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About Dalmia Cement We have cement plants in southern states of Tamil Nadu (Dalmiapuram & Ariyalur) and Andhra Pradesh (Kadapa), with a capacity of 9 million tonnes per annum. A leader in cement manufacturing since 1939, DCBL is a multi spectrum Cement player with double digit market share and a pioneer in super specialty cements used for Oil wells, Railway sleepers and Air strips. We also hold a stake of 45.4 % in OCL India Ltd., a major cement Player in the Eastern Region, and now control a cement capacity of 14.3 million tonnes & has a strong presence in Southern & Eastern Regions of the Country. What makes us unique is our constant ability to innovate. On the key efficiency parameters, we rank right up there with the best in the industry. We have set up over 53 windmills in Muppandal (Tamil Nadu) to generate inexpensive and eco- friendly captive power for our plant. This power is wheeled through the State utility transporter for consumption at the plant. With the plant located close to its source of raw materials, we keep our freight and transport costs low, giving it an edge over competition. Over 65 per cent of the cement consumption in India is catered to by the retail segment where branding and distribution are the critical drivers for leadership. And it is in this that we enjoy an edge over our competitors. We are the only single unit cement manufacturer to successfully market our brands in core markets at prices on par with those of large consolidated/national players. In our focus area of

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Page 1: About Dalmia Cement

About Dalmia Cement

We have cement plants in southern states of Tamil Nadu (Dalmiapuram & Ariyalur) and

Andhra Pradesh (Kadapa), with a capacity of 9 million tonnes per annum. A leader in cement

manufacturing since 1939, DCBL is a multi spectrum Cement player with double digit

market share and a pioneer in super specialty cements used for Oil wells, Railway sleepers

and Air strips. We also hold a stake of 45.4 % in OCL India Ltd., a major cement Player in

the Eastern Region, and now control a cement capacity of 14.3 million tonnes & has a strong

presence in Southern & Eastern Regions of the Country.

What makes us unique is our constant ability to innovate. On the key efficiency parameters,

we rank right up there with the best in the industry. We have set up over 53 windmills in

Muppandal (Tamil Nadu) to generate inexpensive and eco-friendly captive power for our

plant. This power is wheeled through the State utility transporter for consumption at the plant.

With the plant located close to its source of raw materials, we keep our freight and transport

costs low, giving it an edge over competition. Over 65 per cent of the cement consumption in

India is catered to by the retail segment where branding and distribution are the critical

drivers for leadership. And it is in this that we enjoy an edge over our competitors. We are the

only single unit cement manufacturer to successfully market our brands in core markets at

prices on par with those of large consolidated/national players. In our focus area of Tamil

Nadu and Kerala, which are among the fastest growing in cement consumption, we enjoy a

significant market share today. Our brands enjoy a very high recall among consumers and

influencers while our relationships with our dealers are very strong. In fact, in some cases

these relationships go back three generations.

Our USP is innovation, which has given us a leadership position in niche but fast-growing

market segments.

Our Defining Points

Our efforts in sustaining growth with responsibility have merited us many notable awards for

Energy Conservation & Efficiency, Safety, Health & Environment issues from the

Government and other reputed agencies. In 2004, Dalmia became an ISO 14001 Certified

Page 2: About Dalmia Cement

company. Today, we stand as one of the most profitable players in the industry, with

sustainable high margins and strong financial backing our efforts.

Our history

Founded in 1935 by Jaidayal Dalmia; the cement division of DCBL was established in 1939

and enjoys a heritage of 70 years of expertise and experience. We are headquartered in New

Delhi with cement, sugar, travel agency, magnesite, refractory and electronic operations

spread across the country.

The Dalmia Group had established four cement plants in pre-independence years, two of

which were affected by the partition and Independence. The two remaining plants operate as

Dalmia Cement and we have also made strategic investment in Orissa Cements

Limited(OCL). Managed by a professional team, we have sustained the path to innovation

and growth for seven decades.

Early on in our history we learnt that a strong business is an amalgamation of strong

relationships. The key to establishing such relationships is to learn from each other, to enjoy a

spirit of camaraderie, and to recognize and identify with their needs of the people we work

with. Today with their rich experience we have been able to broaden our horizons to include

a holistic approach to the best practices in the industry.

DCBL prides itself on having been at the forefront of pioneering and introducing many new

technologies, which exist today, which are followed by others in the industry. DCBL has

been and continues to be an industry leader in the niche market segments.

This timeline highlights some of the significant moments that took place over the years and

shows how our business has evolved.

Vision & Mission

Vision

To unleash the potential of everyone we touch

Mission

Page 3: About Dalmia Cement

To be in top 2 in all our businesses on the strength of our people and innovation

Our Footprints/Locations

Dalmia Bharat Group has substantial presence in entire South India through its cement

business, and in the northern part of the country as a result of its sugar business. The group is

headquartered in Delhi.

Our Regional Offices & Customer Care Centres

Regional Office for Andhra Pradesh

o Anantapur

o Chittoor

o Guntur

o Hyderabad

o Kadapa

o Krishna

o Kurnool

o Mahboob Nagar

o Nadyala

o Nellore

o Prakasam

o Proddutur

o Tirupati

o Vijaywada

o West Godavari

Regional Office for Karnataka

Regional Office for Kerala

Regional Office for Tamil nadu

Cement Manufacturing Plants

Page 4: About Dalmia Cement

Dalmiapuram

Kadapa

Arilayur

Sugar Manufacturing Plants

DALMIA CHINI MILLS Unit: RAMGARH

DALMIA CHINI MILLS Unit: JAWAHARPUR

DALMIA CHINI MILLS Unit – NIGOHI

Our Essence

The year 1939 saw the establishment of one of India’s first cement plants with an installed

capacity of 250 tonne cement per day-we as DCBL had just arrived. The plant today has

grown by manifolds in terms of capacity. We as a group too have expanded both in terms of

vision as well as business interests ranging from harnessing of the bounty of iron-ore and

magnesite in the country, Travel and export activities. These diversifications were an effort to

build and contribute to the development of basic industrial materials. The year 1993 saw us

foraying into the Sugar business with an installed capacity of 2500 TCD. Today alongwith

the Cement business, Sugar business is one of the key growth engines of DCBL.

Apart from establishing our footprints across various business segments we have also kept up

our pace of excellence. In 1993, DCBL became the first company in South India to obtain

ISO 9002 certification and second in the country among the Indian Cement Plants. In 2004,

we became an ISO 14001 Certified company. Our efforts in sustaining growth with

responsibility have merited us many notable awards for Energy Conservation & Efficiency,

Safety, Health & Environment issues from the Government and other reputed agencies.

Today, we stand as one of the most profitable players in the industry, with sustainable high

margins and strong financials backing our efforts. Our vision which balanced the changing

needs with our corporate imperatives, our organization has grown over the years taking us to

new heights and building onto our strengths. Today we stand on a strong foundation of high

organizational values and business ethics through which we have cemented our growth.

Page 5: About Dalmia Cement

Our business has year on year moved up the value chain with a consistent record of making

profits and paying dividends, making the company financially strong and stable. With a total

income of over Rs 2194 crores DCBL has business interests in two major segments, Cement

and Sugar. Our objective is to grow further and be among the top manufacturing industries

today. In this course, our cement business has grown with an increased production capacity

from 1.5 million tonnes [MT] in the past to the current installed capacity of 9 MT. Also our

sugar business since its commencement in 1994, has grown to have three Integrated Sugar

Mills in the State of Uttar Pradesh with total installed capacity of 22,500 tonnes of cane crush

per day leading to sugar manufacturing of about 300,000 MT per annum, distillery capacity

of 80 KL per day & cogeneration facility. With the launch and commencement of its two

Greenfield projects in the Kadapa district of Andhra Pradesh and Ariyalur in Tamil Nadu

with a total 5MN tonnes capacity, DCBL has expanded its cement footprint in the Southern

India. DCBL also holds a stake of 45.4 % in OCL India Ltd., a major cement Player in the

Eastern Region. Dalmia Cement now controls a cement capacity of 14.3 million tonnes & has

a strong presence in Southern & Eastern Regions of the Country. This parabolic growth in

last few years is a testament of our determination to grow into a leadership position.

Our aim is to sustain the growth that we have witnessed for the past years as well as forge

ahead with the ambitious plan we have envisioned for ourselves with the help of professional

Management team under the guidance of the experienced promoters of the Group.

Quality of our products and Innovation is what has made us, unique in the Indian Cement

Industry. We have given India several vital projects from dams to critical defense

installations and created special cements for special applications with newer and innovative

technologies. This spirit of innovation has fuelled the development of specialty cements for

special needs, – which includes strengthening Airstrips, concretizing Railway Sleepers,

cementing Oil Wells, etc. In this journey of success we have always been the benchmark of

the latest and best technology with an endurance to achieve noteworthy milestones.

The homegrown talent of its people has fueled the commendable growth of the company.

DCBL has been and is committed to its people, and considers them to be vital to our success.

To this end we focus on creating opportunities for growth and diversity for all our employees.

We foster an environment that is supportive of their personal and professional development,

so that they may maximise the opportunity to achieve their career goals.

Page 6: About Dalmia Cement

Being a value based organization our approach has been based on our guiding principles of

mutual respect, dignity, responsibility, ownership, commitment, honesty, initiative,

innovation, collaboration, and faith. This strong foundation is what has been leveraged for

attracting the best talents in the industry for decades to be part of the success and growth.

Looking ahead, the company expects to create leaders at every level, and evolve the company

into a high productivity organization based on its strong ethos. We aspire to create an

organization that will continue to lead and strive to meet the expectations of its customers,

employees and shareholders for generations to come.

Our programmes

DCBL has promoted 3 educational institutions and one Skill Training Centre in this rural area

for the development of youth. It strongly believes that the Nation will be worthy only when

its citizens are educated. All the above institutions cater to the needs of the rural population.

Dalmia Higher Secondary School

This school was started in the year 1950 and offers education from 1st standard to +2

Standard. There are 1900 students studying in this school and teaches in both English and

Tamil media. 60 teaching staff and 15 non- teaching staff support the school. First 3 ranks in

+2 in the Educational district are from this school This school has continuously bagged

championship for all categories of sports for the past 10 years in the Educational District.

This school also is recognized by the District Administration for inculcating saving habits

among the students and teachers and has been awarded as the 'best school' in the District.

Extra auricular activities such as N.C.C., N.S.S. (National Service Scheme), Junior Red

Cross, Scout and Guides are well established.

Vivekananda Matriculation School

This school was started in the year 1989 and offers child-oriented education from L.KG. to X

standard. This school offers education in English medium and is considered a premium

school in this Education District. This School produces 500 students of excellent quality

every year. The school concentrates on co-curricular activities like sports, debate, drawing,

painting, craft and fine arts and the students have won many prizes in inter-school and district

levels. Education of Character development and inculcating moral values among students are

the chief concern of the school management.

Page 7: About Dalmia Cement

Corporate Contributions For Neighboring Schools

Apart from operating the above educational institutions, DCBL is constructing a school in

Palanganatham (neighboring village) with an investment of Rs. 8 lakhs. Further, about

35.schools, noon-meal shelters have been constructed to enable the children to have the food

in a clean atmosphere. Fifteen Schools in the neighbourhoods have been provided with stools,

benches and separators.

Cash Assistance For Poor Students

The Company, through Rotary Club of Dalmiapuram, has been extending cash assistance to

the poor & deserving students. On an average, a sum of Rs. 1.30 lakhs is allocated for the

purpose of education of rural youth.

Industry Educational Institutions Interaction

DCBL also encourages students' visit to its factory to have a firsthand glimpse of factory

situation and also interacts actively with the students and faculty members and apprises them

on the expectations of the industry.

Milestone:

1939

Dalmia Cement Unit was started as venture towards building a self reliant India.

Installed 250 Tonnes per day kiln to manufacture cement by semi-dry process.

Machinery was then supplied by M/s Polysius, Germany

1949

Installed a 500 tonnes per day wet process kiln supplied by M/s F.L.S.Smidth,

Denmark

1958

Magnesite operations commenced

1959

Expansion was undertaken with the installation of another 500 Tonnes per day wet

process Folax Kiln supplied by M/s F.L.S.Smidth, Denmark

1970

Page 8: About Dalmia Cement

Govan Travels acquired

1976

Developed specialty cement for railway sleepers

1981

1st to install raw meal vertical roller mill

1984

Developed specialty cement for oil wells

1986

Introduced poly bags for cement packaging

1989

The only company in South India getting assistance from world bank World bank set

up its Regional Training Centre

1992

Computerized quarry scheduling

1994

Entry into sugar business with capacity of 7500 TCD

2005

Brownfield Expansion of cement capacity from 1.5MT to 3.5MT

2008-09

Integrated 3 sugar plants with total capacity of 22,500 TCD

2009-10

ARIYALUR, in Tamil Nadu commissioned (2.5MT)

Page 9: About Dalmia Cement

Organization

Promoters

JH DALMIA

Mr. J. H. Dalmia, 67, holds a B.E. degree in electrical engineering from

Jadavpur University and a Master's degree in electrical engineering from

the University of Illinois, Urbana Champagne. He has more than 36 years

of experience cutting across various industries which includes wide knowledge and

experience of refractory, sugar and cement businesses.

Page 10: About Dalmia Cement

Mr. J.H. Dalmia has vast experience in research and development having personally received

several patents for the Company's businesses and has been instrumental in establishing the

Company's research and development efforts more than 20 years ago.

YH DALMIA

Mr. Y. H. Dalmia, 64, holds a B.Com (Hon) degree from Delhi University

and is a Fellow Member of the Institute of Chartered Accountants of India.

He has more than 35 years of experience in the cement industry. Mr. Y.H.

Dalmia has served as President of the Cement Manufacturers Association and is a known

figure in the cement industry.

GAUTAM DALMIA

Mr. Gautam Dalmia, 43, holds B.S. and M.S. degrees in electrical

engineering from Columbia University. He has 15 years of experience in

the cement and sugar industries. He was part of the team that led the

diversification of the Company into sugar business in 1994. He was personally responsible

for implementing a new strategy to turnaround the sugar business. He has led the effort to

design and implement the Company's integrated sugar, ethanol and cogeneration business. He

is directly responsible for managing the sugar business and is leading all operations and

execution of cement projects besides providing leadership to the commercial functions for the

group.

PUNEET DALMIA

Mr. Puneet Dalmia, 39, holds a B.Tech. degree from the Indian Institute of

Technology, Delhi and is a gold medalist from the Indian Institute of

Management, Bangalore in strategy and marketing. He has eleven years of

experience in the industry having started his career as the co-founder and Chairman of one of

the most profitable e-recruitment websites in India, JobsAhead.com, which was later acquired

by Monster.com, a Nasdaq listed multinational company. Mr. Puneet Dalmia conceptualized

Page 11: About Dalmia Cement

the growth strategy and governance architecture for the Company to focus on its core

businesses and is spearheading the growth plans for the group.

newthink! DRIVING INNOVATION

Innovation is the ability to improvise, to craft a new and better from a given sub-set of variables. In life initiative we have internalized innovation for over 70 years in processes and systems; and our businesses and mindsets. We began our first cement plant 1939. A first in southern India. We pioneered the craft and production of oil well and railway sleeper cement in India, besides introducing substantial product improvements for Portland/ generic cement. We institutionalized innovation in the our companies through a dedicated Cement and Concrete R&D lab, with state-of-the-art concrete technology, research experts and high end infrastructure : building blocks for the next stage of our innovation story.

Our efforts to innovate are not limited to products; it is manifest across everything we do. The Japanese concept of continuous improvement - Kaizen, is followed for our packaging as well where we try to optimize bag sizes, compositions, strengths, bio-degradability and design in accordance with the weekly cement batches from our plants. Our newly commissioned plants – Ariyalur (Tamil Nadu) and Kadapa (Andhra Pradesh) have been identified and acknowledged as one of the best in Asia for best-in-class technology and robotics which allows us to automate cement sampling and testing. This enables us to conduct a 24X7 monitoring on the quality of our cement with zero error margins. In the field of supply chain and billing we have introduced Enterprise Mobility Solutions that help us keep our inventory database updated on real time basis and enable us to act with speed and priority. Our alliance with Kohlberg Kravis Roberts (KKR), a leading global investment firm helped us Cenable operational optimization and achieving sustainable business.

We cherish our legacy and seek to evolve day-by-day through fresh ideas, perspectives, questions and imagination. Therefore, our motto: Newthink! Driving Innovation.

Dalmia Cement

We have cement plants in southern states of Tamil Nadu (Dalmiapuram & Ariyalur) and Andhra Pradesh (Kadapa), with a capacity of 9 million tonnes per annum. A leader in cement manufacturing since 1939, DCBL is a multi spectrum Cement player with double digit market share and a pioneer in super specialty cements used for Oil wells, Railway sleepers and Air strips. We also hold a stake of 45.4 % in OCL India Ltd., a major cement Player in the Eastern Region, and now control a cement capacity of 14.3 million tonnes & has a strong presence in Southern & Eastern Regions of the Country.

What makes us unique is our constant ability to innovate. On the key efficiency parameters, we rank right up there with the best in the industry. We have set up over 53 windmills in Muppandal (Tamil Nadu) to generate inexpensive and eco-friendly captive power for our plant. This power is wheeled through the State utility transporter for consumption at the plant.

Page 12: About Dalmia Cement

With the plant located close to its source of raw materials, we keep our freight and transport costs low, giving it an edge over competition. Over 65 per cent of the cement consumption in India is catered to by the retail segment where branding and distribution are the critical drivers for leadership. And it is in this that we enjoy an edge over our competitors. We are the only single unit cement manufacturer to successfully market our brands in core markets at prices on par with those of large consolidated/national players. In our focus area of Tamil Nadu and Kerala, which are among the fastest growing in cement consumption, we enjoy a significant market share today. Our brands enjoy a very high recall among consumers and influencers while our relationships with our dealers are very strong. In fact, in some cases these relationships go back three generations.

Our USP is innovation, which has given us a leadership position in niche but fast-growing market segments.

Dalmia Sugar

What we believe in

Sugar sector holds immense potential in providing food & energy security for the country which is going to be one of the most important developmental prerequisites in next 5-10 years. This potential can only be realized with the right mix of regulations, connect with the farmers, modernization and professionalization of the industry. We are working towards making this happen.

About our sugar business

Our foray into sugar business was made in mid-Nineties and first unit of 2500 TCD was set up at Village Ramgarh in Sitapur district of U.P. in 1994. During 2006-07, company embarked on a major growth path by setting up two Greenfield plants at Jawaharpur (Dist. Sitapur, U.P.) and Nigohi (Dist. Shahjahanpur, U.P.) and expanding existing facilities at Ramgarh unit.  The total cane crushing capacity of the company is now 22500 TCD which makes us one of the leading sugar producers in the country.  We are now a fully integrated player with 79 MW of cogeneration capacity & a distillery of 80 KLPD.  We also have facilities for processing of raw sugar.

These state-of-the-art facilities serve as a role model for the industry and have achieved excellence in plant operational metrics and also have a technological leadership position in the industry.  We have robust quality systems and have also embarked upon 5S & TPM initiatives to create world-class systems & processes.

Due to this emphasis on world class systems, we produce sugar of high quality which has found wide acceptance in markets in U.P. & eastern India and institutional buyers such as Pepsi, Coke, Britannia, Bharati Wal-Mart, Parle etc. who have stringent quality norms.

The team has taken a number of initiatives to drive sustainable growth, lasting competitive advantage & efficiencies in all aspects of operations. It has also taken on a proactive role at industry level and has been instrumental in driving many policy & regulatory changes in the

Page 13: About Dalmia Cement

sugar and renewable energy sector.

Sustainable development

This is our guiding principal in the sugar business driving our vision, strategy and actions.

We continue contributing to income & employment creation opportunities in the local economy, infrastructure development, promotion of sustainable farming techniques, improvement of sugarcane yields, propagation of higher recovery sugarcane varieties etc. For improving service delivery to farmers we have leveraged technology - IVRS, SMS based information dissemination systems, Hand-held Terminals at cane purchasing centers and GPS devices for cane survey being a few of these.

We are also credited with pioneering achievements in registration of our cogeneration power projects under CDM (Clean Development Mechanism). All our plants are registered under this mechanism and are helping in global efforts to mitigate impact of greenhouse gas emissions. We produce ethanol which is a green fuel from the sustainable molasses route. From the distillery waste, we produce bio-compost which is organic manure.

At the plant level the constant focus is on energy conservation and energy efficient operations. A bio-methanation plant is being installed at the distillery for energy generation from distillery waste. Water re-use & recycling to minimize fresh water usage is a constant focus area.

Dalmia Power

Dalmia Power

The power business of Dalmia Bharat Group started with the need to meet power requirements of our cement and sugar plants reliably and cost effectively. Accordingly the company developed captive power projects with a total generating capacity of 151 MW, that are supplying power not only to our cement and sugar plants, but also exporting to the State Grid. In a bid to encourage green energy, the group also developed wind power project of 17 MW capacity in the state of Tamil Nadu.

The group has aimed at creating a sizeable asset portfolio in conventional as well as renewable power generation. Accordingly two companies namely, Dalmia Power Limited and Dalmia Solar Power Limited were formed to undertake the development of thermal and solar power generating projects respectively. The Group is aggressively pursuing its expansion plan in power business through incubation of new projects and also through acquisitions.

Conventional Power:Existing Projects

Captive Thermal Power Plants - 72 MW o Two units totaling 45 MW at Dalmiapuram (Tamil Nadu) and 27 MW at Ariyalur

(Tamil Nadu), supporting the cement plants of 6.5 MnT in Tamil Nadu

Under Development Projects

Page 14: About Dalmia Cement

Captive Thermal Power Plants - 27 MW o Developing a 27 MW power plant in Kadappa (A.P.) to support our cement plant (2.5

MnT) Nearly 4000 MW of coal based thermal power projects are under incubation in various

states in India

Renewable Power:Existing Projects

Cogen Plant (Bagasse based, multi fuel) - 79 MW o 25 MW in Ramgarh (U.P.), 27 MW each at Jawaharpur (U.P.) and Nigohi (U.P.); all

supporting our Sugar plants in the same locationo Exporting 2/3rd of power produced to the State Grid

Wind Farm - 16.5 MW o Located in Tamil Nadu ando Selling 100% power to State Grid (TNEB)

Under Development Projects Solar Power Projects with a total capacity of 60 MW are under development in Rajasthan Repowering Existing Wind farm - incremental capacity ~20 MW

o Location : Tamil Naduo Detailed study has been completed to evaluate feasibility of repowering Wind farm

and estimating potentialo Initiating the next level discussions with State power authorities on policy and

approvals

Dalmia Refractory

The Dalmia Refractories is a globally renowned and trusted brand today. Truly world-class

in every way, our client roster reads like the who's who of the cement industry in India, and

also includes leading global organizations.

 Shri Nataraj Ceramic and Chemical Industries Limited (SNCCIL), is a pioneer in Alumino-

Silicate refractory products, with about 40 years of operations. It is the market leader with

about 50% share in Alumina bricks for Cement Industries in India. All major cement houses

are our satisfied customers.

SNCCIL is one of the oldest and foremost suppliers of refractories to cement plants in India,

which happens to be the world's No.2 cement producing country. (Another Group Company

OCL, has facilities to manufacture 1 lac tonnes of refractories per annum in Orissa, and caters

mainly to the steel and glass industries). In FY11, the Group Turnover of Dalmia refractory

businesses was INR 4,600 Mn (US$ 100 Mn).

SNCCIL is a total solution provider capable of handling turn-key projects for brown field &

Page 15: About Dalmia Cement

green field cement projects. In pursuit of growth, SNCCIL is also entering other consuming

industries such as Steel, Sponge Iron and Glass

SNCCIL is a total solution provider capable of handling turn-key projects for brown field &

green field cement projects.

In pursuit of growth, SNCCIL is also entering other consuming industries such as Steel,

Sponge Iron and Glass

 OPERATIONS

SNCCIL has geographically spread-out operations in Tamil Nadu, Gujarat and Madhya

Pradesh states to provide refractories solutions to customers with fast response.

 Dalmiapuram Works

This mother plant has a capacity of 50400 TPA.

During the year FY 10-11, 49500 MT (Previous year 48800 MT) of refractories was

manufactured at Dalmiapuram Works & its products are marketed by Dalmia Bharat

Enterprises Ltd., a Group Company.

 Khambalia Works

This plant has a capacity of 42000 TPA.During the year FY 10-11, 37300 MT (Previous year

37700 MT) of refractories was manufactured at Khambalia Works.

 Katni Plant

State of the art Monolithic plant having an annual capacity of 12000 MT has been

commissioned at Katni, in September, 2010.

 Wankaner Works

The Company in order to expand its capacity has started production in Feb,2011 at a new

Refractory Manufacturing Plant having capacity of 10,800 MT in addition to existing

facilities of 7000 MT p.a. production capacity at Wankaner.

Page 16: About Dalmia Cement

Dalmia Innovation

Dalmia Cement, a pioneer in the Indian Cement Industry has consistently innovated and offered customers best-in-class products for more than 70 years.

The Quality of our products and Innovation is what has made us unique in the Indian Cement Industry. We have given India several vital projects from dams to critical defence installations and created special cements for special applications with new and innovative technologies. This spirit of innovation has fuelled the development of specialty cements for special needs, which includes strengthening Airstrips, concretizing Railway Sleepers, cementing Oil Wells, etc. In this journey of success we have always been the benchmark of the latest and best technology with an endurance to achieve noteworthy milestones.

Amongst the Many Firsts from Dalmia Cement are :

The first cement company in India to introduce energy-efficient vertical roller mills which have now become the industry norm

The first plant in TN to introduce pre-calcinator technology The first plant in south India to get IS/ISO 9002 quality cement certification

 

CEMENT & CONCRETE R&D LAB – AN EXPRESS WAY TO CUSTOMER ORIENTATION

Customer delight has always been the bottom line of Dalmia Culture and taking this thought forward, when we found out that our customers need support to overcome concrete related difficulties and achieve best results in construction, while our prestigious products are used for varying types and grades of concrete (under ever fluctuating site conditions), we were inspired to go for an R&D Lab dedicated to Cement & Concrete.

The facility comprises of various sections like customer cell, chemical, physical, and concrete lab, is a landmark in its own right. It is fully equipped with state-of-the-art machinery for complete tests of concrete, cement and aggregates.This R&D lab focuses on solving practical problems faced by customers regarding concrete and cement help propagate good concrete practices. The Lab explores innovative means to exceed the customer expectations through research work. This is also an arena for internal & customer training.With this, we have set out on the high road to excellence and we strongly believe that we are very close to a path breaking approach to arrive at excellence. In fact, Dalmia cement is the first cement manufacturing company to set up an R&D lab for concrete in the country!

Board of Directors for DBSIL

BOARD OF DIRECTORS

Page 17: About Dalmia Cement

Name of the Director Address

Shri J. H. Dalmia (Vice Chairman)

No. 1, Tees January Marg, New Delhi -110011

Shri Y. H. Dalmia(Vice Chairman)

18, Golf Links,New Delhi- 110 003

Shri Gautam Dalmia(Managing Director)

No.1, Tees January Marg, New Delhi- 110 011

Shri Puneet Yadu Dalmia(Managing Director)

18, Golf Links, New Delhi- 110 003

Shri T. Venkatesan5, Krishna Kutira, 11/4,

Harrington Road, Chetpet, Chennai- 600031

Shri M. RaghupathyF-109, Anna Nagar (East),

Chennai-600102.

Shri J. S. Baijal224, Sector 15-A,

Noida-201301. (U.P.)

Shri B.B. MehtaB-9/6451, Vasant Kunj,

New Delhi-110070

Shri Panchapakesan Kannan

7, Baywatch Blvg(Boulevard), Kaveri Nagar, Kottivakkam,

Chennai-600041, Tamil Nadu

Board of Directors DBEL

Board of Directors DBEL

Name of the Director AddressMr. J.H. Dalmia

Managing DirectorNo.1, Tees January Marg,

New Delhi- 110 011Mr. Y. H. Dalmia

Managing Director18, Golf Links,

New Delhi- 110 003

Mr. Gautam DalmiaNo.1, Tees January Marg,

New Delhi- 110 011

Mr. Puneet Yadu Dalmia18, Golf Links,

New Delhi- 110 003

Mr. N. GopalaswamyFlat No. C-1, 5A, Ramachandrapuram,

Tennur, Trichy -620017

Mr. P. K. Khaitan

Emerald House1B, Old Post Office Street

Kolkata- 700 001

Mr. Bharat Anand

1, Jaipur EstateNizamuddin East

New Delhi-110013

Page 18: About Dalmia Cement

Mr. Donald M. Peck

Flat No. 314,8 Dean Ryle Street,London SW1P4DA

Mr. V.S. JainB-12, 2nd Floor,

Saket, New Delhi - 110017

CSR MISSION

We are committed to creating exceptional value for  our customers, employees, shareholders, vendors and the communities we operate in and above all the nation, through our core values of Learning, Excellence, Teamwork and Speed

A message from our Managing Directors

Corporate Social Responsibility (CSR) as a western concept looks upon itself as a business imperative for generating good will for the business amongst different stakeholders.  While we do not deny that doing good for the society will ultimately have positive impact on the business, this is not the prime driver behind our endeavors in this space. Philosophically, for us, our understanding of corporate responsibility towards society has its roots in our tradition, culture and ethos.

Sharing our good fortune and income with the needy and less fortunate is an integral part of all major religions of the world. India, one of the oldest civilizations of the World, has a 5000 year old tradition where the blessed and the more fortunate sections of the society took care of the societal welfare. We at Dalmia Bharat Group, believe in the concept of giving back and sharing with Society. And for more than seven decades, we have followed this concept of giving back and sharing with the under privileged sections of the society.

Our CSR programmes are centered on livelihood, children and education, and basic healthcare. We are operational in 30 villages, touching a population of over 50,000 people. During the financial year 2010-11, our programmes directly benefitted almost 15,000 people, the details of which are available in this report.  

During the financial year 2010-11, Indian economy, on the back of excellent performance in agriculture, clocked 8.5% GDP growth. On the Human Development Index, India has moved 13 positions in the last 2 years from 132 in 2009 to 119 in 2011 (Human Development Report 2010, UNDP). Despite these encouraging developments, India continues to have millions of its citizens officially below the poverty line. It would take perhaps a decade of current pace of growth before we would be in a position to say that India is well on its way to be a developed country.

Keeping this background in view, we at Dalmia Bharat Group stay committed for bringing down the incidence of poverty and suffering in the villages around our plant locations. We would also like to take this opportunity to reiterate our commitment towards society and environment as a responsible corporate citizen.

We as responsible Corporate Citizens are committed to working closely with government, non-governmental agencies, and all other stakeholders to play our role in lending support to

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the collective development efforts to ensure that India and Indians can report inclusive growth and prosperity.

The corporate sector in India is also waking up to the realities of environmental challenges such as climate change and global warming and how they can adversely affect us all in the years to come. We are committed to managing our business operations responsibly to ensure that we have a net positive impact on the environment.

In conclusion, we would like to reiterate our commitment to play an active role in partnership with all key stakeholders for making this world a better place for all.

Mission and Our Approach

Our Mission

We are committed to being catalysts in the transformation of the communities around our business operations through partnership with local communities, government, NGOs and other stakeholders

The CSR Mission of DBGF is derived from the Values Pledge of Dalmia Bharat Group which states

“We are committed to creating exceptional values for our customers, employees, shareholders, vendors and the communities we operate in and above all the nation, through core values of Learning, Excellence, Teamwork and Speed”

Our Approach

There are 2 simple components of our approach :

1. Making significant and sustainable difference

Our CSR approach is distinct from Charity where out of compassion help is given to poor and needy. While we acknowledge the power of charity, DBGF because of its focus on making a significant and sustainable difference, develops its programmes that make a long-term difference in the lives of its targeted beneficiaries.

2. Forging Partnerships

We at DBGF firmly believe in the power of partnerships and thus work closely with a diverse set of stakeholders

Local Community and Representatives

All our programmes start with a needs assessment done by closely involving the local community and village leaders. Subsequently we involve the local leaders both at the time of formulation and implementation of the programmes.

Non-Governmental Organisations

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Our programmes are implemented by reputed national and international NGOs, who have extensive experience of working with the poor and rural households in the areas of livelihood, education and health and hygiene.

Government

We believe that we can be a bridge between the Government and rural poor in our targeted villages. We are collaborating with state rural development department, district administration and departments like animal husbandry, agriculture, health etc as also development institutions like NABARD.

Dalmia Bharat Group Foundation

Dalmia Bharat Group Foundation is a registered not-for-profit organization set up under the Indian Trusts Act 1882 promoted by Dalmia Bharat Group comprising Dalmia Bharat Enterprises Ltd. (DBEL) and Dalmia Bharat Sugar and Industries Ltd. (DBSIL).

DBGF will continue the legacy of Dalmia Bharat of delivering results for the stakeholders for more than eight decades. We will work towards the fulfillment of the socio-economic needs of the society in as broad a manner possible while focusing on significant issues such as health and livelihood.

DBGF is the corporate social responsibility arm for DBEL, DBSIL and group companies. We will fulfill the aspirations of our donors in serving the interests of the community, while ensuring that our activities act as a bridge to the services of government and non-government institutions. Our belief is that every human being deserves the basic necessities of life and towards this we will work and collaborate with all development participants.

DBGF is headed by Mr. Anil Sainani as the CEO of the Foundation. The Foundation is governed by a group of committed trustees.

Board of Trustees

Puneet Dalmia, Managing Director, Dalmia Cement Bharat Ltd., and Dalmia Bharat Sugar and Industries Ltd.

Mr. Puneet Dalmia, 35, holds a B.Tech. Degree from the Indian Institute of Technology, Delhi and is a gold medalist from the Indian Institute of Management, Bangalore in strategy and marketing. He has eleven years of experience in the industry having started his career as the co-founder and Chairman of one of the most profitable e-recruitment websites in India, JobsAhead.com, which was later acquired by Monster.com, a Nasdaq listed multinational company. Mr. Puneet Dalmia conceptualized the growth strategy and governance architecture for the Company to focus on its core businesses and is spearheading the growth plans for the group.

Gautam Dalmia, Managing Director, Managing Director, Dalmia Cement Bharat Ltd., and Dalmia Bharat Sugar and Industries Ltd

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Mr. Gautam Dalmia, 40, holds B.S. and M.S. degrees in electrical engineering from Columbia University. He has 15 years of experience in the cement and sugar industries. He was part of the team that led the diversification of the Company into sugar business in 1994. He was personally responsible for implementing a new strategy to turnaround the sugar business. He has led the effort to design and implement the Company's integrated sugar, ethanol and cogeneration business. He is directly responsible for managing the sugar business and is leading all operations and execution of cement projects besides providing leadership to the commercial functions for the group.

Sanjay Mittra, TrusteeHe is a B.com (Hons) graduate & Chartered Accountant (FCA) from the ICAI and joined the organization in 1983. He has 24 years of experience in financial management. He is responsible for resource mobilization and has been associated with funding of all Capex programs undertaken by the Company since 1983-84 including modernization/ expansion of the Cement Unit and setting up of new sugar plant. He has been arranging long-term loans and finance for Working Capital. He is also responsible for resource deployment for maximization of returns.

Anil Sainani, Managing Trustee and Chief Executive OfficerMr. Anil Sainani's varied educational qualifications include a Post Graduate Diploma in Public Policy and Management from IIM Bangalore with an overall "A" grade, Post Graduate Diploma In Business Management along many other such qualifications. He has rich and varied work experience in Government of India (Ministry of Railways, Ministry of Environment & Forests) and Public Sector Undertakings (Delhi Metro Rail Corporation).

Our Locations

Our programmes cater to the community of villages in and around our plant locations in Tamil Nadu, Andhra Pradesh and Uttar Pradesh. Besides, we also work in Sedam taluk of Gulbarga district in Karnataka, a state we highly regard as critical for cement and sugar industries, our mainstream business areas. Our programmes indirectly touch almost the entire population of these villages.

Tamil Nadu

Trichy - 5 villages covering a total population of about 27,000 inhabitantsAriyalur - 4 villages covering a total population of around 5,500 people.

Andhra Pradesh

Kadapa - 4 villages covering nearly 6,000 people

Karnataka

Gulbarga - 5 villages - 250 livelihood beneficiaries, touching around 1,000 lives

Uttar Pradesh

Sitapur - 12 villages comprising of almost 20,000 people

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Children and Education

Dalmia Higher Secondary School

From its inception in 1950, the Dalmia Higher Secondary School (DHSS) has endeavored to educate the local population as well as the Dalmia Bharat employees through high quality education.

In the entire Lalgudi Educational District, DHSS is the first school to be accredited with 5-star status by the Bharathidasan University. With a current strength of 1850 students, the school has consistently delivered results at an average 99% in 10th and 96% results in 12th standards respectively for the past five years.

In the Scouts & Guides programme, 5 students were awarded the prestigious Rashtrapati Award & 18 received the Rajya Puraskar Awards.

The Vivekananda Matriculation School

Since 1989, Vivekananda Matriculation School (VMS) has been meeting the requirements of the public in and around Dalmiapuram, to offer the best in school education.

VMS is providing English medium education with a very nominal fee structure that is affordable by all section of the society. As many as 540 students benefit from the best available coaching in academic and extracurricular spheres, which include Yoga and group recitation of verses from sacred texts and prayers to develop spiritual faculties of children, besides Hindi language classes, sports and culture. The school has the distinction of producing 100% results in 10th standard regularly.

Other Achievements

At our cement locations, we have been able to reach to almost  200 beneficiaries. 110 children were given merit awards. 30 illiterate were enrolled in the adult education programme.  54 children completed computer education.  Our education programme’s target is to ensure zero drop out and 100% school attendance for children up to 14 years of age.

At our sugar locations, 420 children are undergoing remedial education programme that will substantially improve their performance in subjects. This year we have expanded our CSR programmes to all our 3 sugar plants.

Livelihood And Income Generation

1)    Ramakrishna Dalmia Industrial Training Institute 

Empowering Individuals With Skills for A Better Life. To enhance the employability of the rural youth of the nearby villages of Dalmiapuram, in the year 1992, Shri Ramakrishna Dalmia Industrial Training Centre (SRD ITC) was established. Since its inception the institute has been developing basic technical skills of high relevance thereby meeting the requirement of the industry and enhancing employment opportunities for the rural youth. In any given batch, at least 60 students are

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trained in trades of: Instrument Mechanic, Motor Vehicle and Fitter. A Centre of Excellence today, the Institute has produced 98% results on an average in the last 3 years.

2)    Dalmia Institute of Construction

A serious and clear demand-supply mismatch is visible in the construction skills and employment of youth, particularly rural youth. We realized that we could make a small contribution in this area by training eligible youth on supervisory skills for construction sector jobs. And, thus Dalmia Institute of Construction, or DIC, was established in 2008 at Thillainagar in Trichy.

Through a series of practical sessions in our own construction sites, students are trained on best practices in all essential civil construction methods and cement applications. The students also learn about latest manufacturing technologies during their exposure visits. We ensure 100% placement of the trainees through follow-up with industry and campus interviews. Our students have been placed in the range of Rs. 7,000 to Rs. 9,000 per month as supervisors.

Due to the success of our institute in Trichy, we plan to start fresh batches in the cities of Madurai and Coimbatore.

Health and Sanitation

Basic Health -  

With the approach of bridging the gap in accessing welfare measures offered by the government and needs of the community, we designed our programme in such a way that our varied health interventions could percolate through to the last tier of the society. Since our founding we have made impressive progress in improving the health conditions of the people by reaching to them in some of the remotest locations.  So far, we have organized many health awareness programmmes, camps for ante natal, post natal care/treatment, screening camps for diabetes, dental hygiene and cardiac care and substantial awareness created on preventable diseases. As a result, in about 26 villages across all cement and sugar locations, we have directly or indirectly been able to touch the lives of almost 60,000 people.

Our diverse health programmes through camps, immunization and post/pre natal care, weekly clinics and collaboration with primary health care have benefitted and saved the health of women and children. Dedicated efforts are made to bring incidence of diabetes and BP to medical attention. We also worked to raise awareness on day to day health care and thereby reducing the percentage of opportunistic and seasonal infections people in rural areas generally face. More than 500 beneficiaries received regular and routine medical and health attention including seasonal diseases and illness, resulting in improved healthcare and well being. Special consideration was given to the programme of Maternal and Child Health Care across all locations.

More than 400 beneficiaries, including 250 women and children were provided special medical attention (Ante and Post Natal Care), immunization and nutrition, as part of the government programme. In Jawaharpur (Uttar Pradesh), Nutrition and Health Day is celebrated regularly where pregnant women and children upto the age of 5 years are immunized to fight against all vaccine preventable disease.

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Sanitation & Health Awareness – Construction of 154 toilets in Kadapa  has resulted in improved health and behavior practices. In particular, this has reduced drudgery for women and girls.

Energy Conservation and Environment Management

The Go Green Drive Each year, our manufacturing plants are assigned with a theme by the organization and an award has been instituted, called Managing Director's Awards, for best performance on the theme.

For the year 2010-2011, the theme was Go Green with the clear objective of greatly enhancing our efforts on environmental performance.

Tree Plantation Drive In Dalmiapuram, Tamil Nadu, approximately 14,000 trees have been planted to increase the green cover. We also involved the supply chain in the programme and 265 trees were planted by dealers. 11,000 sq. mtr area has been converted into a lawn with plants and trees

At Nigohi, 5,000 new plants have been developed in residential and unused areas within the Plant premises. In Ariyalur, Tamil Nadu 40,000 trees have been planted around plant location to maintain ecological balance. In order to nurture a green belt 25,000 trees were planted to make the plant a green belt development area in Kadapa, Andhra Pradesh.

20,000 saplings of Jatropha have been planted in the waste lands of our mines, to be used as feed stock for biodiesel as well as in the kiln as an alternate fuel.

Waste Utilization and Management

In Dalmiapuram, as part of Responsible Industrialisation initiative 18.9 metric tons of waste plastics were collected from the residential areas, plant & neighboring villages and used in our Kiln to save 56 million kilo calories of energy.          At Nigohi, efforts have been made towards develop A Zero-Waste Society. In this direction, the waste material are segregated & disposed off as per standard norms

In Ariyalur, Value from waste was created by segregating the waste into different forms and recycled into making compost and vermi culture.

Water Conservation Management

At Nigohi, there has been a reduction in the amount of water that was sourced for our plant operations as well as in the release of effluents. Between different plant activities, a total of 1,000 cubic meters per day is saved. Similarly in Dalmiapuram, a rain water harvesting capacity of 20,000 cubic metres has been created in our abandoned mines. This has helped recharge ground water and avoid water inundation.

In Ariyalur, Several streams of water have been connected through a common channel to a pond size of 40,000 cubic metres. This has helped recharge ground water thus improving

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energy efficiency as well.

The water filtered out of the RO system is recycled and used for watering the plants. Similarly, waste water from boiler is used for running critical plant operations saving precious water and energy otherwise used for bore wells.

A very similar effort in Kadapa resulted in harvesting water of 100,000 cubic metres. As the borewell power is no more used by people for drawing water, this has also resulted in energy saving of 1,000 units of power per day. Besides, the Kadapa plant now only uses waste water from the sewage treatment plant (STP) for cement production process instead of fresh water. This has saved precious water and has resulted in power saving of 250 units per day. We estimate, on a per day basis, we bring down the carbon emission to at least 250 kilogrammes due to the reduced usage of power for drawing water.

Our Initiative

We now only use waste water in our cement production process which saves considerable amounts of fresh water. Usage of Sewage Treatment Plant water has resulted in savings of 250 units of water per day, equivalent to a reduction in CO2 emission of 250 kilogrammes a day.

Sustainable Development and Clean Development Mechanism (CDM)

In the financial year 2010-11, Jawaharpur project of the company was registered as a CDM project.

With this, the company has taken another giant stride towards contributing to climate change mitigation and sustainable development at a global level. Our sugar plant at Ramgarh project is already registered and we expect to get our third sugar plant in the state of Uttar Pradesh, Nigohi, also registered during FY2012. These three projects combined will result in annual reduction of over 100,000 MT of CO2 emissions.

Environmental Monitoring, Training & Awareness

At our Ariyalur plant location, a weather and environment monitoring system has been installed for online weather monitoring which measures temperature, relative humidity, wind direction, wind velocity and rainfall. All our plant locations impart regular training to all employees on environmental aspects.

Basic Infrastructure     Our Initiatives

Rapid urbanization over the last five decades is changing our country’s landscape and also generating formidable challenges for supplies of water and basic infrastructure, it has been our honest endeavor to deliver reliable and quality infrastructure thereby creating a better living standard.

Community Infrastructure initiatives in Brief:

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1)    In villages in and around CSR implementation villages, Dalmia has had funded for the laying, paving and maintenance of Building of roads thud help in safe and easy commuting of the community.2)    Our financial contribution has helped in the construction of a tube well along with a pipeline spanning 2 kilometers in length in one of the nearby villages in Andhra Pradesh.3)    Construction of Community Centre/building for preschool kids in Palinganatham village.4)    Provided funds for the construction of a rehabilitation centre for street and destitute children.5)    Have donated brand new musical instruments for poor and needy children interested in learning music.