As the tide remains favourable for cement manufacturers, rising demand and realisations are prompting companies to expand capacities and diversify into new geographies. Star Cement, having a strong presence in the northeast, is expanding into eastern India with ongoing capacity expansion at Siliguri, West Bengal.
Eastern India has been a key focus area for most cement manufacturers, given the expected demand surge. Limestone availability in the region, the key raw material for cement manufacturing, makes it an attractive destination. Hence, utilising its strong cash flows from the northeast, expanding in the neighbourhood in eastern India is the logical next step for Star Cement. The company?? Siliguri plant will commence production soon.
The company is already present in the region through leased grinding units of 0.6 MT capacity. The new grinding unit at Siliguri will replace supply from the leased units and will be able to boost further volume growth. Analysts expect the expanded capacities to see 60-65% utilisation in FY22.