UltraTech Cement has announced the acquisition of an 8.69% stake in Meghalaya-based Star Cement for ₹851 crore. This move highlights the ongoing competition between UltraTech Cement and the Adani Group as both aim to expand their dominance in India’s cement industry through acquisitions and organic growth.
Currently, UltraTech is India’s largest cement producer with an installed capacity of 156.66 million tonnes of grey cement. The Kumar Mangalam Birla-led company plans to increase this capacity to 200 million tonnes by 2026-27.
Star Cement, the largest cement brand in North-East India, has an installed capacity of 7.7 million tonnes. While it holds a strong foothold in North-Eastern markets, the company is also extending its reach into West Bengal and Bihar in the eastern region.
According to UltraTech’s regulatory filing, certain promoter and promoter group entities of Star Cement offered to sell their equity holdings. UltraTech’s board approved the investment to acquire up to 3.70 crore equity shares of Star Cement at a price not exceeding ₹235 per share, excluding taxes and levies.
The total acquisition cost will not surpass ₹851 crore. UltraTech will acquire the stake from Rajendra Chamaria and his family, part of Star Cement’s promoter group. Other promoters remain committed to their holdings and are not divesting any shares.
For the quarter ending September 30, 2024, Star Cement’s promoters held a 66.47% stake in the company. On Friday, Star Cement shares closed at ₹232.05 on the BSE, up 1%.
This acquisition follows UltraTech’s recent purchase of a controlling stake in India Cements Ltd. Meanwhile, rival Ambuja Cements, part of the Adani Group, has been active in acquiring Saurashtra-based Sanghi Industries, Penna Industries, and Orient Cement from the CK Birla Group.
This competitive spree reflects the intense rivalry among India’s leading cement players as they vie for market leadership.
