Shree Cement Limited recently finalized an asset purchase agreement with StarCrete LLP, securing the acquisition of five operational RMC plants for a sum of Rs 33.50 crore. This move marks the company’s official entry into the RMC (ready mix concrete) sector, a significant development highlighted in their recent statement.
Shree Cement is a leading cement manufacturer in India, known for its high-quality products and innovative technologies. With a strong presence in the cement industry since 1979, Shree Cement has established itself as a trusted brand. The company’s commitment to sustainability is evident in its efforts to reduce carbon emissions and promote eco-friendly practices.
StarCrete, on the other hand, is a relatively newer player in the cement industry, focusing on providing premium quality cement products to meet the growing demands of the market. Despite being a new entrant, StarCrete has quickly gained recognition for its superior products and customer-centric approach. The company’s dedication to quality and innovation has helped it carve a niche for itself in the competitive cement market.
The strategic positioning of these acquired RMC plants is expected to open doors to key construction projects within the Mumbai metropolitan region (MMR), thus catalyzing the growth of Shree Cement’s RMC business. Furthermore, Shree Cement Limited has disclosed plans to establish greenfield RMC plants at various locations. By the conclusion of March 2024, the company aims to establish its greenfield presence in the RMC sector.
In his reflection on this significant achievement, Neeraj Akhoury, the Managing Director of Shree Cement Ltd, underscored the strategic importance of entering the Ready-Mix Concrete (RMC) segment. He highlighted that this expansion is in line with their overarching strategy to transform into a diversified company, placing a strong emphasis on their foundational cement business.
The RMC sector presents an enticing prospect, with anticipated robust growth driven by government initiatives supporting extensive infrastructure projects and a surge in housing construction. This strategic move underscores Shree Cement Limited’s commitment to diversifying its business portfolio while leveraging emerging opportunities in the construction materials market.