Adani Group’s Ambuja Cement is thinking of buying Star Cement, a company that makes cement in the North East region of India. This deal would help Ambuja Cement grow its business in the region.
“Adani Group’s Ambuja Cement in Talks to Acquire Star Cement, Eyes North East Expansion”
In a significant development, Adani Group’s Ambuja Cement is reportedly in talks to acquire Star Cement, a leading player in the North East region. The move is part of Ambuja Cement’s expansion strategy, as the company seeks to strengthen its presence in the region.
According to sources familiar with the matter, Ambuja Cement has appointed consultancy firm EY to evaluate the deal. While neither Adani Cement nor Star Cement has commented on the development, an Adani Group official stated that the company is always evaluating options for growth opportunities.
The acquisition of Star Cement would mark a significant milestone in Ambuja Cement’s expansion plans, as the company seeks to tap into the growing demand for cement in the North East region. The region has witnessed significant infrastructure development in recent years, driven by government initiatives and investments in transportation, energy, digital connectivity, and industrial growth.
Star Cement: A Leading Player in the North East
Star Cement is a prominent player in the North East region, with a total installed capacity of 7.7 million tonnes per annum (MTPA). The company operates an integrated cement plant in Meghalaya, with a capacity of 1.67 MTPA, and four grinding units. Star Cement aims to expand its capacity to 25 MTPA by 2030.
Other Key Players in the Region
Other key players in the North East region include Dalmia Cement, with a capacity of 5.6 MTPA, and Amrit Cement, with a capacity of 1.5 MTPA. Dalmia Cement is set to commission a 2.4-MTPA cement capacity in Assam and a 0.5 MTPA unit in Bihar in FY25.
UltraTech Cement’s Expansion Plans
Meanwhile, UltraTech Cement is building a greenfield 1.2-MTPA grinding unit in Assam, scheduled to go on stream in FY27. JK Lakshmi Cement is also setting up a clinkerisation unit with a capacity of 1 MTPA and a cement grinding unit of 1.5 MTPA in Assam.
Conclusion
The potential acquisition of Star Cement by Ambuja Cement marks a significant development in the North East region’s cement industry. As the region continues to witness significant infrastructure development, the demand for cement is expected to grow, making it an attractive market for players like Ambuja Cement.
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