27 Dec, EOD - Indian

SENSEX 78699.07 (0.29)

Nifty 50 23813.4 (0.27)

Nifty Bank 51311.3 (0.27)

Nifty IT 43721.4 (0.13)

Nifty Midcap 100 56979.8 (-0.26)

Nifty Next 50 68557.15 (-0.88)

Nifty Pharma 23008.35 (1.30)

Nifty Smallcap 100 18755.85 (0.15)

27 Dec, EOD - Global

NIKKEI 225 40281.16 (1.80)

HANG SENG 20090.46 (-0.04)

S&P 6041.25 (-1.08)

LOGIN HERE

Dalmia Bharat Sugar & Industries Ltd

You are Here : Home > Markets > CompanyInformation > Company Background
BSE Code : 500097 | NSE Symbol : DALMIASUG | ISIN : INE495A01022 | Industry : Sugar |


Company History

Dalmia Bharat Sugar and Industries Limited is mainly engaged in manufacturing of sugar, generation of power, manufacturing of Industrial alcohol and manufacturing of refractory products. The Company was established in 1935 by Jaidayal Dalmia. In the year 1939, the cement unit was started, with the installed capacity of 250 tonnes per day. They manufactured cement by semi-dry process. The machinery used for cement production was imported from Germany. In the year 1949, they installed a 500 tonnes per day wet process kiln supplied by FLS Smidth, Denmark. The company was originally incorporated in the year 1951 with the name Dalmia Cement (Bharat) Ltd.

In the year 1958, the company commenced their Magnesite operations. In the year 1959, the company undertook the expansion in the cement manufacturing plant with installation of another 500 tonnes per day wet process Folax kiln supplied by F L S Smidth, Denmark. In the year 1970, the company acquired Govan Travels.

In the year 1982, the company installed a 200 tonnes Vertical Shaft Kiln using Fuel Slurry process. In the year 1986, the company improved their packaging and presentation by using ply bags for cement. In the year 1987, they used lignite as fuel and reduced their variable cost. Also, they expanded 1500 TPD dry kiln process. In the year 1993, the company started their wind farm. In the year 1997, they commissioned the VRM-Cement Grinding Mill. They completed the 3300 TPD-KHD upgradation in the 2002.

During the year 2003-04, the company installed a new magnetic separator plant at a cost of Rs 30 lakh, which would help recycling of earlier rejected material. The company developed new export markets in the Middle East and South East Asia during the year.

During the year 2004-05, the company received the trial order of Magnesia-Carbon Bricks from the Vizag Steel Plant. In March 2005, they completed the installation of the 27 MW Captive Thermal Power Plant and was commissioned during the year 2005-06. The company expanded the production capacity of cement by 2,266,000 tonnes to 3,500,000. Also, they expanded the production capacity of sugar by 2500 TCD to 7500 TCD. Dalmia Sugar Ltd, a subsidiary company got amalgamated with the company with effect from June 8, 2005.

During the year 2006-07, the company commissioned two bagasse-based co-generation power plants at Jawaharpur and Nigohi - each of 27 MW. These newly installed generation capacities have not only given the company significant operational advantages but also opened new revenue streams. They have signed a Power Purchase Agreement (PPA) with the Uttar Pradesh Power Corporation Ltd (UPPCL).

Dalmia Cement (Meghalaya) Ltd, a subsidiary company got amalgamated with OCL India Ltd pursuant to the orders of the Gauhati High Court vide order dated October 15, 2007. Consequent to this merger, the company acquired 21.7% strategic stake in OCL India Ltd. During the year 2007-08, the company set up two new cement plants at Kadapa (Andhra Pradesh) and Ariyalur (Tamil Nadu) of 2.25 MnTPA each. In December 2008, Eswar Cements Pvt Ltd was amalgamated with the company.

During the year 2008-09, the company increased the production capacity of Cement by 3 MnT to 6.5 MnT. Also, they increased the production capacity of Power from 95.52 million units to 113.52 million units. During the year fourth quarter of the financial year 2008-09, the company commissioned cement plant in Kadapa (Andhra Pradesh) with the production capacity of 2.5 MnT.

During the year 2009-10, the company commissioned the cement plant in Ariyalur (Tamil Nadu) with the production capacity of 2.5 MnT. In January 2010, the company increased their stake in OCL India Ltd from 21.7% to 45.4% through inter-se transfer.

In May 2010, the company and Kohlberg Kravis Roberts & Co L P signed a definitive agreement under which KKR agreed to invest up to Rs 750 crore in the company's wholly owned unlisted subsidiary which will house post restructuring the company's 9 MTPA cement manufacturing capacity.

As per scheme of arrangement, the company de-merged the cement business, refractory business, thermal power business and certain other businesses (collectively the Demerged Undertakings) into Dalmia Bharat Enterprises Ltd. Dalmia Bharat Enterprises Ltd is presently wholly owned subsidiary of the company.

In order to reflect the post restructuring businesses, the name of the company was changed from Dalmia Cement (Bharat) Ltd to Dalmia Bharat Sugar and Industries Ltd with effect from September 7, 2010.

During the year financial year 2010-11, the company installed multi-fuel boilers at Jawaharpur to enable seamless power generation during off-season.

In FY10, 2.5 MnT plant was commissioned in Ariyalur.

In March 2010, the Board of Directors of the Company approved a Scheme of Arrangement between the Company, Dalmia Bharat Enterprises Limited, Avnija Properties Limited and DCB Power Ventures Limited under which certain business undertakings like the refractory, cement and the captive thermal power businesses together with certain subsidiaries were demerged into Dalmia Bharat Enterprises Limited (DBEL), Avnija Properties Limited (now known as Dalmia Cement (Bharat) Limited) and DCB Power Ventures Limited. The said Scheme of Arrangement was sanctioned by the Madras High Court by its order dated 29 July, 2010 and was made effective from 1st September, 2010.

The Company acquired second plant in Maharashtra having capacity of 1,750 TCD in 2014-15.

The Company increased its operational capacity from 5,000 TCD to 7,500 TCD effective from the 2016-17 sugar season at the Kolhapur unit and increased crushing capacity of its Ninaidevi unit from 1,750 TCD to 2,500 TCD in the same season, leading to a total capacity of 10,000 TCD in Maharashtra. The Company's sugar operations were integrated with a distillery commissioned in Maharashtra, which increased distillery capacity to 140 KLPD. Ninaidevi Sakhar Karkhana unit in Ninaidevi was expanded to 100 TCH. Melt clarification process of white sugar manufacture was implemented.

During the financial year 2018-19, Dalmia Bharat Sugar Venture Limited and Dalmia Solar Power Limited ceased to be the subsidiaries of the Company with effect from May 31, 2018. The Company set about doubling its ethanol output from around 3.3 crore litres in FY2017-18 to capitalise effectively on the National Biofuel Policy announced in 2018. In line with the sectoral optimism, the Company invested in a 60 KLPD distillery in Nigohi which commissioned in 2019 and increased its Jawaharpur ethanol plant capacity from 80 KLPD to 120 KLPD.

In 2020-21, the Company expanded Nigohi Distillery from 60 KLPD to 110 KLPD which became operational at expanded capacity; installed sugar refinery at Nigohi Unit; increased sugar diversion to ethanol from 40 KMT during Sugar Season 2019-20 to 60 KMT during Sugar Season 2020- 21.

During 2021-22, the Company doubled its distillery capacity by way of increasing existing capacity and also by setting up new distillery at Ramgarh Unit and increased its sugar capacity at Jawaharpur and Nigohi Units. It commissioned brownfield projects including expansion of capacity at its Jawaharpur and Nigohi Units to 9250 TCD and 9000 TCD, respectively along with refinery at Jawaharpur; also Ramgarh Distillery of 140 KLPD got commissioned and Jawaharpur and Kolhapur distilleries have expanded to 220 KLPD and 120 KLPD, respectively. Uttar Pradesh crushing capacity increased to 24850 TCD.

In 2022-23, Ninaidevi capacity was expanded to 4000 TCD. Grain distillery of 110 KLPD was nstalled at Jawaharpur.

In 2023-24, Company acquired Baghauli Sugar and Distillery Limited having a 3500 TCD plant in Uttar Pardesh effective from December 22, 2023 and commenced business operations. It also expanded the Jawaharpur grain based distillery capacity from 110 KLPD to 250 KLPD. Steam saving project was commissioned at Nigohi Plant.