en.Wedoany.com Reported - The board of directors of India's Dalmia Bharat has approved a financing proposal totaling up to Rs 40 billion, which will be raised through various financial instruments to expand the company's cement production capacity across India.

The funds will be used to support the company's goal of increasing total capacity to 110-130 million tonnes per annum by fiscal year 2031 through greenfield projects, brownfield expansions, and strategic acquisitions. In the near term, Dalmia Bharat plans to raise its current installed capacity of approximately 49.5 million tonnes per annum to 75 million tonnes per annum, strengthening its business presence in eastern, northeastern, and southern India.

To achieve the financing target, the board has approved various options, including equity financing, qualified institutional placements (QIPs), global depositary receipts (GDRs), American depositary receipts (ADRs), foreign currency convertible bonds (FCCBs), convertible bonds, and other eligible securities.

The company stated that India's cement industry is expected to maintain growth, driven by continued public infrastructure investment, increased private capital expenditure, and rising housing demand due to accelerated urbanization. The company projects domestic cement demand to grow at a compound annual growth rate of 6% to 7% over the next few years.

According to Dalmia Bharat, the funds raised will be used for capital expenditure, repaying existing debt, supplementing working capital, and investing in subsidiaries to support the next phase of expansion and strengthen the long-term growth strategy.

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