UltraTech to buy minority stake in Star Cement, cement war to intensify
NEW DELHI New Delhi: Leading cement producer UltraTech Cement on Friday announced the acquisition of 8.69 per cent minority stake in Meghalaya-based Star Cement from the promoters in a Rs 851-crore deal, stepping up competition with Adani Group entity Ambuja Cements for cement assets.The development comes three days after the Aditya Birla Group company completed the acquisition of a controlling stake in India Cements Ltd, making the south-based company its subsidiary.
UltraTech Cement is expanding its capacity through acquisitions and capacity additions as it faces competition from billionaire Gautam Adani-led Adani Group’s Ambuja Cements, the second-largest company, which is also adding capacity.Both companies are buying smaller cement companies to strengthen their position and achieve their targeted growth ahead of schedule.This is the Aditya Birla Group flagship company’s third acquisition in the last two years, including India Cements, Kesoram Industries’ cement business and 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 also taken over facilities of smaller companies like My Home and its subsidiary ACC has also acquired Asian Concretes & Cements. These acquisitions and expansions have helped Adani Cement, a lateral entrant in the sector, to cross 100 MTPA (million tonnes per annum) capacity with a pan-India presence in 2024, within two years of its entry into the sector with 70 MTPA acquired capacity from Swiss firm Holcim.
