Star Cement Arm Wins Limestone Block in Rajasthan, Boosting Raw Material Security

Star Cement on August 22 announced that Star Cement North East, its subsidiary, has been declared as the preferred bidder for the Parewar (SN-IV) limestone block in the Rajasthan province.

This block is limited in area to 960 hectares, with a reserves estimation of 271.38 MT of limestone; it is positioned in Village Joga, Tehsil Ramgarh, Jaisalmer district. The volatile conditions for allocation were confirmed by the Government of Rajasthan on the conclusion of a successful e-auction process.

The company also states that this mining lease will be a critical asset in securing raw material security and a steady, long-term supply, subject to statutory clearances and final agreements. It is expected to complement the company’s growth strategy in the future and provide synergies as it ramps up to meet the increasing pace of cement consumption in the northern and northeastern markets.

In FY24, Star Cement’s topline was 2910 Crore. The company has a cement grinding capacity of 7.7 million tonnes and a clinker capacity of 6.1 MTPA. With its strong distribution network, Star Cement covers the market through almost 2,000 dealers and more than 12,500 retailers.

The company is also building a new unit at Silchar and Jorhat in Assam, while pushing ahead on its aggressive expansion strategy in the state. It has budgeted capital expenditure of Rs. 380 crore in the second half of FY25 for these projects.

Industry watchers say this limestone block in Rajasthan puts Star Cement into an essential supply base in western India, so raw material resources are not solely dependent on the Northeast. This is evident during the time when the cement manufacturers are mobilizing their mineral resources in pursuit of managing their input costs to remain competitive in an inflating requirement of infrastructures and housing.

Star Cement also placed itself to achieve long-term resource sustainability with this acquisition, which will strengthen the foothold within the fast-growing Indian cement market.