Dalmia Cement Bharat Ltd., an Indian maker of the construction material, may invest as much as US$1bn to expand capacity, spokesman R. Gurumoorthy said.
The investment may take place over “several years,” Gurumoorthy said in a telephone interview, without providing details of where the funds may come from. “This will be done in a phased manner,” Gurumoorthy said.
Dalmia Cement is expanding as Asia’s third-largest economy boosts spending on building roads, ports and power plants. Prime Minister Manmohan Singh plans to spend 1.79 trillion rupees ($36.5 billion) by March on infrastructure projects in the South Asian nation.
“Investors are finding deep value in the stock,” Jigar Shah, senior vice president and head of research at Mumbai-based Kim Eng Securities India Pvt., said in an interview today.
Dalmia Cement, which has more than doubled this year, gained 6.1 percent to 202.75 rupees in Mumbai trading. The stock has been the best performer on the BSE500 index for the past five days.