in South region.

27.1 MTPA

Clinker Capacity in FY 2025-26

Upon completion, total clinker capacity is expected to increase to ~34.3 MnTPA by Q2 FY 2027-28, significantly enhancing supply security.

Cement Capacity Expansion

To complement clinker additions, we are adding 12 MnTPA of cement capacity:

Southern and Western India

Kadapa

6 MnTPA grinding unit at the existing plant, including 3 MnTPA bulk terminal at Chennai to serve Northern Tamil Nadu

Belgaum

3 MnTPA brownfield grinding unit

Pune

3 MnTPA greenfield split grinding unit targeting Western Maharashtra

Ariyalur, Tamil Nadu

Capacity Utilisation

We look at capacity utilisation in the context of how demand is shaping up across regions. At an overall level, we operated at 61% cement capacity utilisation in FY 2025-26. It provides us with adequate headroom to grow volumes without being immediately dependent on new capacity.

Utilisation levels differ meaningfully across our footprint, driven by local demand-supply conditions:

Some micro-markets are already operating at high utilisation levels
Others continue to have significant available capacity
The Kadapa plant in Andhra Pradesh is a clear example of a high-utilisation asset, which has informed our expansion decision in the region

Because of this dispersion, we take a market-specific approach rather than optimising for a single company-wide utilisation metric. Our strategy flexes depending on the utilisation profile of each region:

In markets with lower utilisation, we focus on increasing volumes and improving market share
In markets where utilisation is already high, we prioritise pricing discipline and margin improvement
Alongside this, we are also working on improving effective utilisation through operational efficiencies

This includes:

Logistics optimisation to reduce inefficiencies
Higher fleet utilisation to improve throughput across the network

From an industry perspective, cement sector utilisation in India is currently around 70%. With capacity additions expected to broadly keep pace with demand growth, we expect industry utilisation to remain range-bound, with overcapacity likely to persist in the near term.

Belgaum, Karnataka

Production

Operational Excellence Framework

Operational excellence has been strengthened through the implementation of a four-pillar structure across all units, encompassing Inspection, Planning, Execution, and Continuous Improvement. Inspection processes have been enhanced through geofencing to improve accountability, while real-time abnormality identification tools enable early detection of potential issues. In addition, Root Cause Analysis (RCA) is systematically conducted using the DMAIC (Define, Measure, Analyse, Improve and Control) methodology, ensuring structured problem-solving, effective corrective actions, and sustained process improvement across operations.

Lanka, Assam

Cost Optimisation Initiatives

A comprehensive, multi-pronged approach has been implemented to optimise operating costs while ensuring consistent product quality across plants. This approach focusses on improving raw material efficiency, optimising fuel consumption, enhancing the energy mix, and driving process improvements. These initiatives have contributed to sustained year-on-year cost reduction and strengthened manufacturing competitiveness.

Sustainability and Low-Carbon Manufacturing

Sustainability is embedded across every stage of project decision-making, ensuring that system selection remains closely aligned with long-term environmental goals. This commitment is reflected not only in overarching design principles but also in the specific technical choices made across new projects. These efforts support Dalmia Bharat’s aspiration to achieve carbon negativity over the long term, while also advancing its RE100 commitment toward sourcing 100% renewable electricity.

Renewable Energy Share

46 %

FY 2025-26

36 %

FY 2024-25

Shifting towards cleaner and cost-efficient energy sources

Fly Ash Utilisation

6.45 million

Tonnes per annum

6.41 million

Tonnes per annum

Reduced clinker dependency and optimised raw material usage

Key Sustainability-led Interventions

Engineering new pyro-processing systems to achieve ~50% Thermal Substitution Rate (TSR) with minimal modifications, while retaining flexibility for further enhancement through external waste utilisation.

Integrating future-ready features such as chlorine bypass systems and carbon capture units at the design stage.

Standardising the inclusion of Waste Heat Recovery Systems (WHRS) and rooftop solar installations to strengthen energy efficiency and renewable adoption.

Deploying best-in-class technologies to optimise heat and power consumption.

Decarbonisation and Renewable Energy Transition

A series of focussed initiatives has been undertaken to reduce carbon intensity across operations and accelerate the shift towards sustainable manufacturing. A key priority has been the increased adoption of renewable energy through investments in solar power, Waste Heat Recovery Systems (WHRS), and green power sourcing.

Energy Consumption

Municipal Waste Unit at Ariyalur, Tamil Nadu

Circular Economy and Resource Efficiency

The circular economy approach has been strengthened through higher utilisation of recycled waste and industrial by-products in cement manufacturing. Materials such as fly ash and slag are being used in blended cements like Portland Pozzolana Cement (PPC) and Portland Slag Cement (PSC), reducing clinker factor and associated CO₂ emissions.

Alternative Raw Materials and Recycled Waste

Recycled wastes and alternative raw materials continue to play a key role in decarbonisation of cement operations. Waste-derived fuels such as sustainable biomass, municipal and industrial waste, and plastics are co-processed in cement kilns, partially replacing conventional fossil fuels and increasing the thermal substitution rate. Recycled- waste utilisation improved by 2% in FY 2025-26 over FY 2024-25, contributing to lower coal dependency and reduced emissions. Additionally, the use of industrial by-products as alternative raw materials support clinker reduction, energy productivity improvements and CO2 mitigation.

Digital Transformation in Manufacturing

Digital technologies are being progressively integrated across manufacturing operations at Dalmia Bharat to enhance efficiency, reliability, and safety. SmartP serves as a unified digital platform, enabling structured inspections, real-time monitoring, and improved maintenance planning across all units.

Advanced systems are in the final stages of implementation, including an Enterprise Laboratory Information Management System (ELIMS) to strengthen quality management, a Plant Historian for centralised data acquisition and analytics, and AI-based video analytics to enhance safety monitoring and operational surveillance.

Under the Smart Plant initiatives, emerging technologies such as robotic inspection systems and humanoid-assisted solutions are being deployed to automate routine inspection tasks, strengthen predictive maintenance capabilities, and drive higher levels of operational excellence across facilities.

The deployment of IIoT sensors on critical equipment have improved equipment reliability and overall plant availability. During FY 2025-26, the IIoT-based monitoring system generated alerts, which ensured early fault detection and helped avoid an estimated multiple hours of potential downtime.

Luhmshnong, Meghalaya

Innovation in Manufacturing

India is in the midst of an infrastructure transformation. The government’s infrastructure push - spanning national highways, urban metro networks, affordable housing under the PM Awas Yojana, smart cities, and a rapidly expanding renewable energy grid - is creating one of the largest sustained constructions programmes the world has seen. Cement sits at the foundation of every one of these ambitions. As demand grows, so does the expectation that the industry will deliver more: durability, lower carbon, greater consistency, and deeper innovation. At Dalmia Bharat, we see this moment not merely as a commercial opportunity but as a responsibility. The expertise of our people, the depth of our research partnerships, and the inventiveness of our organisation, is being deployed to ensure that as India builds, it builds better.

Innovating for India’s Green Growth Agenda

India has committed to achieving net zero emissions by 2070 and to reducing the emissions intensity of its economy by 45% by 2030. Our innovation agenda is structured around a clear conviction: that the cement required for the next phase of growth must be high-performing and low-carbon. We are pursuing this through parallel streams of research into next-generation binder technologies, functional product innovation, and breakthrough process decarbonisation through close collaboration with leading academic and research institutions.

LC3: A Low-Carbon Binder

Limestone Calcined Clay Cement (LC3) provides opportunity to make cement with 50% clinker. We are conducting rigorous research into LC3 in partnership with academic and research institutions with specialist expertise in cementitious materials science to addresses the practical questions before commercial deployment including systematic characterisation of clay sources and comprehensive testing of physical and chemical parameters along with blending studies. Our goal is to build evidence base robust enough to support responsible, wide-scale deployment thereby contributing directly to the decarbonisation of India’s built environment.

Geopolymer Cement: Industrial By-Products

In collaboration with academic and research partners, our geopolymer research is examining the reactivity and performance characteristics of fly ash and slag from multiple Indian sources, mapping regional variability and its implications for product consistency. In addition, we are also looking at various activator types, concentrations and combinations for their influence on setting behaviour, strength gain and long-term microstructural stability. Further durability studies are also being carried out for chemically aggressive environments, including sulphate-rich soils and marine exposure conditions prevalent across India’s coastline and agricultural regions.

Water-Repellent Cement for India’s Climate Realities

India’s construction environment is among the most demanding in the world. From the high humidity and heavy monsoon rainfall of the coastal states to the flood-prone river plains and the salt-laden air of maritime zones, structures face moisture-related stresses that shorten lifespans and inflate maintenance costs. We are developing water-repellent cement formulations that embed hydrophobic protection within the cement matrix itself, making moisture resistance an intrinsic property of the product rather than an add-on. The development programme is advancing through laboratory formulation, mortar and concrete performance trials, and structured durability assessment.

Made-in-India Carbon Capture and Utilisation (CCU)

Dalmia Bharat is proud to be at the frontier of CCU effort. Selected alongside the Indian Institute of Technology Bombay as a recipient of funding under the Department of Science and Technology’s (DST) Carbon Capture and Utilisation programme, we are in the process of commissioning an industrial-scale test bed at Rajgangpur plant post disbursal of funds to IIT Mumbai from DST, Govt. of India and Dalmia. Over the project cycle, we will optimise the system for conversion efficiency, energy consumption per tonne of CO₂ captured, and the commercial applicability of mineralised outputs. Beyond its direct environmental impact, this pilot is being designed as a proof of concept for carbon capture in Indian cement manufacturing that, if successfully validated, can be deployed across the industry and contribute meaningfully to India’s national emissions reduction goals.

Carbon Credit Markets

We are actively pursuing the domestic carbon market being implemented by Bureau of Energy Efficiency (BEE), Govt. of India and global carbon markets under Paris Agreement (Article 6.2 and 6.4). It further opens up the possibilities to advance on above-mentioned topics and projects where economic, technological, know-how or market barriers exist in developing scale.

Way Forward

The complexity of the challenges we are tackling, from deep materials science to industrial-scale carbon capture, exceeds what any single organisation can address alone. Our innovation model is deliberately open, bringing together the complementary strengths of industry, academia, government research bodies and technology start-ups. These multi-stakeholder partnerships allow us to operate at the frontier of knowledge while sharing the risk and cost of exploration. They also connect us to the global research community, ensuring that insights developed anywhere in the world can find application in the Indian context.

Sustainable Mining and Resource Management

At Dalmia Bharat, mining operations are transitioning towards a more scientific and technology-driven model, where efficiency, resource optimisation, and environmental stewardship are integrated at the point of extraction.

Technology and Operational Efficiency

IoT-enabled Monitoring

Real-time tracking of fleet performance across mining operations.

Optimised Dispatch

Deployment of Operator Independent Truck Dispatch System (OITDS) for efficient routing of dump trucks.

Fleet Electrification

Deployment of test-case EV trucks, with ongoing trials to assess operational feasibility across varying mine depths and gradients.

Resource Efficiency and Circularity

Overburden Utilisation

Ongoing pilots to convert overburden waste into industrial aggregates through specialised cutting and blasting techniques.

Material Optimisation

Blending low- and marginal-grade limestone with cement-grade limestone through scientific mining practices to enhance resource efficiency and extend mine life.

Waste Minimisation

Integration of circular economy principles into extraction and material handling.

Biodiversity and Water Stewardship

Scientific Assessments

Collaboration with CII to conduct biodiversity impact assessments and develop Biodiversity Action Plans (BAPs) for three high-sensitivity sites.

Water Resilience

Use of in-pit water reservoirs, eliminating dependence on external water sources.

Water Recycling

Deployment of Effluent Treatment Plants (ETPs), enabling up to ~80% water reuse within mining operations.

Recognition and Governance

National Environment Award

Recognition for environmental protection at Dalmiapuram-Kallakudi Mines for FY 2024-25.

Environmental Monitoring Excellence

Yadwad & Kunnal Limestone Mine were awarded first prize during the 13th Mines Environment and Mineral Conservation Week.

Regional Recognition

Multiple awards received by Chandrapur Cement Works mines during the 36th Mines Environment and Mineral Conservation Week 2025.

Rehabilitated Quarry and Mines at Rajgangpur, Odisha

Digital Intelligence and Agility (Enabled)

At Dalmia Bharat, digitalisation is a catalyst for smarter, more responsive ways of working. We are reimagining operations through intelligent automation, scalable digital capabilities, and a digital-first mindset that brings speed, precision and adaptability to the forefront. In doing so, we are not only enhancing performance and resilience but are also making our business more agile, in step with a fast-transforming nation.

Building Linkages across

Capital

Intellectual Capital