Nirma Cement Arm Expands with Gujarat Push

India’s cement sector is witnessing a new wave of expansion as one of its fastest-growing players, the cement division of Nirma Group, secures a strategic footprint in Gujarat through the acquisition of Vadraj Cement.

This move is poised to elevate the company’s national presence to 31 million tonnes per annum (mtpa), firmly positioning it among the top five cement producers in the country. The Vadraj Cement acquisition includes a 3.5 mtpa clinker facility in Kutch and a 6 mtpa grinding unit in Surat—assets that had remained dormant for nearly seven years. Officials confirmed that operations will resume by the third quarter of FY27, following an investment of approximately ₹1,000–1,200 crore to revive the plants. An upfront payment of ₹1,800 crore sealed the acquisition, highlighting the scale and ambition of the deal.

This acquisition is more than just capacity addition. It grants Nirma’s cement arm direct access to the western Indian market, with the added benefit of high-grade limestone reserves in Gujarat. These reserves, officials said, will ensure long-term sustainability of cement production, reducing dependence on external suppliers and mitigating logistical emissions—an important step toward eco-friendly industrial operations. The Gujarat entry complements the cement group’s established presence in eastern and northern India. Post-acquisition, its network will include 19 mtpa in the East, 6 mtpa in the North, and 6 mtpa in the West. The addition of Gujarat-based capacity diversifies the company’s geographical risk and balances freight economics, particularly with the integration of a captive jetty in Kutch. While export plans are not on the immediate agenda, the jetty significantly enhances domestic logistical efficiency.

This is not the company’s first strategic acquisition. In 2016, it entered the cement industry with a bold ₹9,000 crore acquisition of a French cement-maker’s India operations, followed by the ₹5,500 crore purchase of another major Indian cement brand in 2020. These moves consolidated its early market share, while the current acquisition reinforces its intent to be a long-term and sustainable player in the cement sector. Officials highlight that the company now operates 13 cement plants across eight states, with key production centres in Jharkhand, Bihar, Odisha, West Bengal, Chhattisgarh, Rajasthan, and Haryana. The largest of these is located in Jojobera, with a capacity of 6.5 mtpa. Across its network, the company holds 10 pit-head limestone mines, with a cumulative reserve of approximately 1,700 million tonnes.

Beyond market consolidation, the group’s strategy aligns with broader environmental and logistical sustainability goals. Cement production is one of the most emission-intensive sectors in manufacturing. The move to ensure raw material proximity and efficient transport links via captive jetties not only makes economic sense but also supports efforts toward lowering carbon footprints. Experts in industrial sustainability note that securing domestic limestone and leveraging multimodal logistics systems are vital to greening India’s infrastructure sector. In this context, the Gujarat expansion also signals the possibility of integrating greener cement technologies in the near future. While not yet announced, the use of blended cement and alternative fuels may become part of the company’s next phase of growth.

In recent quarters, the cement arm has continued its strong growth trajectory. During Q3 of FY25, the company reported a 16 percent year-on-year rise in consolidated cement sales, reaching 4.7 million metric tonnes. Revenue from operations stood at ₹2,409 crore for the same period, reflecting strong demand recovery and operational resilience. As India ramps up its infrastructure and housing projects, driven by government investments and private demand, the cement industry is entering a crucial phase of competitive consolidation. With capacity and logistics now spread across key regions, Nirma’s cement arm appears well-positioned to ride this growth wave.

The company’s challenge will now lie in effectively reviving Vadraj’s assets and ensuring environmental best practices are upheld during the expansion. However, officials remain optimistic that with the current capacity mix, strategic location, and limestone security, the business is structurally poised for long-term competitiveness. For Gujarat, this industrial revival also signals economic reactivation in regions like Kutch and Surat, where the plants will restart operations. The potential employment generation and local sourcing may contribute to the region’s development goals, especially if paired with sustainable industrial policies.

As India’s infrastructure ambitions grow, the need for responsible, decentralised, and resource-efficient cement manufacturing becomes paramount. The expansion of Nirma’s cement operations into Gujarat is more than a business manoeuvre—it could be a blueprint for how legacy businesses transition into greener, more resilient enterprises in the 21st-century industrial landscape.

Nirma Cement Arm Expands with Gujarat Push