SOURCE : NEW18 NEWS
Last Updated:April 04, 2025, 19:21 IST
The acquisition will help Nuvoco Vistas boost its installed cement capacity by over 20 per cent, reaching around 31 MTPA, according to a statement.
Vadraj Cements facilities include a 3.5 MTPA (million tonnes per annum) clinker unit in Kutch and a 6 MMTPA grinding unit in Surat.
The Mumbai bench of insolvency tribunal NCLT has approved the bid of Nirma Group firm Nuvoco Vistas to acquire debt-ridden Vadraj Cement, which includes an upfront payment of Rs 1,800 crore. The acquisition will help Nuvoco Vistas boost its installed cement capacity by over 20 per cent, reaching around 31 MTPA, the company said in a statement.
“The Resolution Plan includes an upfront payment of Rs 1,800 crore. Nuvoco intends to fund the transaction without a significant rise in its consolidated debt levels,” said Nuvoco Vistas.
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Nuvoco is positioned as the fifth-largest cement maker in India.
“The acquisition will be undertaken through Vanya Corporation, a wholly-owned subsidiary of Nuvoco Vistas. Subsequently, Vanya will be merged with Vadraj Cement, as outlined in the Resolution Plan. After the merger, Vadraj Cement will become the wholly-owned subsidiary of the company,” it said.
Nuvoco will additionally invest around Rs 1,200 crore to operationalise the assets, which have remained suspended for almost 7 years.
“A phased investment will be spread over 15-18 months from the date of actual handover by the Committee of Creditors towards getting the facility running and driving operational improvements across the VCL plants. The estimated target date to commence production is around Q3 FY27,” it said.
Vadraj Cements facilities include a 3.5 MTPA (million tonnes per annum) clinker unit in Kutch and a 6 MMTPA grinding unit in Surat.
Additionally, VCL owns 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 acquisition, Nuvoco’s total cement production capacity is set to increase to approx 31 MTPA, consolidating its position as the fifth-largest cement group in India for the long term,” it said.
Commenting on the development, Nuvoco Vistas Managing Director Jayakumar Krishnaswamy said: “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 and enable us to deliver greater value”.
Nuvoco started its operations in 2014 through a greenfield cement plant in Nimbol, Rajasthan. Later, it acquired Lafarge India, which entered India in 1999 and Emami Cement in 2020.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI)
