Nuvoco Vistas Corp emerges as ‘successful bidder’ for Vadraj Cement

Nuvoco Vistas Corp. Ltd., a cement company from eastern India, said it has successfully bid for Vadraj Cement Ltd. (VCL) which is currently undergoing corporate insolvency resolution process.

The resolution plan submitted by the company has been approved by the committee of creditors (CoC) and a letter of intent (LOI) has been issued, it said.

The transaction will be implemented by Vanya Corporation Private Ltd., a wholly owned subsidiary of Nuvoco Vistas Corp. Ltd.

Jayakumar Krishnaswamy, MD, Nuvoco Vistas Corp. Ltd., in a statement said, “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.”

The company intends to fund the transaction without a significant rise in its consolidated debt levels.

A phased investment will be spread over 15 months toward the refurbishment of assets and to drive operational improvements across the VCL plants,” it said.

The estimated target date to commence production is around Q3 FY27, subject to securing the National Company Law Tribunal’s (NCLT) approvals for the resolution plan, it added.

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, it owns high-quality limestone reserves, ensuring a consistent and sustainable supply of raw materials for future production. It has a captive jetty in Kutch.

With this transaction, Nuvoco’s total cement production capacity is set to increase to 31 MMTPA, distributed as 19 MMTPA in the east, 6 MMTPA in the north, and 6 MMTPA in the west.

The implementation of the resolution plan is subject to the terms of the LOI and requisite approvals from the NCLT.