Ultra Tech to acquire minority stake un Star Cement
Leading cement producer Ultra Tech Cement on Friday announced the acqusition of a minority 8.69 per cent stake in Meghalaya-based Star Cement from the promoters in a deal worth Rs 851 crore, intensifying the competition with Adani Group entity Ambuja Cements for cement assets. The development comes three days after the Aditya Birla group firm completed the acquisition of a controlling stake in India Cements Ltd, turning the south-based company into its subsidiary. UltraTech Cement is expanding its capacity through acquisitions and capacity enhancement as it faces competition from billionaire Gautam Adani-led Adani Group's Ambuja Cements, which is the second-largest player and is also scaling its capacity. Both players are snapping up small cement players to consolidate their positions and achieve their targeted growth ahead of time. This is the third acquisition of the Aditya Birla group flagship in the last two years, including India Cements, Kesoram Industries' cement business and the UAE-based RAKWCT. Ambuja Cements has completed the acquisition of Saurashtra-based Sanghi Industries, and Penna Industries and recently announced the acquisition of CK Birla group firm Orient Cement as part of its inorganic growth strategy. Besides, it has snapped small players' facilities such as My Home, and its subsidiary ACC has also acquired Asian Concretes and Cements. The promoters and the promoter groups own 66.47 per cent shareholding in Star Cement, which was incorporated in November 2001. Star Cement had a turnover of Rs 2,910.66 crore in FY24 and its profit after tax was at Rs 295 crore. It has seven plants and a total workforce of 4,000. The company aims to achieve a manufacturing capacity of 25 MTPA capacity by 2030, according to information available on its portal. It has cement manufacturing units at Lumshnong town in Meghalaya, Sonapur near Guwahati and at Mohitnagar near Jalpaiguri, West Bengal. Moreover, it has three grinding units. In 2024, it acquired India Cements Ltd and is in the process of acquiring Kesoram Industries' cement business.
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