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Star Cement Ltd.

BSE: 540575 Sector: Industrials
NSE: STARCEMENT ISIN Code: INE460H01021
BSE 12:21 | 30 Mar 68.00 -4.95
(-6.79%)
OPEN

70.25

HIGH

72.50

LOW

68.00

NSE 12:19 | 30 Mar 69.00 -4.00
(-5.48%)
OPEN

68.05

HIGH

71.90

LOW

67.00

OPEN 70.25
PREVIOUS CLOSE 72.95
VOLUME 2121
52-Week high 137.60
52-Week low 56.00
P/E 12.43
Mkt Cap.(Rs cr) 2,804
Buy Price 67.00
Buy Qty 23.00
Sell Price 70.55
Sell Qty 156.00
OPEN 70.25
CLOSE 72.95
VOLUME 2121
52-Week high 137.60
52-Week low 56.00
P/E 12.43
Mkt Cap.(Rs cr) 2,804
Buy Price 67.00
Buy Qty 23.00
Sell Price 70.55
Sell Qty 156.00

Star Cement Ltd. (STARCEMENT) - Company History

Star Cement Limited (formerly known Cement Manufacturing Company Limited) was incorporated in November 02 2001 is one of the largest cement manufacturers in North Eastern India. The company is engaged in manufacturing and selling of Cement Clinker & Cement. The company's manufacturing units are located at Lumshnong Meghalaya and Guwahati Assam. The company sells its product across north eastern and eastern states of India.Star Cement's 0.6 MTPA integrated cement plant at Lumshnong (Meghalaya) is proximate to key raw material reserves of limestone coal and shale. The company also added 0.46 MTPA cement unit in Meghalaya (via its subsidiary) aggregating an installed capacity of 1.0 MTPA. Star Cement was recognized by the Meghalaya state government for its pioneering cement plant in the backward area of Lumshnong in 2005. The company's output is marketed through a 400 billion- dealer network resulting in the largest market share in North East India. The Company's institutional customers comprise Larsen & Tourbo National Hydro Power Corporation Public Works Department Indian Railways and Ministry of Defense.The company's plant at Lumshnong has been producing clinker from 23rd Dec.2004 and cement from 2nd Feb.2005. This is the largest cement plant in North East India which is shortly to be expanded to 1 Million Ton per annum capacity. Presently the company is marketing super quality clinker to different grinding units located in India Nepal & Bhutan along with 3 types of cement such as Ordinary Portland Cement 43 grade Ordinary Portland Cement 53 grade Portland Pozzolana Cement Part I Fly ash based. The company has received BIS License for the products being sold in the market. The company has developed a good image in the Market since launch of the product due to its superior quality.During FY 2006 the company has undertaken expansion of existing cement plant capacity from 1200 tons per day (TPD) to 1800 TPD. During FY 2006 the Company acquired 99.56% equity shares of Megha Technical & Engineers Private Limited (MTEPL) consequent to which MTEPL has become a subsidiary of the Company with effect from 23 March 2006. MTEPL has set up a 9 MVA power plant and also has a large fleet of heavy machine equipments and vehicles used in mining activities. MTEPL is setting up a cement-grinding unit with annual installed capacity of 4.5 Lac tonnes.Shyam Century Ferrous Ltd (SCFL) increased its shareholding the company to 76.73% from 45.71% as at 31 March 2005 consequent to which the company became a subsidiary of SCFL.In terms of Scheme of Amalgamation approved by the Board of Directors of SCFL SCFL is proposed to be amalgamated with Century Plyboards (I) Ltd (CPIL) with effect from 1 April 2005. Since CPIL is a leading manufacturer of plywood veneer and laminates having reputed and precious national brand like 'CENTURY PLY' the Company is expected to be benefited with such association.In FY 2014-15 the Company launched its newly developed 'Anti-Rust Cement' in the markets of North Eastern Region (NER). The product is presently under test marketing and is expected to present a better volume in years to come.During FY 2014-15 the Company had launched its product in the same brand name 'STAR CEMENT' in the markets of West Bengal & Bihar. It has tied up with two grinding units in West Bengal to augment its capacity in addition to supplying cement to these markets from its own units located in Assam and Meghalaya.During FY15 the Company made long term arrangement with its subsidiary M/s. Meghalaya Power Limited for supply of quality power at competitive rates. It has been able to capitalize on the opportunity of availability of reliable and quality power sourced from Indian Energy Exchange (IEX) for its grinding unit at Guwahati and to reduce the power cost too by optimizing the source mix between power supplied by IEX and Grid.In FY15 on the Logistics front the Company has expanded distribution network in the states of West Bengal Bihar & Jharkhand besides reaching out to interior most areas of North East India. Warehousing network was increased substantially during the year. Railway siding near Guwahati Grinding Unit was constructed and commissioned in record time giving boost to Railway Rake handling capacity for inbound and outbound traffic while ensuring cost saving on Transportation and handling expenses. During FY 2015 the Company incurred capital expenditure of Rs. 40.28 Lacs for carrying out R&D Projects in the plant for development of advanced systems.During FY 2017 the Company has installed a Pre-Grinder Unit with the existing Clinker Grinding Ball Mill at its Lumshnong unit. With installation of pre-grinder the ball mill will be fed with pre-ground clinker and other additives in order to produce cement. The main equipment has been sourced from M/s. Humboldt Wedag India with German Technology. The installation of Pre Grinder unit has resulted into increase in clinker grinding capacity of Lumshnong unit from existing 1800 tons per day (TPD) of cement to 3000 (TPD). The installation of pre-grinder will result into reduction in power consumption in clinker grinding. The Pre-Grinder Unit has commenced commercial production from 31st March 2017.The Hon'ble National Company Law Tribunal at Guwahati vide its order dated 7th February 2017 approved amalgamation of erstwhile holding company M/s. Star Ferro and Cement Limited with the company effective from 22nd February 2017. The appointed date for amalgamation was 1st April 2016. In line with terms of Scheme of Amalgamation 295490077 equity shares of the company were allotted on 8 April 2017 to the shareholders of erstwhile Star Ferro and Cement Limited in the ratio of 1.33 equity shares of Re 1 each of the company for every 1 (one) equity share of Re 1 each of erstwhile Star Ferro and Cement Limited held by them as on the record date i.e. 3d April 2017. The Company has initiated steps to list its shares with National Stock Exchange of India Limited and BSE Limited.During FY 2017 the Company incorporated a wholly owned subsidiary Star Century Global Cement Private Limited in Myanmar on 28 June 2016.In FY 2018 Star Cement has taken a proposal for merger of Megha Technical & Engineers Private Limited a wholly owned subsidiary of the company with the company with effect from 1 April 2018 i.e. the Appointed Date. Since both the companies are engaged in the business of cement manufacturing upon the scheme becoming effective the business of both the companies can be carried more efficiently and economically as one entity.As a market leader in NER the company has further consolidated dealers and sub dealer's network. Sub dealers were given status as `Rising Star' with a nominal security deposit. During the year 2019 the Company has consolidated dealers and sub dealer's network. It introduced a mobile application for dealers for payments orders booking printouts of invoices and ledgers. This initiative is helping dealers in timely submission of GST returns.