- 22 Apr 2024
- ICICI Securities
STAR CEMENT COMMISSIONS 3.3 MILLION TONNE CLINKER CAPACITY AT MEGHALAYA
STARCEMENT - 203 Change: -0.54 (-0.26 %)News: Star Cement has commenced commercial production from its new clinker line of 3.3 million tonnes (mtpa) capacity situated at Lumshnong (Meghalaya).
Views: The commissioning timeline of this new clinker unit has been in-line with management's guidance. One 2 mtpa grinding unit expansion at Assam was also completed last month, which takes the cement capacity to 7.7 mtpa. The company is also in process of further expanding its cement capacity to 9.7 mtpa by FY26e as one more 2 mtpa grinding capacity at Assam is expected to be commissioned by Q2FY26. These expansions along with pickup in demand in north-east region, would help company to grow it's volumes in double digits over the next 2 years. Moreover, company targets to improve its market share in north-east region to 30-32% (from 24-25% at present). Company aims to double its capacity further to 20 mtpa by 2030.
Impact: Positive