Shares of Star Cement soared 9.6% on Wednesday, reaching ₹215 on the Bombay Stock Exchange (BSE), following reports suggesting that Ambuja Cement, a subsidiary of the Adani Group, is considering acquiring the company. While the deal remains in its preliminary stages, reports indicate that consultancy firm EY has been engaged to assess the potential acquisition.
Star Cement, the largest cement producer in the North East, holds an installed production capacity of 7.7 million tonnes per annum (MTPA), supported by its integrated plant in Meghalaya and four grinding units. The company has ambitious plans to expand its capacity to 25 MTPA by 2030, making it an attractive prospect for Ambuja Cement’s growth-driven strategy. The acquisition of Star Cement could significantly bolster Ambuja Cement’s foothold in the North East and Eastern India, aligning with its broader strategy of increasing domestic market share. The Adani Group has been aggressively expanding its cement operations, with a target of achieving a 140 MTPA capacity by 2028. Earlier this year, Ambuja Cement completed the acquisition of Penna Cement Industries for ₹10,422 crore, solidifying its presence in Southern India. Adding Star Cement to its portfolio would further diversify its geographical reach, tapping into a rapidly growing market segment.
If the deal materialises, it would signify a pivotal move in India’s competitive cement industry, where major players are racing to consolidate and expand. Analysts believe such acquisitions align with the increasing demand for infrastructure and real estate development across India. While official confirmation from the companies is awaited, the market’s response underscores investor confidence in the potential synergies between Ambuja Cement and Star Cement.
