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CSR is an enabler of aspirations and achievements

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Dalmia Bharat Foundation has an internal monitoring and evaluation wing that provides actionable insights to better execute CSR projects, shares Vishal Bhardwaj, Group Head- CSR, Dalmia Bharat Group and CEO of Dalmia Bharat Foundation.

Please tell us about CSR activities done in Dalmia? Do you believe that it helps in building a strong brand name and good customer base?

It is broadly divided into three buckets. So the first bucket is the livelihoods bucket wherein we work both on the farm and the non-farm sector. The second bucket under climate action is about our work on water and access to clean energy while the third is social development where the focus is largely on infrastructure building. The needs and requirements vary from geography to geography. We try to fill existing gaps in villages around us, be it in the schools, Anganwadis or health facilities. So, these are the three major buckets where we keep our CSR focus.

We sincerely believe that there cannot be a complete disassociation between CSR and business. Water is very important to us. Wherever we have our cement plants, we share the aquifers with the local communities that need water for agriculture and domestic consumption. We do not want to put any pressure on the available water resources. Even though cement is not a very water-intensive manufacturing process, still, even if we draw 1 per cent of water from the aquifers, we want to give back many times of that to the communities. It gives us immense pride to share that Dalmia Cement is almost 10 times water positive. So for every litre of freshwater that we take from the shared resources, we make sure that we create a harvesting and conservation capacity of 10 litres. It ensures the long-term sustainability of the business and acts as a risk management tool to avert any conflicts between us and the communities related to resource sharing.

Further, the cement business is a pretty energy-intensive business. Dalmia is one of the most sustainable and least carbon footprint cement manufacturers. despite that, we do not lose out on any opportunity to offset our footprints. Taking a step further, we also assist communities around us to offset some of their footprints by adopting clean energy solutions. At least 10-15 Kgs of wood is burnt in each household around us in kitchens and one can only imagine the level of carbon emissions and the impact of fumes on the health of women and children. So, we provided them access to fuel-efficient cook-stoves and alternative fuels like biogas and LPGs. Then we saw people burning kerosene for lighting purposes, which is the biggest cause of burn injuries in rural areas. We encouraged such households to switch to solar lighting solutions. Our intent is to make the environment around us as clean as possible. We cannot ignore the issue of livelihood of our stakeholders. Our work on water gives us a good opportunity to work with the farmers on improving their productivity, yield, and therefore income. Besides, in sync with the Skill India initiative, we started to skill individuals who didn?? work on farms with the aim of creating alternative employment opportunities for them.

What were your CSR spending for the year 2020 and 2021? What is the strategy for planning CSR spending?

CSR in Dalmia is more than 80 years old. We started CSR ever since our genesis, even though it was not called CSR back then. But the trusteeship approach was similar to CSR. A decade before the CSR laws were promulgated, we had already established our Dalmia Bharat Foundation and were proactively engaging with our stakeholder communities. Our CSR budgets are driven by program needs. The 2 per cent limit doesn?? restrict us from investing in CSR when it is required. It is a beginning point to ensure that we spend what is mandated. But more often than not, we have actually gone beyond the mandate.

How do you evaluate and monitor CSR activities?

We proactively seek to measure the change brought out by our initiatives. In the last five years, we have carried out some independent assessments. One of the most important of them was the social returns on investment (SROI). We have used it to measure the impact of our work and have seen encouraging results. For every rupee that we invest in the livelihoods and water space, we get a return of about Rs 7 and Rs 3 respectively. We have also undertaken participatory appraisals through independent partners. Recently E&Y conducted an impact assessment of our work on livelihood, skilling and water. This is integrated into our strategy also. We have a theory of change that encompasses what we aspire to do and how do we achieve it. We also have an internal monitoring and evaluation wing that provides us with actionable insights to better execute our projects.

What has been the impact of the pandemic on CSR activities in cement and other industries?

It is noteworthy that we didn?? lose the momentum of what we were doing with respect to the three buckets even during the pandemic. Covid 19 brought in a different kind of challenge and we thought that it was our responsibility to work for all the stakeholders and not just the villages around us. During the first phase of Covid with the national lockdown imposed, we offered shelter, ration and medical assistance to the needy. We contributed financially to the PM Care Funds and various Chief Minister Relief funds. We extended a mix of financial and material support to our stakeholders.

The challenge of the second wave was principally around oxygen supply. We actively set up isolation facilities, Covid treatment centres, supplied oxygen and other medical equipment to hospitals. We believe that vaccination is now key to control the third wave. Due to the digital divide, we helped the villagers in getting registered on the vaccination portal. Eventually, we organised vaccination camps and arranged for their to-and-fro transportation. In the last month (June 2021), we assisted about 17,000 people to get vaccinated and I am sure that we will surpass that number this month.

What kind of feedback do you get from stakeholders in terms of meeting business objectives and how does CSR help in achieving the ultimate business goals of a company?

While the structures that we create for our projects like water harvesting are clearly visible, the need is to go much beyond that. That’s where studies and assessments step in. The E&Y study looked at various indicators to assess the quality of life in our communities. Through the study, we were able to understand whether the spending of the individuals went up, have they shifted from kacha house to pakka house, or has their mode of transportation changed. From a business point of view, many community members look at Dalmia as a potential employer. We absorb many of them into our workforce and provide upskilling opportunities for others to find an alternative source of livelihood. This creates harmony between us and the communities.

What are the key challenges while undertaking CSR activities? What best practices would you recommend overcoming those challenges?

During the initial days, we faced challenges in terms of deciding the organization?? priorities and strategies. We have come a long way from that. Until a decade back, we collaborated with NGO partners who delivered quality work but there was no direct link with the communities. That?? when we decided to capacitate our foundation to forge direct relationships with the people. Today, the Dalmia Bharat Foundation has been able to garner partnerships with communities, government and other corporates. This has enabled us to amplify our work and bring in more resources. We have institutionalised our CSR roadmap for 2030. In 2015, we aligned our CSR objectives with millennium development goals and later incorporated sustainable development goals to ensure that there is continuity throughout. So, there are more opportunities than challenges for us in CSR.

What is your CSR budget and roadmap for the next few years?

In terms of the roadmap, we propose to continue working largely on the issues of livelihood and climate action, with skilling and water being the major focus of these verticals. This is going to be our focus for the next 8 to 10 years, in line with our roadmap for 2030. In terms of the budget, this year our cement business is mandated to spend about Rs 13 crore. But with our ongoing projects, my hunch is that we would be exceeding the budget. Upon adding the contributions of other group companies and our partners, the entire resource pool would be in the range of Rs 40-45 crore.

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Concrete

Cement Makers’ Margins To Fall Rs 50-75 Per Tonne Amid West Asia Conflict

Crisil Sees Margins Easing Despite Steady Demand

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Crisil said operating margins of Indian cement manufacturers are expected to decline by Rs 50-75 per tonne (t) this fiscal to Rs 925-950 per t due to higher input costs triggered by the West Asia conflict. The analysis covered 18 cement companies accounting for nearly 90 per cent of India’s domestic cement capacity and noted margins had improved sharply to around Rs 1,000 per t in fiscal 2026.

Crisil noted that the reduction would be driven mainly by higher power and fuel costs, which account for about 30 per cent of total costs, as petcoke and imported coal prices have surged amid geopolitical uncertainties. Freight costs, which account for about a quarter of total costs, are also expected to remain elevated because of higher diesel prices. The impact on profitability is likely to be more pronounced in the first half of the fiscal year before easing commodity prices moderate cost pressures later.

The rating agency said steady domestic demand and strong balance sheets should keep credit profiles stable despite the moderation in margins. Green energy currently accounts for 35-40 per cent of the sector’s total electricity consumption and is expected to partly cushion higher energy costs. Operating cash flows are likely to remain resilient, supported by projected 6-7 per cent growth in cement demand this fiscal.

Crisil highlighted that demand growth will be driven primarily by infrastructure spending, which meets about one-third of sector consumption, and by a nearly 18 per cent higher budgetary allocation for core ministries that should support project execution. Weaker rural housing demand amid pressure on agricultural incomes from a possible below-average monsoon may be offset by improved urban housing demand supported by favourable home-loan rates and a strong pipeline of Pradhan Mantri Awas Yojana-Urban projects. Ongoing capacity additions will keep capital expenditure elevated and may lift net debt to EBITDA to between 1.2 and 1.4 times from around 1.0 time last fiscal, though ratios are expected to remain healthy.

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Concrete

UltraTech Board Approves Rs 50 bn Fundraise Via NCDs

Company to issue half a million debentures for expansion plan

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UltraTech Cement’s board of directors has approved raising Rs 5,000 crore (Rs 50 bn) through non?convertible debentures issued in rupees.

The finance committee cleared a proposal to issue up to 500,000 fully paid, unsecured, listed, rated, redeemable, rupee?denominated, non?convertible, non?cumulative debentures of Rs 1 lakh each (Rs 0.1 mn each), aggregating to the Rs 5,000 crore programme.

As of June 2026 the firm reported net debt of Rs 15,875 crore (Rs 158.75 bn) and said its capacity expansion projects under execution are backed by capital expenditure of about Rs 17,000 crore (Rs 170 bn) over the next two to two?and?a?half years.

UltraTech spent Rs 9,500 crore (Rs 95 bn) on capital expenditure in financial year 2026 and in April the group crossed 200.1 mn tonnes per annum of domestic grey cement capacity and 205.5 mn tonnes per annum of global capacity.

The chief financial officer indicated the company would take consolidated capacity beyond 242 mn tonnes per annum, with grey cement capacity reaching 212.7 mn tonnes per annum by the end of financial year 2027. He noted the net debt?to?earnings before interest, taxes, depreciation and amortisation ratio stood at 0.87 times as of June 2026 and the company was confident of ending financial year 2027 with the ratio below one time.

In the first quarter of financial year 2026?27 UltraTech’s net profit attributable to owners rose 16.8 per cent year?on?year to Rs 2,599.3 crore (Rs 25.993 bn) and revenue from operations increased 15.9 per cent to Rs 24,648.20 crore (Rs 246.482 bn). The board approval is expected to complement internal cash flows as the company advances its expansion programme.

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Concrete

Lokesh Lays Stone For Rs 31 Billion Cement Unit In Kadapa

Line-2 expansion to make Kadapa a major cement hub

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Andhra Pradesh Education and IT Minister Nara Lokesh on Wednesday laid the foundation stone for the Line-2 expansion of Dalmia Bharat Cement at Chinnakomerla village in Mylavaram Mandal in Kadapa district. The project carries an investment of Rs 31 billion (bn) and is slated for completion by the third quarter of the financial year 2028. The expansion is intended to boost industrial growth and employment generation across the Rayalaseema region.

Once commissioned, the Kadapa facility will become Dalmia Bharat’s largest integrated cement manufacturing ecosystem in southern India, creating over 1,000 direct and indirect jobs and opening new business avenues for regional micro, small and medium enterprises and transport operators. Lokesh said the expansion signalled growing corporate confidence in the state and reflected the practical ease of doing business that secured repeat investment.

He placed the project within the government’s wider economic targets and recalled the Yuvagalam padayatra commitment to generate two million (mn) jobs within five years, noting that the state would cultivate talent while industry created opportunities. Lokesh highlighted Andhra Pradesh’s competitive pursuit of major manufacturing accounts, mentioning past successes and a personal initiative to engage global investors when persuading them to anchor expansion in the state.

The plant will leverage Kadapa’s abundant limestone reserves to scale production and sustainability. Clinker capacity is planned to rise from two point five million tonnes per annum (mn tpa) to six point one mn tpa, while overall cement output will increase from three point six mn tpa to nine point six mn tpa. The unit is designed to operate on over eighty per cent renewable energy and deploy waste heat recovery, zero liquid discharge, water recycling and advanced AI systems to optimise efficiency. Industries Minister TG Bharat, BC Welfare Minister S. Savitha and Jammalamadugu MLA C. Adinarayana Reddy attended the ceremony.

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