The firm has bought a 53 per cent holding in the company for INR5.5bn ($100m) according to VCCircle, which cited a source privy to the development.
Blackstone bought the stake from financial services firm Shriram, which previously held 70 per cent of the business.
Last month it was reported Shriram had shortlisted Blackstone and CVCI as potential financial partners to run Sree, with both firms being asked to run the plant and business.
Shriram previously planned to sell its stake to one of its larger peers such as Holcim or CRH, but later decided on a private equity suitor to get the company back on track, the Times of India said.
Blackstone is expected to use the unit as a platform for consolidation in the cement sector.
Earlier this month Blackstone acquired a two per cent stake in Multi-Commodity Exchange of India (MCX) for INR104 crore ($19m).
Mumbai headquarted MCX holds a market share of more than 85 per of the Indian commodity futures market and has over 2,170 registered members.
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