Cement – Dalmia Bharat Expands Kadapa Facility With Major Investment Plan
Cement – Industrial development in Andhra Pradesh continues to gain momentum as Dalmia Bharat announces a large-scale expansion of its cement manufacturing operations in Kadapa, reinforcing long-term investment confidence in the state.-
The Andhra Pradesh government marked a significant step toward strengthening industrial growth in the Rayalaseema region on Wednesday as Education and IT Minister Nara Lokesh inaugurated the foundation for Dalmia Bharat Cement’s Line-2 expansion project at Chinnakomerla village in Mylavaram Mandal of Kadapa district. The company plans to invest Rs 3,100 crore in the project, with completion expected by the third quarter of the 2028 financial year.
Expansion Set to Strengthen Regional Economy
After the new production line becomes operational, the Kadapa plant is expected to emerge as Dalmia Bharat’s largest integrated cement manufacturing hub in southern India. The expansion is projected to create more than 1,000 direct and indirect employment opportunities for local residents. In addition, the project is likely to generate business prospects for micro, small and medium enterprises (MSMEs), logistics providers, and transport operators across the surrounding region.
Government Highlights Investor Confidence
Speaking at the event alongside Dalmia Bharat Managing Director and Chief Executive Officer Puneet Dalmia, Minister Nara Lokesh described the investment as a strong indication of growing industry confidence in Andhra Pradesh. He said that while companies may choose a state for their initial investment based on its potential, decisions to expand operations are generally influenced by their actual business experience and satisfaction with the investment environment.
According to Lokesh, Dalmia Bharat’s decision to increase its presence reflects confidence in the state’s governance, administrative efficiency, and policy stability. He noted that such investments send a positive message to businesses considering future projects in Andhra Pradesh.
Focus on Employment and Manufacturing Growth
The minister linked the expansion to the government’s broader employment objectives, saying the project supports the commitment made during the Yuvagalam padayatra to create 20 lakh jobs over five years. He stated that while governments can help develop skilled manpower, industries ultimately play the central role in generating employment and driving economic progress.
Lokesh also referred to the state’s efforts to attract major manufacturing investments. He mentioned that Andhra Pradesh had successfully secured projects such as Royal Enfield despite strong competition from other states. He further recalled visiting Kia’s global headquarters in South Korea, where discussions helped encourage the company’s expansion plans in Andhra Pradesh.
Production Capacity to Increase Significantly
The expansion project will substantially raise manufacturing capacity at the Kadapa facility by making use of the district’s extensive limestone resources. Once completed, clinker production capacity will increase from 2.5 million tonnes per annum (MTPA) to 6.1 MTPA. Cement production capacity is also set to rise sharply from 3.6 MTPA to 9.6 MTPA, making the facility one of the company’s largest production centres in the region.
Sustainability Features Included in New Facility
Dalmia Bharat has planned several sustainability initiatives as part of the expansion. The upgraded unit is expected to operate using more than 80 percent renewable energy while incorporating Waste Heat Recovery Systems to improve energy utilisation. The project will also include Zero Liquid Discharge technology, water recycling systems, and artificial intelligence-based solutions designed to improve operational efficiency and reduce environmental impact.
Leaders Attend Foundation Ceremony
The foundation stone ceremony was attended by several senior leaders and public representatives, including Industries Minister TG Bharat, BC Welfare Minister S. Savitha, Jammalamadugu MLA C. Adinarayana Reddy, senior officials, company executives, and other invited guests. The project is expected to contribute significantly to industrial development, employment generation, and economic activity in the Rayalaseema region over the coming years.