Adani Group’s Ambuja Cement is reportedly exploring the acquisition of Star Cement, a leading player in the North East market, as part of its expansion strategy, according to a report by MoneyControl.
The group is in talks with EY to evaluate the deal, sources familiar with the matter told the publication.
An Adani Group official told MoneyControl, “The company is always evaluating options for growth opportunities.”
The North East has become a hotspot for cement industry expansions, with UltraTech and JK Lakshmi Cement also entering the market. UltraTech is building a 1.2-MTPA greenfield grinding unit in Assam, expected to be operational by FY27, while JK Lakshmi Cement is setting up a 1-MTPA clinkerisation unit and a 1.5-MTPA grinding unit in the state.
Star Cement’s Market Leadership
Star Cement holds the largest market share in the North East, with a total installed capacity of
7.7 million tonnes per annum (MTPA), including a 1.67-MTPA integrated plant in Meghalaya and four grinding units. The company plans to expand to 25 MTPA by 2030.
Its promoters, Sajjan Bhajanka and Prem Kumar Bhajanka, own 11.85% and 10.2% stakes, respectively, while the total promoter shareholding stands at 66.47%.
During an analyst call, Star Cement’s management flagged the challenges of consolidation in the North East, citing issues with land acquisition, local dynamics, and mining legalities. “Anyone attempting to set up a plant here will need at least four to five years,” a senior executive reportedly said.
The executive also noted that consolidation in other parts of India has improved pricing discipline and profitability, though the North East presents a unique set of hurdles.
Competition and Regional Growth
Star Cement’s competitors include Dalmia Cement, with a 5.6-MTPA capacity, and Amrit Cement, with 1.5 MTPA. Dalmia plans to add 2.4 MTPA capacity in Assam and a 0.5 MTPA unit in Bihar by FY25.