Star Cement targets 12 MTPA capacity by FY27 in North East expansion

As part of the expansion, Star Cement will be setting up two grinding units at Silchar and Jorhat, Assam, and a 800 CBM block plant for concrete and precast building material, together at Rs 1,000 crore.

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26 Aug, 2025 12:21

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Clinker and Cement maker Star Cement has plans to ramp up capacity to nearly 12 MTPA by FY27, more than double the FY23 capacity, sending shares higher in early trade on August 21.

Clinker capacity too will be doubled by FY27 to 6.1 MTPA, the company said, adding that a total planned capex of Rs 835 crore over FY25 has been chalked out, mostly funded via internal accruals. Out of this, Rs 110 crore has been spent in the June quarter, the company said.

As part of the expansion, Star Cement will be setting up two grinding units at Silchar and Jorhat, Assam, and a 800 CBM block plant for concrete and precast building material, together at Rs 1,000 crore.

On a QoQ basis, Star has ramped up its market share in the North Eastern region from 25% to 27% in the June quarter.

Star Cement Consolidated June Sales at Rs 751.01 crore, down 1.24% YoY. Read More

This quarter was exceptionally bad. The reason being the monsoon and the election, which drove the momentum of the market. Even right now, the monsoon in Northeast is pretty hard, it is much worse than last year in Northeast, the monsoon. So I think that is why the revenue numbers look subdued, Deputy Managing Director Tushar Bhajanka said after the June quarter earnings.

Star Cement added the company had to buy Rs 30 crore worth of clinker from outside due to a technical difficulty in a plant commissioned in April that disrupted production till end of May, leading to lower profitability.

Shares of Star Cement are higher by 27 percent so far this year, and up 46 percent compared to a year ago.