Nuvoco Vistas has been announced as the successful resolution applicant (SRA) from the insolvency resolution process of Vadraj Cement Limited (VCL).
According to Nuvoco, its resolution plan has been approved by the Committee of Creditors (‘CoC’), and a Letter of Intent (LOI) has been issued.
The transaction will be implemented by Nuvoco’s subsidiary Vanya Corporation Private Limited with the funding not expected to create a “significant rise” in Nuvoco’s consolidated debt levels. Nuvoco expects to undertake a phased investment across a period of 15 months, which will include asset refurbishments and what it calls “operational improvements” across VCL’s plants. This process will then enable production to begin in the third quarter of the 2027 financial year.
“This deal is a pivotal moment in Nuvoco’s journey, consolidating our position as the fifth-largest player in the Indian Cement Industry and further strengthening our market dominance. It complements our existing operations perfectly, expanding our geographic reach and operational capabilities,” said Jayakumar Krishnaswamy, managing director of Nuvoco Vistas Corp.
The transaction includes a 3.5 MMTPA (~10,000 TPD) clinker unit in Kutch, Gujarat, a 6 MMTPA grinding unit in Surat, Gujarat, and VCL’s limestone reserves. Under the terms of the deal, Nuvoco’s is set to increase to approx. 31 MMTPA, distributed as 19 MMTPA in the East, 6 MMTPA in the North, and 6 MMTPA in the West.
This goes alongside Nuvoco’s existing manufacturing facilities in Nimbol and Chittorgarh, Rajasthan. According to the company, it will have expanded its cement capacity by more than 20 per cent once the transaction is approved subject to customary conditions including the Honourable National Company Law Tribunal (NCLT) approvals for the Resolution Plan.
“This strategic investment will enhance our portfolio, diversify our offerings and enable us to deliver greater value and superior service to our customers in a competitive and dynamic business landscape,” Krishnaswamy said.
