Adani Group's Ambuja Cement is evaluating a deal to acquire Star Cement as part of its expansion strategy in the North East region of India, said a report by CNBC-TV18 citing its sources.
Star Cement is the largest cement manufacturer in the North East, with an installed capacity of 7.7 million tonnes per annum (mtpa) and plans to scale it to 25 mtpa by 2030.
The Adani Group has appointed EY to evaluate the deal, said the report.
It is to be noted however that Star Cement has refuted thes reports, calling them speculative and stating that they are not engaged in any discussions regarding the acquisition
Star Cement holds the highest market share in the North East. Currently, it has the capacity of 7.7 mtpa with a 1.67-mtpa integrated cement plant in Meghalaya and four grinding unit.
Located in Lumshnong, Meghalaya, with a capacity of 1.67 MTPA, Star Cement has two Grinding Units, at Sonapur, near Guwahati, Assam, and one unit at Mohitnagar, near Jalpaiguri, West Bengal.
Star Cement aims to expand its capacity to 25 mtpa by 2030.