Nuvoco Vistas Successfully Secures Vadraj Cement Assets in Insolvency Resolution Process
Nuvoco Vistas Corporation Ltd., India’s fifth-largest cement manufacturer and a key player in the East, has successfully emerged as the Resolution Applicant in the ongoing Corporate Insolvency Resolution Process (CIRP) of Vadraj Cement Limited (VCL). The Committee of Creditors (CoC) has approved Nuvoco’s Resolution Plan, and a Letter of Intent (LOI) has been issued, marking a significant step forward in the deal. The acquisition will be executed through Vanya Corporation Private Limited, a wholly owned subsidiary of Nuvoco Vistas. The company plans to fund the transaction without significantly increasing its consolidated debt levels, with investments being spread out over 15 months. These funds will be primarily directed towards refurbishing assets and improving operational efficiency across VCL’s plants. Nuvoco aims to commence production at VCL’s facilities by the third quarter of FY27, contingent upon receiving approval from the Hon’ble National Company Law Tribunal (NCLT).
The acquisition includes VCL’s 3.5 MMTPA clinker unit located in Kutch, Gujarat, and a 6 MMTPA grinding unit in Surat, Gujarat. The deal also adds high-quality limestone reserves and a captive jetty in Kutch, ensuring a steady and sustainable supply of raw materials and enhancing logistical efficiency. As a result of the acquisition, Nuvoco’s cement production capacity will increase to approximately 31 MMTPA, with the capacity distribution as 19 MMTPA in the East, 6 MMTPA in the North, and 6 MMTPA in the West. This expansion will strengthen Nuvoco’s position as India’s fifth-largest cement group, solidifying its long-term market dominance. The transaction is expected to generate significant synergies with Nuvoco’s existing plants in Nimbol and Chittorgarh, Rajasthan. These synergies will enhance operational efficiency, optimise logistics, streamline processes, and improve competitiveness, providing Nuvoco with enhanced market access and a more robust supply chain across key regions.
Jayakumar Krishnaswamy, Managing Director of Nuvoco Vistas Corp. Ltd., stated, “This deal represents a pivotal moment in Nuvoco’s growth trajectory. It consolidates our position as a leading player in the Indian cement industry and strengthens our market presence. This acquisition aligns perfectly with our existing operations, expanding our geographic footprint and operational capabilities. We are confident this strategic investment will enhance our portfolio, diversify our offerings, and deliver increased value to our customers in an increasingly competitive market.”
