Nuvoco Vistas Corp gets NCLT nod to acquire Vadraj Cement for ₹1,800 cr

Nuvoco Vistas Corp Ltd, a Mumbai-based cement manufacturer, has received the National Company Law Tribunal (NCLT) Mumbai Bench’s approval to acquire Vadraj Cement Limited (VCL) for ₹1,800 crores under the Insolvency and Bankruptcy Code (IBC). The acquisition marks a significant expansion for Nuvoco, increasing its installed cement capacity by over 20% to approximately 31 million metric tonnes per annum (MMTPA), reinforcing its position as India’s fifth-largest cement producer.

Strategic Expansion at Competitive Cost

The transaction, funded through an upfront payment of ₹1,800 crores, is structured to avoid a substantial rise in Nuvoco’s consolidated debt. The acquisition is being executed through Vanya Corporation Private Limited, a wholly-owned subsidiary of Nuvoco, which will later merge with VCL. Post-merger, Vadraj Cement will operate as a wholly-owned subsidiary of Nuvoco.

Nuvoco plans to invest an additional ₹1,000–₹1,200 crores to revive VCL’s operations, which have been idle for nearly seven years. The phased investment, spread over 15–18 months, aims to operationalize VCL’s assets, with production expected to commence by Q3 FY27.

Key Assets & Market Strengthening

Vadraj Cement’s assets include a 3.5 MMTPA clinker unit in Kutch, Gujarat, and a 6 MMTPA grinding unit in Surat. The company also holds high-quality limestone reserves and a captive jetty in Kutch, ensuring raw material security and logistical efficiency.

Mr. Jayakumar Krishnaswamy, Managing Director of Nuvoco Vistas, stated, “This acquisition strengthens our market position, optimizes logistics, and enhances supply chain efficiency. It enables us to deliver greater value to customers in a competitive landscape.”

Long-Term Growth Prospects

The deal is seen as a strategic ‘value buy,’ with an estimated cost of 60–60–65 per ton—one of the lowest in recent times. The expansion aligns with Nuvoco’s vision to bolster its presence in key regions and drive sustainable growth.

About Nuvoco Vistas Corp Ltd.

Nuvoco Vista Corp, India’s fifth-largest cement group (25 MMTPA capacity), reported ₹10,733 crores in revenue in FY24. Its diversified portfolio includes Cement, Ready-Mix Concrete (RMX), and Modern Building Materials (MBM), with brands like Concreto, Double Bull, and Zero M. Nuvoco has contributed to major infrastructure projects, including the Mumbai-Ahmedabad Bullet Train and Delhi Metro.

About Vadraj Cement

Vadraj Cement is an unlisted company incorporated under the provisions of the Companies Act, 1956. It was engaged/ proposed to be engaged in the business of manufacturing of cement and clinker with manufacturing units in Surat and Kutch, in Gujarat. Vadraj Cement Limited was engaged in manufacturing of Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC) and Portland Slag Cement (PSC) varieties of cement. The operations of the Company remain suspended for the last approx. 5 years. The Company has an approx. 10,000 TPD clinker unit at Kutch (Gujarat, India) and an approx. 6 Million Tonnes p.a. cement grinding unit at Surat (Gujarat, India) (partially constructed). The Company possesses limestone mining rights pursuant to a mining lease deed executed with the Government of Gujarat. The Company had earlier also commenced construction of a captive jetty at Kutch which is partially constructed and is in proximity to the clinker unit at Kutch. The same is as per preliminary information available.

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