#1Dalmia BHARAT ENTERPRISES Communique: Acquisition of "Adhunik Cement Ltd" 04th October 2012#2Press Note Lets Excel Dalmia BHARAT ENTERPRISES "As part of its growth plans, Dalmia Cement Bharat Limited (DCBL) has acquired 100% stake in Meghalaya based Adhunik Cement. Adhunik Cement has a robust presence in markets of the North East with a 10% market share and a capacity of 1.5 MTPA. Ownership of this business comes at a phased investment of Rs 560 crore and follows the non-organic, acquisition based growth strategy of Dalmia Cement Bharat Ltd under which the company acquired 50% stake earlier this year in Calcom Cement."#3Lets Excel Delivering Commitments → Demonstrated excellent project execution capabilities Dalmia BHARAT ENTERPRISES 2009 → Initiated Corporate restructuring to offer pure plays 2010 → PE Investment to strengthen Balance Sheet 2010 → Acquisition of stake in Calcom, step for inorganic growth → Groundbreaking, Belgaum Greenfield, Karnataka-2.5 MnT ✓ 2012 ✓ 2012 → Cementing Pan-India Footprints 4th largest Indian cement group post Adhunik acquisition ✓ 2012 2012#4Lets Excel Corporate structure Public 19 % - Propelling Growth Institutions 18 % Promoters 63% Dalmia Bharat Enterprises Ltd. (Listed on NSE, BSE & MSE) Dalmia Refractories 85 % KKR 15 % Dalmia Cement Bharat Ltd (DCBL) Operating Cement Capacity 100 % Dalmia Cement Ventures Ltd. Plans for Greenfield cement projects 100 %* 50% 45 % Adhunik Cement Ltd. 100 % Dalmia Power Ltd. 74 % 26 % Dalmia Power Ventures Ltd. Thermal Power Cement capacity of 1.5 mtpa CPP of 25 MW Calcom Cement India Ltd. Cement capacity of 1.3 mtpa OCL India Ltd. (Listed) Cement capacity of 5.3 mtpa CPP of 54 MW Refractories Calcom Promoters 47 % OCL Promoters 25% Public/Others 30 % *Agreed to acquire 100% stake. **Agreed to acquire 50% stake. Dalmia BHARAT ENTERPRISES#5Lets Excel Cementing Pan-India Footprints Dalmia BHARAT ENTERPRISES Chartered into "Top Four" position in Indian Cement market with Adhunik acquisition Dalmia Cement Group Cement capacity (MnT) Operational Plants Location Existing Ongoing Expansion Total Captive power (MW) Under construction Plants Head Office DCBL 9.0 2.5 11.5 72 OCL 5.3 1.4 6.7 54 Calcom 1.3 0.9 2.1 0 Adhunik 1.5 0.0 1.5 25 Total 17.1 4.7 21.8 151#6About Adhunik Lets Excel Dalmia BHARAT ENTERPRISES Established as a strategic partnership between Adhunik group and MSP group of Kolkata, Adhunik Cement Limited commissioned its 1.5 mtpa integrated cement manufacturing plant in August 2010 Plant loacted at Thanskai village, Jaintia Hills, Meghalaya → One of the largest operating cement plants in North East → Kiln capacity of 3000 TPD 25 MW of CPP installed, which is estimated to provide surplus power for sale after consumption for cement Plant located at 62 Kms from rail head at Badarpur (Meghalaya) →Situated about 250 Kms from Guwahati, which is the biggest market in the North East → Widespread distribution network across all North Eastern states and West Bengal#7Investment Rationale (1/2) Lets Excel North East India - "A Resource Rich Underinvested Region" Dalmia BHARAT ENTERPRISES North east India cement demand growing at 13.5% per year compared with national average of 9.6%. Per capita cement consumption in the North East at 105 Kgs, just 2/3rd of national average. Abundant Coal Reserves at Meghalya, ~460 MnT, highest in North East. Various infrastructure investments, growing economic prosperity and renewed strategic focus on the region by Central governments are expected to induce further stimulation for cement consumption in the region. → Adhunik also enjoys all the special exemptions pertaining to VAT, Excise, CST, Income Tax, Transport & Power Subsidy etc, offered by North East Governments. North East cement market is highly fragmented with only 3-4 big local players (Star Cement, Topcem, Adhunik, Calcom etc). The total cement market size of the region is ~6 MnT, out of which ~25-30% was supplied by Mainland players and ~0.8 MnT was supplied by local mini cement players.#8Lets Excel Investment Rationale (2/2) Adhunik Cement - Achieved 10% market share in North East in FY12 Dalmia BHARAT ENTERPRISES → Second brownfield acquisition by Dalmia under its growth strategy of organic and inorganic. expansion. → Dalmia first major national player to have physical presence in North East Position in North-east region will be consolidated with the acquisition of Adhunik and Calcom. → Dalmia biggest cement manufacturer in North East With distributed plant operations, we believe significant potential savings in overall logistics. costs for both Calcom and Adhunik can be achieved#91995 1996 1997 1998 Lets Excel Consistently Higher Cement Prices in North-East India Cement Prices (Rs/Bag) 273 272 262 251 254 220 251 254 254 174 178 183 172 165 171 172 172 212 217 155 159 * 165 194 130 155 Ж 145 132 127 126 125 129 134 127 130 121 107 1999 2000 2001 2002 2003 2004 -Guwahati -All India Average 2005 2006 2007 2008 2009 2010 2011 2012 2013 YTD Dalmia BHARAT ENTERPRISES 325#10thankyou Disclaimer Certain statements in this presentation describing the Company's objectives, projections, estimates and expectations may be 'forward looking statements' within the meaning of applicable laws and regulations. Forward looking statements are identified, by using the words 'anticipates', 'believes', 'expects', 'intends' and similar expressions in such statements. Although we believe our expectations are based on reasonable assumptions, these forward-looking statements may be influenced by numerous risks and uncertainties that could cause actual outcomes and results to be materially different from those expressed or implied. The Company takes no responsibility for any consequence of decisions made based on such statements and holds no obligation to update these in the future.