Nuvoco Vistas Corp, a leading cement manufacturer in East India, has taken a significant step by acquiring Vadraj Cement under the Corporate Insolvency Resolution Process, further solidifying its position in the Indian cement industry. This strategic move is expected to increase Nuvoco’s production capacity by over 20% and elevate its position as the fifth-largest cement group in India.
Nuvoco Secures Acquisition of Vadraj Cement
The acquisition of Vadraj Cement, previously owned by ABG Shipyard and based in Gujarat, will significantly boost Nuvoco’s production capacity, adding a 6 million tonne grinding unit in Surat and a 3.5 million tonnes clinker capacity in Kutch, Gujarat, to its existing 25 million tonne capacity.
Key Highlights of the Acquisition
Nuvoco’s total cement production capacity is expected to reach approximately 31 million tonnes per annum (MMTPA), with 19 MMTPA in the East, 6 MMTPA in the North, and 6 MMTPA in the West. The acquisition will be completed through Nuvoco’s subsidiary Vanya Corporation, formed in November last year.
The company plans to fund the acquisition without significantly increasing its consolidated debt levels, which stood at Rs 4,501 crore as of September-end. Nuvoco aims to reduce its debt to Rs 3,500-4,000 crore by March 2025.
Investment Plans and Timeline
Nuvoco will invest in Vadraj Cement over the next 15 months to refurbish its assets and enhance operations, with the goal of beginning production by the December quarter of 2026-27. The acquisition is expected to significantly benefit Nuvoco’s growth prospects and cement its position in the Indian market.
Benefits of the Acquisition
The acquisition of Vadraj Cement secures Nuvoco’s future growth prospects, providing additional production capacity and enhancing its market presence. With this strategic move, Nuvoco solidifies its position as a major player in the Indian cement industry, marking a significant milestone in its corporate journey.
