Hyderabad : Dalmia Cements proposes to acquire Eswar Cements for expanding its South Indian operations. The purpose of this takeover is to set up a greenfield cement plant of upto 4 million tonnes capacity in Andhra Pradesh, the company informed BSE.

The company already has a significant presence in Tamil Nadu and is a key supplier of cement in the South India markets.

The company is planning to take a stake in OCL India Ltd. The company's Board is seeking independent professional advice in structuring this alliance which will come into effect after February 2007. The intention of the company is to make OCL their primary vehicle of  investment in the cement business.