Nuvoco Vistas has received approval from the National Company Law Tribunal to acquire Vadraj Cement Limited (VCL).
The acquisition is set to be made with an upfront payment of 1,800 crores as agreed in the terms of the resolution plan. The acquisition will be undertaken through Nuvoco’s wholly-owned subsidiary Vanya Corporation which will subsequently be merged with VCL and VCL will become a wholly-owned subsidiary of Nuvoco.
“This deal consolidates our position as the fifth-largest player in the Indian cement industry. This will drive logistics optimisation, streamline operations, and improve competitiveness, providing the company with better market access and a strengthened supply chain across key regions and enable us to deliver greater value and superior service to our customers in a competitive and dynamic business landscape,” Nuvoco Vistas Corp managing director Jayakumar Krishnaswamy said.
The acquisition would increase Nuvoco’s installed cement capacity by over 20 per cent. VCL’s facilities include a 3.5MM TPA (10,000 TPD) clinker unit in Kutch, Gujarat, and a 6MMTPA grinding unit in Surat, Gujarat. It also has limestone reserves that will supply raw materials for future production.
Nuvoco will additionally invest approximately 1,000 – 1,200 crores to revitalise the assets. According to the company, the assets have been suspended for close to the last seven years. A phased investment will be spread over 15-18 months from the date of actual handover by the Committee of Creditors towards getting the facility running and driving operational improvements across the VCL plants. The estimated target date to commence production is around Q3 FY27.
