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In-Depth SWOT Analysis of Dalmia Bharat – An Indian Conglomerate Company

by | Case Studies | 0 comments

Previously we looked at the elaborated SWOT analysis of Kesoram Industries, One Of The Pioneer Companies In India. Now, let us hop over and look at the elaborated SWOT Analysis of Dalmia Bharat.

It is one of India’s largest conglomerates in the cement industry, with interests in sugar mills, cement plants, chemical factories, engineering plants and a paper mill. The company is best known for its cement and sugar business.

Another aspect that made Dalmia Bharat the giant is its marketing efforts. As the world goes web-based, showcasing is changing, and assuming you are keen on finding out about the most recent – look at our Free MasterClass on Digital Marketing 101 by the Founder and the CEO of IIDE, Karan Shah.

Do you want to learn how Dalmia Bharat became so successful in the conglomerate industry? So in this blog, we are going to learn about the SWOT analysis of Dalmia Bharat and more about the company.

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About Dalmia Bharat,

SWOT Analysis of Dalmia Bharat

The Dalmia Bharat Group was innovated in 1939 by the late Shri Jaidayal Dalmia. They deal in different sectors such as cement, refractories, and sugar. The all-out turnover of the gathering is over ₹10,000 crore. The Group operates the subsequent businesses, all registered in Tamil Nadu.

  • Dalmia Cement Bharat Limited: began working in 1939, in Tamil Nadu
  • Dalmia Bharat Sugar and Industries Ltd: began working in 1994, in Uttar Pradesh
  • Dalmia Refractories: works units in Gujarat and Madhya Pradesh
  • Dalmia Power: laid out to meet the power prerequisites of the Group’s concrete and sugar plants

The growth has been exponential within the last five years and is slated to take care of its robustness through continued focus, corporate social responsibility, a new brand identity, and socio-cultural projects. In the last decade, the group’s sales have grown at a CAGR of 24% to over ₹12,100 Crore within the year 2020. The market cap has likewise developed to ₹10,000 Cr in the year 2020.

Quick Stats on Dalmia Bharat
Founder Jaidayal Dalmia
Year Founded 1930
Origin Kolkata, India
No. of Employees 99,000+
Company Type Public
Market Cap Rs 30,358.41 Crore (2022)
Annual Revenue Rs 2.73T Crore (2021)
Net Income/ Profit Rs 95 Crore (2021)

 

SWOT Analysis of Dalmia Bharat - sugarSWOT Analysis of Dalmia Bharat - dalmia-ppc-cement


Products & Services by Dalmia Bharat

  • Refractories
  • Sugar
  • Cement


Competitors of Dalmia Bharat

  • JK Lakshmi Cement
  • Dyckerhoff
  • Taiheiyo Cement
  • LafargeHolcim
  • Binani Industries


As now we have a better understanding of Dalmia Bharat, let’s look into the SWOT Analysis of Dalmia Bharat.


SWOT Analysis of Dalmia Bharat

A SWOT analysis identifies a company’s strengths, weaknesses, opportunities, and threats. A proven and true management paradigm that allows Dalmia Bharat to compare its business and performance with competitors and the industry as a whole.

SWOT Analysis of Dalmia Bharat - SWOT Infographics of Dalmia Bharat

So let us go ahead and first have a glance at the strengths of Dalmia Bharat from the SWOT analysis of Dalmia Bharat.

Strengths of Dalmia Bharat

Your organisation’s strength is something that makes it stand out from the rest. It can be a competitive advantage that sets it apart from its competitors. Some of the strengths of Dalmia Bharat are as follows –

  • Strong Free Cash Flow: There is a strong free cash flow and Dalmia has an annual revenue of 2.73T crores that puts resources into the hands of the company to expand into new projects. 
  • Good ROI: It is relatively successful in new projects including trailblazing infrastructure that can scale and support growth and provides a high return on capital expenditures through the creation of new revenue streams.
  • Strong Brand Portfolio: Over the years Dalmia Bharat has invested in building a strong brand portfolio and from Kolkata, it has reached the homes of millions of customers across 100 countries. This brand portfolio can be very useful if an organisation wants to expand into new product categories. 
  • Outstanding Performance in New Markets: Dalmia Bharat has accumulated experience to enter new markets and achieve success. The expansion has helped organisations create new revenue streams and diversify business cycle risks in the markets in which they operate. 
  • Highly Skilled Labour: Highly skilled workforce through successful education and training programs. By investing enormous resources in the training and development of Dalmia Bharat employees, they not only create highly qualified employees but also motivate them to achieve more. 
  • Mergers and Acquisitions: A track record of successfully integrating additional companies through mergers and acquisitions. Over the past few years, he has successfully integrated several technology companies to optimise operations and establish a stable supply chain.


Weaknesses of Dalmia Bharat

Strategy is all about choices and weaknesses are areas where companies can improve through SWOT analysis and leverage their competitive advantage and strategic positioning.

  • More Investment is Needed in New Technologies: Given the scale of the expansion and the multiple geographic regions in which the company will expand, Dalmia Bharat’s overall integrating processes require more money to be invested in technology. Current investments in technology are not aligned with the company’s vision. 
  • Financial Planning is Not Being Performed Properly and Efficiently: The liquid asset ratio and liquidity ratio indicate that a company can use its cash more efficiently than it currently is. 
  • High Labour Outflow: With higher dropout rates compared to other organisations in the industry, Dalmia Bharat, and has to spend significantly more on employee training and development than its competitors. 
  • Not Very Successful in Integrating Companies with Different Work Cultures: As mentioned earlier, Dalmia Bharat is successful at integrating small companies. It has its share of failures to merge firms that have different work cultures.
  • High Competition: The daily stock is high compared to its competitors, so the company has to raise more capital to invest in the channel. This could affect the long-term growth of Dalmia Bharat.
  • Product Marketing: Although the product is successful in terms of sales, its positioning and unique selling proposition are not clearly defined, making it vulnerable to attack from competitors in this sector.


Opportunities for Dalmia Bharat

Opportunities are potential areas for companies to focus on to improve results, increase sales, and ultimately profit.

  • New Environmental Policy: New opportunities will create a level playing field for everyone in the industry. This is a great opportunity for Dalmia Bharat, Inc. to realise the benefits of new technologies and gain market share in new product categories.
  • New Taxation Policy: New tax policies can have a significant impact on the way Dalmia Bharat does business and open up new opportunities for them to increase its profitability.
  • Open New Markets Through Government Agreements: New technology standards and government free trade agreements provided to Dalmia Bharat open up opportunities for Dalmia Bharat to enter newly developed markets. 
  • New Customers Through Online Channels: The company has invested huge amounts of money in its online platform over the past few years. This investment opened up a new sales channel for Dalmia Bharat. Over the next few years, companies will be able to seize this opportunity by better understanding their customers and meeting their needs through big data analytics.
  • Expected Growth: Dalmia Bharat Refractories eyeing 20-25 per cent growth in business in FY23 and this growth will immensely benefit the company in terms of revenue growth.
  • Economic Recovery: Economic recovery and rising consumer spending after years of recession and slow industrial growth are opportunities for Dalmia Bharat to attract new customers and increase market share.


Threats to Dalmia Bharat

Threats are environmental factors that can harm a company’s development. Here are some of Dalmia Bharat’s threats:

  • Legal Actions: The company may face legal action in other markets given the continuing fluctuations in different laws and product standards in those markets.
  • Fierce Competition: Strong profitability has increased the number of players in the industry over the past two years, putting downward pressure on overall revenue as well as profitability.
  • Liability Laws: Vary from country to country Dalmia Bharat may face a variety of liability claims as a result of these market policy changes. 
  • Quantitative Increases in Commodities: This could jeopardise Dalmia Bharat’s profitability. A shortage of skilled labour in certain global markets threatens Dalmia Bharat’s continued earnings growth in the market.
  • Operates Globally: Because the company operates in many countries, it is exposed to currency fluctuations, especially given the unstable political environment in many markets around the world. This may face some challenges in the market and may result in some losses as well.


This ends our elaborative SWOT analysis of Dalmia Bharat. Let us conclude our learning below.

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To Conclude

Dalmia Bharat is one of India’s largest conglomerates, with interests in sugar mills, cement plants, chemical factories, engineering plants and a paper mill. In the SWOT analysis of Dalmia Bharat, we observed that the company is heavily reliant and enjoys strong brand recognition and trust with its customers. It has a strong relationship with its suppliers. 

But being such a huge brand across multiple countries, Dalmia Bharat should continue to innovate and develop more products and launch them in the market with the best possible marketing strategies.

Especially digital marketing which is vital in today’s growing and expanding world, to get better results and to remain competitive in the market. If you don’t have any idea of what digital marketing is or want to learn more about it and upgrade yourself, here is IIDE’s 3 Month Advanced Online Digital Marketing Course to know more.

We hope this blog on the SWOT analysis of Dalmia Bharat has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.

If you enjoy in-depth company research just like the SWOT analysis of Dalmia Bharat, check out our IIDE Knowledge portal for more fascinating case studies.

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