Nuvoco Vistas acquires Vadraj Cement to expand capacity

Nuvoco Vistas Corp. secures Vadraj Cement, increasing 9.5 MMTPA capacity, enhancing the supply chain, and establishing strategic operational integration nationwide.

Nuvoco Vistas Corp. Ltd., India’s fifth-largest cement conglomerate and a major participant in East India, is being appointed as the SRA of Vadraj Cement Limited (VCL), currently undergoing the Corporate Insolvency Resolution Process. The Committee of Creditors (‘CoC’) accepts Nuvoco’s Resolution Plan and has issued a Letter of Intent (LOI).

The acquisition will be carried out by Vanya Corporation Private Limited, a wholly owned subsidiary of Nuvoco Vistas Corp. Ltd. Nuvoco plans to fund the deal without significantly increasing its combined debt levels. A phased investment will be made over 15 months to modernise assets and generate operational improvements throughout the VCL units. The estimated start date for production is in Q3 FY27, subject to the Hon’ble National Company Law Tribunal (NCLT) approvals for the Resolution Plan. The company anticipates considerable benefits from this transaction. The current facilities comprise a 3.5 MMTPA (~10,000 TPD) clinker unit in Kutch, Gujarat, and a 6 MMTPA grinding mill in Surat.

VCL also possesses high-quality limestone reserves, which ensure a continuous and sustainable supply of raw materials for future production. The captive jetty in Kutch improves logistical efficiency. With this transaction, Nuvoco’s total cement production capacity is expected to expand to approximately 31 MMTPA, divided as 19 MMTPA in the East, 6 MMTPA in the North, and 6 MMTPA in the West, cementing its position as India’s fifth-largest cement company in the long run.

The collaboration, once completed, is expected to result in significant synergies with Nuvoco’s current manufacturing sites in Nimbol and Chittorgarh, Rajasthan, allowing for increased operating efficiency. This will promote logistical optimisation, streamline operations, and increase competitiveness, giving the company better market access and a stronger supply chain in important regions.

On this momentous occasion, Jayakumar Krishnaswamy, Managing Director, Nuvoco Vistas Corp. Ltd., emphasises, “This deal is a pivotal moment in Nuvoco’s journey, consolidating our position as the fifth-largest player in the Indian Cement Industry and further strengthening our 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.”

For more details, visit: https://nuvoco.com/

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