On Shopping Spree: After India Cements, UltraTech Cement Takes Rs 851 Cr Stake In This Company

In a BSE filing, Ultra Tech Cement said it has acquired a minority share in Star Cement at 8.69 per cent. The acquisition comes soon after Ultratech acquired 32.72 per cent in India Cements.

UltraTech Acquires Minority Stake In Star Cement: Details

In a BSE filing, Ultra Tech said,“The Board of Directors of the Company at its meeting held today considered the proposal and approved making an investment to acquire non-controlling minority stake upto 3.70 crores equity shares of Star Cement at a price not exceeding Rs. 235/- per share.”The cement giant will acquire 8.69 per cent of Star Cement priced at Rs 851 crore.

Star Cement is a cement manufacturer and sales company located in Meghalaya, which had a turnover as of 31st March, 2024 of Rs. 2,910.66. 

On December 20, the Competition Commission of India (CCI) had approved UltraTech Cement Limited’s acquisition of India Cements Limited (ICL). As per a December 24 filing, UltraTech said it completed acquisitions of 32.72 per cent in India Cements.

India's Booming Cement Industry

As per India Brand Equity Foundation (IBEF), in 2023, the market size of India’s cement industry reached 3.96 billion tonnes and is expected to touch 5.99 billion tonnes by 2032, exhibiting a CAGR of 4.7 per cent during 2024-32. As India has a high quantity and quality of limestone deposits throughout the country, the cement industry promises huge growth potential. 

India has a total of 210 large cement plants, of which 77 are in Andhra Pradesh, Rajasthan, and Tamil Nadu. Nearly 32 per cent of India's cement production capacity is based in South India, 20 per cent in North India, 13 per cent in Central, 15 per cent in West India, and the remaining 20 per cent is based in East India. India's cement production reached 374.55 million tonnes in FY23, a growth rate of 6.83 per cent year-on-year (you), IBEF noted.

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