Star Cement (SCL) is a cement player in North-Eastern India, with a consolidated installed capacity of 6.1 mtpa of clinker and 7.7 mtpa of cement. It also has a 51 MW thermal power plant (TPP) and a 24.3 MW waste heat recovery system (WHRs) under Meghalaya Power (MPL). The company also has captive limestone mines.
Supported by strong brand, SCL enjoys 27% volume market share in North-Eastern India. Owing to its strength as a local brand, the company has been able to command higher prices as compared with its peers in the region as reflected in its industry-leading blended realisations. Furthermore, the competitive intensity is comparatively low in the North-Eastern region as some of the pan-India players do not have manufacturing base in the region and transporting cement from outside the region is not economically viable owing to the high freight costs in the hilly terrain. This gives local players such as SCL an edge in terms of higher pricing...