Nuvoco Vistas Corp To Acquire Vadraj Cement

Nuvoco Vistas Corporation Ltd, the building materials arm of the Nirma Group, announced on January 6 its selection as the successful resolution applicant for Vadraj Cement Ltd (VCL) through the corporate insolvency resolution process (CIRP). This acquisition is expected to bolster Nuvoco’s market position and enhance its production and operational capabilities, marking a significant milestone in its growth journey.

Strategic Acquisition to Enhance Capacity and Efficiency

Nuvoco Vistas emerged as the preferred bidder after its resolution plan was approved by the Committee of Creditors (CoC). A letter of intent (LOI) has confirmed the company’s acquisition of Vadraj Cement’s assets. The transaction will be carried out through Vanya Corporation Private Ltd, a wholly-owned subsidiary of Nuvoco. To ensure minimal impact on its consolidated debt, Nuvoco plans to implement a phased investment strategy over 15 months, focusing on refurbishing VCL’s assets and improving operational performance.

The deal includes VCL’s key facilities, such as a 3.5 MTPA clinker unit in Kutch, Gujarat, and a 6 MTPA grinding unit in Surat, Gujarat. These assets, coupled with high-quality limestone reserves and a captive jetty, provide a robust foundation for future production and logistical efficiency. Nuvoco plans to begin production around Q3 FY27, subject to National Company Law Tribunal (NCLT) approvals for the resolution plan.

Market Position and Synergy with Existing Facilities

With the acquisition of Vadraj Cement, Nuvoco’s total cement production capacity will increase to approximately 31 MTPA, distributed as 19 MTPA in the east, 6 MTPA in the north, and 6 MTPA in the west. This expansion solidifies its standing as the fifth-largest cement producer in India. Additionally, the transaction is expected to create synergies with Nuvoco’s existing facilities in Nimbol and Chittorgarh, Rajasthan, improving operational efficiency and logistics optimisation.

The company anticipates significant benefits, including a strengthened supply chain, better market access, and enhanced competitiveness across key regions. Jayakumar Krishnaswamy, Managing Director of Nuvoco Vistas, highlighted the strategic importance of this acquisition, stating that it reinforces the company’s dominance in the Indian cement industry.

Nuvoco Vistas Share Performance

As of January 07, 2025, 1:35 PM, the shares of Nuvoco Vistas were trading at ₹353.50 with a surge of 1.07% from its previous day’s closing price.

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