Nuvoco Vistas Corporation Ltd, the building materials division of the Nirma Group, on Monday (January 6) said it has emerged as the successful resolution applicant (SRA) in the corporate insolvency resolution process (CIRP) of Vadraj Cement Ltd (VCL).
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The Committee of Creditors (CoC) has approved the resolution plan submitted by Nuvoco Vistas and a letter of intent (LOI) has been issued, confirming Nuvoco Vistas as the selected bidder for Vadraj Cement’s assets.
The transaction will be implemented by Vanya Corporation Private Ltd, a wholly-owned subsidiary of Nuvoco Vistas Corporation. Nuvoco intends to fund the transaction without a significant rise in its consolidated debt levels.
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A phased investment will be spread over 15 months towards the refurbishment of assets and to drive operational improvements across the VCL plants. The estimated target date to commence production is around Q3 FY27, subject to the National Company Law Tribunal (NCLT) approvals for the resolution plan.
The company anticipates significant benefits from this deal. The existing facilities include a 3.5 MTPA (10,000 TPD) clinker unit in Kutch, Gujarat, and a 6 MTPA grinding unit in Surat, Gujarat. Additionally, VCL owns high-quality limestone reserves, ensuring a consistent and sustainable supply of raw materials for future production.
The captive jetty in Kutch further enhances logistical efficiency. With this transaction, Nuvoco’s total cement production capacity is set to increase to approximately 31 MTPA, distributed as 19 MTPA in the east, 6 MTPA in the north, and 6 MMTPA in the west, consolidating its position as the fifth-largest cement group in India in the long term.
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The transaction, once consummated, is anticipated to foster substantial synergies with Nuvoco’s existing manufacturing facilities in Nimbol and Chittorgarh, Rajasthan, enabling enhanced operational efficiency.
“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,” it added.
Jayakumar Krishnaswamy, Managing Director, Nuvoco Vistas, said, “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.”
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“It complements our existing operations perfectly, expanding our geographic reach and operational capabilities. 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,” he added.
Shares of Nuvoco Vistas Corporation Ltd ended at ₹352.70, up by ₹0.10, or 0.028%, on the BSE.
