Nuvoco Vistas receives NCLT approval to acquire Vadraj Cement for ₹1,800 crore

THEBUSINESSBYTES BUREAU

MUMBAI, APRIL 4, 2025

The Hon’ble National Company Law Tribunal (NCLT), Mumbai Bench, has approved the Resolution Plan submitted by Nuvoco Vistas Corp. Ltd. for the acquisition of Vadraj Cement Ltd. (VCL) under the corporate insolvency resolution process as per the Insolvency and Bankruptcy Code, 2016 (IBC). The approved plan includes an upfront payment of ₹1,800 crore. Nuvoco plans to fund the transaction without materially increasing its consolidated debt levels.

The acquisition will be executed through Vanya Corporation Private Ltd., a wholly owned subsidiary of Nuvoco. As per the Resolution Plan, Vanya will be merged with VCL, following which VCL will become a wholly owned subsidiary of Nuvoco Vistas Corp. Ltd.

Nuvoco will further invest approximately ₹1,000–₹1,200 crore to revive and operationalize VCL’s assets, which have remained non-operational for nearly seven years. This phased investment will be deployed over 15–18 months from the date of actual handover by the Committee of Creditors. The goal is to restart operations and implement performance enhancements across VCL’s facilities. Commercial production is expected to commence by Q3 FY27.

VCL’s infrastructure includes a 3.5 MMTPA (10,000 TPD) clinker unit in Kutch and a 6 MMTPA grinding unit in Surat, both located in Gujarat. The company also holds high-quality limestone reserves, ensuring a steady and sustainable supply of raw materials. A captive jetty at the Kutch plant adds further value by enhancing logistical efficiency.

Post-acquisition, Nuvoco’s total cement production capacity will rise to approximately 31 MMTPA, reinforcing its position as India’s fifth-largest cement group.

Commenting on the development, Mr. Jayakumar Krishnaswamy, Managing Director, Nuvoco Vistas Corp. Ltd., said, “This acquisition strengthens our position as the fifth-largest player in the Indian cement industry. It will enable us to optimize logistics, streamline operations, and improve competitiveness. With better market access and a reinforced supply chain across key regions, we are poised to deliver enhanced value and superior service to our customers in a dynamic and competitive environment.”