India: Dalmia Cement secures additional 250 acres, raises capacity of Kadapa unit to 9.6 mtpa

• Andhra Pradesh approves 250 acres for Kadapa expansion
• Planned cement capacity rises to 9.6 mnt/year

Dalmia Cement (Bharat) Ltd has secured approval for 250 acres of additional land for expanding its integrated cement facility in YSR Kadapa district, Andhra Pradesh. The state government has revised the project’s planned cement capacity to 9.6 mnt/year from 7.23 mnt/year, supporting a larger manufacturing footprint in the region.

Expansion moves into implementation
The additional land will be allotted across Chinnakommerla and Dugganpalli villages in Mylavaram mandal under the state’s ‘LA for Others’ policy on an actual-cost basis. The project is already moving into its implementation phase, with construction scheduled through December 2027.

Equipment installation is planned between November 2026 and November 2027, while trial production is expected towards the end of 2027. Commercial operations are targeted for January 2028.

Clinker capacity also expands
Earlier project documentation indicates that the expanded facility will have 6.1 mnt/year clinker capacity and 9.6 mnt/year cement capacity. The project also includes additional clinker, cement and waste heat recovery capacity.

The expansion is expected to increase cement manufacturing capacity in the Kadapa region, while creating additional requirements for limestone, energy, water and transportation infrastructure. Movement of raw materials and finished cement is likely to remain important as construction progresses.

Regional supply implications
The project could strengthen company’s manufacturing presence in southern India and add capacity to serve regional cement demand after commercial operations begin.

The state has also directed project vendors and suppliers to register for Andhra Pradesh GST, reflecting the destination-based nature of the tax.

Outlook
Construction and equipment installation are scheduled through 2027, with trial production targeted towards the end of the year. Commercial operations are targeted for January 2028. Once commissioned, the expanded facility is expected to add 2.37 mnt/year of cement capacity over the earlier approved plan, increasing potential regional supply.