India’s 5th largest cement group Nuvoco Vistas is set to acquire Vadraj Cement after placing the winning bid.
Nuvoco emerged as the Successful Resolution Applicant (SRA) of Vadraj Cement Limited (VCL), currently undergoing Corporate Insolvency Resolution Process.
Nuvoco’s bid has been approved by the Committee of Creditors (CoC), and a Letter of Intent (LOI) issued.
The transaction will be implemented by Vanya Corporation, a wholly owned subsidiary of Nuvoco Vistas.
Nuvoco intends to fund the transaction without a significant rise in consolidated debt levels, according to a press communique of the company.
A phased investment will be spread over 15 months towards the refurbishment of assets and to drive operational improvements across the VCL plants.
The estimated target date to commence production is around Q3 FY27, subject to the National Company Law Tribunal (NCLT) approvals for the Resolution Plan.
VCL’s facilities include a 3.5 MMTPA (~10,000 TPD) clinker unit in Kutch, Gujarat, and a 6 MMTPA grinding unit in Surat, Gujarat.
Additionally, VCL owns high-quality limestone reserves, ensuring a consistent and sustainable supply of raw materials for future production. The captive jetty in Kutch further enhances logistical efficiency.
With this transaction, Nuvoco’s total cement production capacity is set to increase to approximately 31 MMTPA, distributed as 19 MMTPA in the East, 6 MMTPA in the North, and 6 MMTPA in the West, thus consolidating its position as the 5th largest cement group in India.
The transaction will foster synergies with Nuvoco’s existing manufacturing facilities in Nimbol and Chittorgarh, Rajasthan, enabling enhanced operational efficiency.
This will drive logistics optimisation, streamline operations, and improve competitiveness, providing the Company with better market access and a strengthened supply chain across key regions.
Jayakumar Krishnaswamy, Managing Director, Nuvoco Vistas, commented the deal is a pivotal moment, consolidating its position in the Indian cement industry, and strengthening market dominance.
“It complements our existing operations perfectly, expanding our geographic reach and operational capabilities. This strategic investment will enhance our portfolio, diversify our offerings and enable us to deliver greater value and superior service to our customers in a competitive and dynamic business landscape,” he noted.
Nuvoco Vistas Corporation Limited (Nuvoco) is a building materials company with a vision to build a safer, smarter, and sustainable world.
Nuvoco started its operations in 2014 through a greenfield cement plant in Nimbol, Rajasthan, and further acquired Lafarge India Limited, which entered India in 1999 and Emami Cement in 2020.
Today, Nuvoco is India’s 5th largest cement group in terms of capacity (25 MMTPA), with Rs 10,733 crore in total revenue from operations in FY24.
It is among the leading players in East India. Nuvoco offers a diversified business portfolio in three business segments: Cement, Ready-Mix Concrete (RMX), and Modern Building Materials (MBM).
Nuvoco’s Cement product portfolio includes – Concreto, Duraguard, Double Bull, PSC, Nirmax and Infracem brands that offer a complete spectrum of Ordinary Portland Cement (OPC), Portland Slag Cement (PSC), Portland Pozzolana Cement (PPC) and Portland Composite Cement (PCC).
Nuvoco’s RMX business possesses a pan-India presence and offers value-added products under Concreto (Performance concrete), Artiste (Decorative concrete), InstaMix (ready-to-use bagged concrete – the first-of-its-kind in the industry), X-Con (M20 to M60) and Ecodure (Special green concrete) brands.
It is a contributor to landmark projects like the Mumbai-Ahmedabad Bullet Train; Birsa Munda Hockey Stadium (Rourkela), Aquatic Gallery Science City (Ahmedabad), Metro Railway (Delhi, Jaipur, Noida and Mumbai) etc.
Through the NABL-accredited Construction Development and Innovation Centre (CDIC) based in Mumbai, Nuvoco identifies market gaps and offers innovative products to meet customer requirements.