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Cement Industries wobble in Q2

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With GST rolling over at the start of quarter of July-September 2017, the cement industry was caught off guard about the new process, but more than euphoric on the One Nation One Tax regime. Pegged under the highest slab rate of 28 per cent, the cement industry was found wobbling under the new tax regime due to the temendous paper work, added with the inconsistency in the chain’s backward and forward link. Other problems include the temporal problem fixing by the government and above all multiple rates for buying raw materials and selling final goods.

The GST rates and the processess kept tinkering in order to overcome pointed anomalies and issues relating to filing of the returns. Nevertheless, the quarter being seasonally dull for the cement industry due to low construction activity during monsoon, and with falling production volumes, the performance of most of the companies was under strain from both, the demand and the supply side. Further, points such as the avaliability of sand, the ban on the usage of petcoke and furnace oil will continue to haunt the cement companies. Nitin Madkaikar reviews the performance of cement companies during the quarter July to September 2017, only to come to a conclusion that there is long way to go under the new tax regime for all related activities to be on the same page.

Financial results of 33 large and small cement companies which represent around 50 per cent of the sales for the quarter ended September 2017 showed a growth of 12 per cent in top line in a year on year (YOY) comparison but down 16per cent sequentially (September over June). The bottom line was negative in both comparisons declining sequentially by 5.6 per cent and 42 per cent respectively. These companies are categorised into large (those with quarterly net sales of over Rs.1,000 crore), medium (those with net sales of Rs.200-1,000 crore) and small (companies with net sales of less than Rs.200 crore). The financial results of quarters ending September 2016, June 2017 and September 2017 are considered for review in this analysis.

In the previous quarter, (June 2017) the cement business had suffered due to the wholesalers and retailers reducing stocks prior to the Goods and Services Tax (GST) roll out. This quarter was mired by the implementation of the new tax regime, the GST, resulting in performance below market expectation. Nevertheless, the quarter is seasonally dull for cement business due to low construction activity during the South West monsoon.

Of the 33 companies under review, 10 companies posted declined in yoy sales (including 4 large) but QoQ decline was posted by 23 companies (including 6 large companies). So top line was down across categories and not for a particular category. Similarly, yoy net profits were down in 18 companies (including 7 large companies) while QoQ saw net profits down in 24 companies (including 8 large companies). This implies, the bottom line was adversely affected across all size of companies.

The overall profitability (Net Profit/Net Sales) was at 6.1 per cent in September 2017 quarter, down from 7.3 per cent in quarter of September 2016 and 9 per cent in quarter of June 2017. Almost all companies could manage to post positive margin excepting five companies who recorded net loss during the September 2017 quarter. Only three companies Ambuja Cements, Ramco Cements and OCL India could manage to maintain their margins across three quarters under review. 16 companies saw profitability drop below their levels a year ago while 24 companies saw profitability levels below previous quarter.

The weak performance can also be drawn from the macro factors like production. In Q1 2017-18, total cement production was down 3.3 per cent year on year (at 73 million tons) which could not revive in Q2 and fell again although marginally by 0.4 per cent (68 million tons). Thus, the first half of 2017-18 saw production fall 2 per cent compared to 5 per cent increase (in similar comparison) in the same period a year ago. The GDP growth also tapered in Q1 2017-18 to 5.7 per cent but recovered slowly to 6.3 per cent in Q2. Many GDP growth predictions for the year are revisited but mostly points towards a lower economic growth for the year.

Prospects
As per the predictions of industry experts, there will be a growth in the industry at 5-6 per cent CAGR between FY’17 and FY’20 and the domestic consumption is set to out pace the supply in the next three fiscal years. In the Union Budget 2017-18, Rs 22,500 crore was allocated to achieve government’s mission of ‘Housing for All by 2022’. the housing sector alone accounts for nearly 67 per cent of the total cement consumption in India. The increased allocation to rural low-cost housing under Pradhan Mantri Awaas Yojana- Gramin scheme to Rs 23,000 crore is likely to result in a rise of 2 per cent in the cement demand.

For the year, the cement demand is expected to register a modest rise of 1 per cent in 2017-18 pushed by pick-up in affordable and rural housing and road and irrigation projects, said rating agency ICRA. As per the agency, the cement offtake was weak in first half of the year which extended into October due to factors like weak real estate activity, sand shortage and GST implementation issues. However, new project announcements from private sector will remain weak. The demand is expected to rebound in from the fourth quarter of the year as against the earlier expectation of the third quarter, the rating agency said.

Company-wise Performance Ambuja Cement
Ambuja Cement delivered strong numbers while focusing on brand building, through differentiated offerings for individual home builders, building and infrastructure segments. According to Ajay Kapur, Managing Director and CEO, the company’s strategy to focus on key markets, premium products and value based pricing has paid off, leading to strong net sales and EBITDA growth.

During July-September 2017 quarter Ambuja Cement recorded higher sales and growth in value-added pricing, but it also faced cost pressures relating to rising fuel costs, packaging and raw material prices. Thus, there has been a move to increase the use of petcoke and alternative fuels further, as against 67 per cent it achieved in June 2017. Ambuja Cement’s net sales rose 14 per cent YOY to Rs 2,320 crore even as sales volume grew slower at 11.6 per cent to 5.02 million ton. Net profits, however, moderated 2 per cent to Rs 272 crore for the quarter. EBITDA per ton rose 3 per cent to Rs 706.

UltraTech cement
UltraTech Cement reported a 28 per cent decline in net profit (in standalone) to Rs 431 crore for the quarter ended September 2017. It had clocked net profit of Rs 601 crore in the July-September 2016. The company’s net sales were up 6.1 per cent at Rs 6,571 crore during Q2 2017-18 as against Rs 6,196 crore in same quarter the year-ago.

This quarter continued to witness increasing cost trends, attributable to increase in fuel price while total expenses were up 11per cent at Rs 6,095 crore as against Rs 5,491 crore. Depreciation increased 59 per cent to Rs 499 crore while interest cost doubled to Rs 376 crore due to cost involving new cement plant acquisition. Meanwhile, EBITDA increased 24 per cent to Rs 1,350 crore, translating into EBITDA/ton of Rs 1,028 and margin of 21per cent.

The company stated that the acquisition of cement plants of Jaiprakash Associates and Jaypee Cement Corp had helped it augment capacity to 93 million ton per annum. The acquisition has also enhanced its footprint in the high growth markets of central India, eastern UP and coastal Andhra Pradesh, where the company has been focusing to increase its presence.

ACC
Ace cement maker ACC reported over two-fold increase in net profit to Rs 178 crore for the quarter ended September 2017, largely driven by increased productivity and cost optimisation. Net sales was up 24 per cent Rs 3,116 crore for the quarter under review against Rs 2,519 crore in the corresponding period a year ago.

According to the company, the strong result is the reflection of increased focus on premium products, improved customer service levels and relentlessly driving productivity and cost optimisation.

The company expect demand for cement to remain favourable in the coming quarter spurred by the government’s increased spending on infrastructure.

Prism Cement
The company reported net sales for Q2 at Rs 2,238 crore but posted net loss of Rs 24 crore in quarter versus net profit of Rs 17 crore in the corresponding quarter of 2016-17.

The company’s volumes were impacted due to near complete sand mining ban in UP and Bihar, which together constitutes approximately 70 per cent of the sales. Further, a slowdown in the execution and new launches of real estate projects due to RERA registration of existing projects impacted volumes of tiles and ready mixed concrete segment.

Shree Cement
Financial results of Shree Cements were a mixed set of earnings in quarter ended September 2017, as it was slightly better than the low expectations.

According to H M Bangur, Managing Director, the worst seems to be over for the cement industry – the impact of demonetisation, GST now behind. The company expect better results in Q3 because of low base effect.

Availability of sand was a problem for the cement makers but believes to be over soon. Historically, demand for cement in Q3 is maximum, Bangur pointed out.

Shree Cement expects demand to grow 15per cent in next three years with sales volumes up 12per cent in 2017-18 for the company and able to achieve sales of 20 million tons against 18 million tons last year. However, pressure on margins will increase in transportation costs and freight costs. The freight costs have increased 17per cent YoY, at Rs 200 a ton during the quarter.

The Supreme Court’s ban on use of petcoke and furnace oil in Delhi-NCR region will not impact the company since it follows all emission standards of using Petcoke.

India Cements
India Cements reported net profits of Rs 24 crore for the quarter ending September 2017 against Rs 62 crore during the same quarter previous year. Net sales during the quarter came down to Rs 1,268 crore as against Rs 1,314 crore last year. The financial numbers are not comparable with last year since sales include excise duty besides its subsidiary Trinetra Cements was merged with it.

According to N Srinivasan, Vice-Chairman and Managing Director, the ‘sluggishness’ in performance cannot be attributed alone to demonetisation introduced last year or GST or general economic slowdown, but a combination of all three factors. However, absence of freely availability of sand was also a reason. In Tamil Nadu cement volume could not rise despite the demand. He also stated that this was the first time the company witnessed a de-growth.

OCL India
Although performance of OCL in the Q2 improved, it fell short of expectations as the numbers were weaker than expected. While net sales declined 3 per cent , net profit fell 8 per cent.

JK Cement
The company reported over two-fold increase in its net profit to Rs 93.14 crore for the quarter ended September 2017 and net sales up 3 per cent at Rs 1,108 crore in the quarter. The company, part of the US$4 billion JK Group, operates integrated cement facilities at Sirohi (Rajasthan), Durg (Chhattisgarh), Kalol and Surat (Gujarat) and Jharli (Haryana).

Birla Corp
Birla Corporation, a large cement company, saw net profit plunge 84 per cent to Rs 4 crore on higher expenses. Net sales declined 10 per cent to Rs 797 crore in the September quarter compared to Rs 887 crore in the year-ago period. Total expenses increased 17.6 per cent in Q2 while finance cost almost doubled to Rs 105 crore during the quarter under review.

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Economy & Market

The Road Ahead Begins Here

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The future of India’s roads took centrestage at RAHSTA Expo 2026, where policymakers, contractors and industry leaders came together under one roof. The event blended thought leadership, technology showcase and industry recognition into a single powerful platform.

India’s roads and highways community gathered in full strength at the Jio World Convention Centre, Mumbai, for the 16th edition of the RAHSTA Expo (Roads and Highways Sustainable Technologies & Advancement). Over two action-packed days, the event brought together policymakers, contractors, consultants, developers, equipment manufacturers, material suppliers, technology providers and investors to deliberate on the future of India’s ,infrastructure while showcasing the latest innovations driving the sector.

The event culminated in the prestigious RAHSTA Awards, where Shri. Ajay Tamta, Union Minister of State for Road Transport & Highways, felicitated organisations and professionals for their outstanding contributions to road construction, engineering, safety, sustainability and technology. With leading contractors, senior government officials, industry veterans and technology providers under one roof, the event reaffirmed RAHSTA’s position as one of India’s most influential platforms for the roads, highways, bridges and tunnels ecosystem.

Organised by FIRST Construction Council in association with ASAPP Info Global Group, RAHSTA has steadily evolved beyond an exhibition into a platform where policy, technology, engineering and business converge to address the opportunities and challenges shaping India’s next generation of transport infrastructure.

Beyond expansion, towards value

The conference opened with a thought-provoking address by Pratap Padode, Founder and Editor-in-Chief, Construction World, who observed that India’s highways sector has reached an important inflection point. Introducing this year’s theme – ‘From Expansion to Value: The Next Phase of India’s Highways’ – he noted that while the country has successfully expanded its road network over the past two decades, the industry’s priorities are now shifting towards building infrastructure that delivers greater lifecycle value, durability, safety and operational efficiency. With funding pressures, asset monetisation and evolving project models changing the sector’s dynamics, he said the focus must now move beyond kilometres constructed to the quality and long-term performance of every asset.

Dr Brijesh Dixit, Managing Director, Maharashtra State Infrastructure Development Corporation (MSIDC), reminded delegates that successful infrastructure delivery is ultimately a collective effort. Emphasising on collaboration between government, industry and engineering professionals, he remarked, “There is no loser in a winning team, and there is no winner in a losing team,” urging stakeholders to work together to deliver projects with quality, financial sustainability and technological excellence.

Delivering the keynote address, Bidur Kant Jha, Director, New Technologies for Highway Development, Ministry of Road Transport & Highways (MoRTH), outlined the Government’s long-term vision for India’s highway network. Highlighting the country’s 6.26 million km roads network, he spoke about the growing adoption of digital planning tools such as BIM and GIS, bridge health monitoring systems and Integrated Smart Transport Corridors under the Vision 2047 roadmap. He emphasised that while India remains open to global innovations, every new technology must be adapted to Indian conditions before large-scale deployment.

Addressing the gathering during the awards ceremony, Tamta underlined the increasing role of specialised equipment and modern construction technologies in executing complex infrastructure projects across diverse terrains. Referring to challenging tunnel projects in Uttarakhand, he noted how advanced machinery has transformed execution capabilities, while also acknowledging the rapid evolution of Indian contractors into globally competitive infrastructure companies. Recognising excellence through industry awards, he said, motivates organisations to continually raise performance standards and embrace innovation.

Meanwhile, Dr Sanjay Mukherjee, IAS, Metropolitan Commissioner, MMRDA, highlighted that infrastructure development must increasingly focus on integrated urban mobility. Reflecting on Mumbai’s engineering journey – from its historic underground utility network to the Coastal Road and other transformative projects – he underlined that future infrastructure planning must seamlessly integrate roads, metro systems and public transport to create efficient, multimodal cities.

Uttar Pradesh takes centrestage

One of the highlights of the second day was Uttar Pradesh’s comprehensive presentation on its infrastructure-led industrial transformation.

Srihari Pratap Shahi, IAS, Additional CEO, Uttar Pradesh Expressways Industrial Development Authority (UPEIDA), demonstrated how the state’s expanding expressway network is evolving into a catalyst for industrial development through integrated manufacturing and logistics clusters. Expressways, he noted, are no longer merely transport corridors but engines of economic competitiveness.

Building on this narrative, Deeksha Jain, IAS, Additional Chief Executive Officer, Uttar Pradesh State Industrial Development Authority (UPSIDA), showcased the state’s rapidly expanding industrial ecosystem supported by extensive expressway connectivity, dedicated freight corridors, airports, industrial townships and investor-friendly policies. She highlighted Uttar Pradesh’s strong manufacturing growth, expanding industrial land bank, plug-and-play infrastructure and increasing use of digital governance to facilitate investments.

Further underlining the significance of the platform, Deepak Kumar, IAS, Infrastructure & Industrial Development Commissioner, Government of Uttar Pradesh, remarked, “RAHSTA provides an excellent platform for states to showcase our infrastructure progress and investment ecosystem. Uttar Pradesh has transformed significantly over the past decade, backed by more than 34 investor-friendly industrial policies, and platforms like RAHSTA help communicate these developments to industry stakeholders from across the country.”

Ideas that shaped the industry conversation

The two-day conference featured seven panel discussions, each examining a critical dimension of India’s evolving roads and highways sector.

The opening discussion on ‘Financing Roads & Highways in a Capital-Constrained Era’ brought together experts from Cube Highways, NIIF, SBI Capital Markets, Centrum Capital and Bandhan Infra Fund, who examined how the financing landscape is changing. Discussions revolved around asset monetisation, InvITs, institutional investments and new funding structures, with panellists agreeing that better project preparation, transparent governance and predictable returns will be crucial for attracting long-term capital into infrastructure.

Attention then shifted to execution realities during the panel on ‘Contractors’ Perspective: Execution Realities, Risks & the Quality Imperative.’ Representatives from GHV Infra Projects, PNC Infratech, NCC and Maccaferri candidly discussed the challenges of delivering projects amid contractual complexities, land acquisition delays, rising costs and tight timelines. While execution pressures remain significant, the discussion reinforced that better collaboration across the project value chain is essential for achieving both speed and quality.

Day 2 opened with a technically rich discussion on ‘Designing Roads for Sustainability, Durability & Climate Resilience’. Experts from CSIR-CRRI, IIT Bombay, IIT Madras, Zydex Group and SRMB Steel explored advanced pavement technologies, recycled materials, climate-resilient designs and scientific construction practices that can significantly improve durability while lowering lifecycle costs. Sustainability, they agreed, must become an integral part of road design rather than an afterthought.

The subsequent session on ‘Bridges & Tunnels: Complex Engineering, Safety & Future Readiness’ highlighted the growing complexity of India’s infrastructure projects. Panellists discussed advances in structural engineering, digital monitoring, risk management and safety practices that are enabling the successful delivery of increasingly ambitious bridge and tunnel projects across the country.

Technology remained a recurring theme during the discussion on ‘Technology as a Risk-Mitigation Tool for Developers & Investors’. Experts explained how AI, BIM, drones, predictive analytics, digital twins and intelligent monitoring systems are helping improve project planning, minimise execution risks, strengthen quality assurance and enhance asset management throughout the infrastructure lifecycle.

The construction equipment panel brought together leading industry experts to examine how technology, sustainability and digitalisation are redefining construction equipment in an era of rising cost pressures. Discussions centred on enhancing productivity, reducing lifecycle costs and preparing the industry for India’s infrastructure ambitions leading up to 2047.

The conference concluded with an engaging CXO Forum on ‘Rebuilding Confidence in India’s Roads & Highways Sector’, where senior industry leaders emphasised that stronger governance, better project preparation, digitalisation, transparent contracting and closer public-private collaboration will be essential to sustain India’s infrastructure growth over the coming decades.

Technology and recognition under one roof

Beyond the conference halls, RAHSTA Expo reflected the technological transformation underway across India’s road infrastructure ecosystem. Leading equipment manufacturers, technology companies and material suppliers showcased advanced construction equipment, intelligent digital platforms, pavement technologies, structural materials and productivity-enhancing solutions designed to improve project efficiency and asset performance. The exhibition created valuable opportunities for contractors, consultants, government agencies and project developers to evaluate new technologies while interacting directly with solution providers.

The event also served as a celebration of excellence through the RAHSTA Awards 2026, which recognised outstanding achievements across road construction, contracting, materials, equipment, technology, safety, sustainability and infrastructure development. Presented by Minister Tamta, the awards honoured organisations that are setting new benchmarks for quality, innovation and execution across India’s roads sector.

RAHSTA Expo 2026 also received extensive support from across the infrastructure ecosystem. Alongside leading corporate sponsors, the event was backed by industry bodies including the Builders Association of India (BAI), Construction Equipment Rental Association (CERA), Consulting Engineers Association of India (CEAI), International Road Federation (IRF), CSIR-CRRI, CILT India, All India Transporters Welfare Association, Hydraulic Trailer Owners Association (HTOA), Gujarat Contractors Association, Bitumen Forum, Fluid Power Society of India, Indian Institute of Material Management, Ministry of Ports, Shipping and Waterways, Gati Shakti Vishwavidyalaya and Mumbai First, reflecting the industry’s collective commitment to advancing India’s road infrastructure.

As the curtains came down on the two-day event, one message resonated throughout the conference: India’s highways story is entering a new chapter. While expansion will continue, the future will increasingly be defined by smarter planning, stronger partnerships, digital transformation, sustainable engineering and long-term value creation. By bringing together the entire infrastructure value chain on a single platform, RAHSTA Expo 2026 once again demonstrated why it has become one of the country’s most influential forums for shaping the future of roads, highways, bridges and tunnels.

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Economy & Market

Fornnax Names Lukas Baur as Authorised Service Partner to Bolster EU Operations

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Strapline: Fornnax Technology has appointed NOBA Maschinenservice’s Lukas Baur as its authorised service partner for the European Union, strengthening its commitment to delivering fast, reliable, and localised after-sales support across the region.

Fornnax Technology, a leading manufacturer of industrial shredding solutions, has announced the appointment of Mr. Lukas Baur of NOBA Maschinenservice as its authorised service partner for the European Union. The partnership, formalised under the authorisation of Fornnax CEO Mr. Jignesh Kundaria, reinforces the company’s commitment to providing dependable, localised service support to its expanding customer base across Europe.

Strengthening Service Through Proven Expertise

With over two decades of experience in servicing, maintaining, and overhauling industrial shredders, Mr. Baur brings extensive technical expertise to the partnership. His capabilities span welding, hardfacing, shaft and knife rebuilding, complex assembly, hydraulics, and complete electrical engineering services, delivered in collaboration with a trusted partner company based in Halle/Saale.

Operating from Worbis, Germany, Mr. Baur is strategically positioned to provide emergency support across the European Union within 24 hours, covering an operational radius of approximately 1,000 kilometres.

Supporting this capability is a well-equipped service infrastructure comprising 12 Mercedes Sprinter service vans, a team of 24 skilled technicians, specialised bearing-change tools, a fully equipped hydraulic workshop, and a 1,000-square-metre facility with a five-ton crane track. Together, these resources position his team to manage the complete spectrum of Fornnax’s European service requirements efficiently and reliably.

Partnership Driven by Industry Insight

Having spent years servicing Eldan, Lindner, and Vecoplan shredders across the European recycling industry, Mr. Baur’s decision to collaborate with Fornnax is rooted in his understanding of market needs and customer expectations. His experience has provided valuable insight into what recycling plant operators require—not only from their machinery but also from the service teams supporting them.

According to Mr. Baur, Fornnax’s reputation for robust machine construction, superior wear protection, and maintenance-friendly design made the partnership a natural fit.

The collaboration comes at a time when Europe’s tyre recycling industry is facing mounting challenges, including rising cost pressures, shrinking margins, delayed investments, and a shortage of skilled labour. Mr. Baur believes these conditions reinforce the need for technically strong service partners capable of delivering rapid, dependable support.

Commenting on the partnership, he said, “Fornnax, with its exceptional price-performance ratio and superior quality, has the potential to become a market leader in Europe. We would like to be their service partner in this journey.”

Comprehensive Support Across the Equipment Lifecycle

As Fornnax’s authorised service partner, Mr. Baur will oversee the complete lifecycle support of the company’s equipment throughout the European Union. His responsibilities will include installation, commissioning, preventive maintenance, emergency repairs, and spare parts support across mechanical, hydraulic, and electrical systems.

Looking ahead, he also plans to develop a centralised spare parts distribution hub for European customers, particularly if Fornnax establishes a warehouse facility in Worbis to facilitate faster deliveries. To further strengthen service coverage, Mr. Baur intends to expand operations by adding two to three additional service teams and vehicles each year, progressively increasing capacity across the continent.

A Shared Commitment to Customer Excellence

Highlighting the strategic importance of the partnership, Mr. Jignesh Kundaria, Director and CEO of Fornnax, said:

“We strongly believe that by continuously improving our service quality and customer satisfaction index, we can build long-term relationships with our customers. Higher customer satisfaction leads to greater trust, which significantly increases repeat orders and ultimately drives sustained growth in our sales revenue.”

This customer-first philosophy underpins Fornnax’s strategy of building a dedicated European service partner network instead of relying solely on remote support. With Mr. Baur joining this network, customers across the European Union will benefit from faster response times, expert technical assistance, and dedicated on-ground support from a partner with extensive experience in high-throughput shredding operations.

Mr. Baur’s appointment also reflects Fornnax’s broader ambition to establish itself as the preferred shredding solutions provider for the European recycling industry, marking another important milestone in the company’s international growth strategy.

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Concrete

Nuvoco Vistas launches Limla cement plant, expands Gujarat footprint

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Nuvoco Vistas opens a 2 MMTPA grinding unit at Limla, entering Gujarat and advancing its target of 35 MMTPA capacity by FY 2028.

Surat (Gujarat)

Nuvoco Vistas Corporation Ltd, a part of Nirma Group and one of India’s leading building materials company, has inaugurated the Limla Cement Plant in Surat (Gujarat), one of Vadraj Cement Limited’s (VCL) principal manufacturing facilities. The commissioning represents a key milestone in Nuvoco’s acquisition and restoration of VCL, while supporting the company’s expansion across the Western Indian cement market.

Vadraj Cement Limited is a subsidiary of Nuvoco Vistas Corporation Limited and has installed cement capacity of 6 MMTPA across its assets. The Limla inauguration therefore represents the first operational step in the acquired platform’s wider revival, while the Kutch facilities provide clinker supply, mineral security and coastal logistics support for the western business.

Nuvoco completed its acquisition of Vadraj Cement Limited, then under the Corporate Insolvency Resolution Process, after paying a consideration of Rs 1,800 crore in June 2025. VCL’s asset portfolio comprises a clinker unit at Kutch and a grinding unit at Limla in Surat. It also includes high-quality captive limestone reserves and a captive jetty at Kutch, supporting more efficient logistics. Following the takeover, Nuvoco began an extensive programme of restoration, refurbishment and expansion at both locations, leading to the commissioning of the Limla plant.

The Limla Cement Plant is expected to support a phased increase in sales volumes across Gujarat. It will also help Nuvoco supply neighbouring markets in Western Maharashtra and release cement capacity from its northern plants, which can consequently be redirected towards markets in North India. The plant will manufacture a full portfolio comprising Ordinary Portland Cement, Portland Slag Cement, Portland Pozzolana Cement and Portland Composite Cement. It will additionally produce the complete Nuvoco Duraguard range, including the premium Nuvoco Duraguard Microfibre product. The acquisition is also expected to generate operational synergies with Nuvoco’s existing plants at Nimbol and Chittorgarh in Rajasthan, improving logistics optimisation and market reach across important regional markets.

The grinding unit at the Limla Cement Plant was completed ahead of schedule, with 2 MMTPA of capacity now inaugurated to expand Nuvoco’s operating scale and customer reach. After Vadraj Cement’s assets become fully operational, plants in North and West India are expected to account for nearly 40 per cent of Nuvoco’s total cement capacity. This will broaden the company’s manufacturing network, strengthen access to high-growth markets and support its plan to increase consolidated cement capacity to 35 MMTPA by FY 2028, reinforcing its longer-term growth strategy.

Commenting on the development, Jayakumar Krishnaswamy, Managing Director, Nuvoco Vistas Corp Ltd, said: “The inauguration of the Limla Grinding Unit in Surat is an important milestone in Nuvoco’s growth journey and demonstrates our commitment to disciplined, value-accretive expansion. Gujarat is strategically significant for Nuvoco, with substantial opportunities arising from infrastructure investment, industrial growth, rapid urbanisation and continuing demand from the housing and construction sectors. The facility strengthens our regional footprint, improves operational flexibility and increases our ability to serve customers across northern and western markets with greater reliability and efficiency.”

He added: “Through the Vadraj acquisition, we have refurbished and restarted a strategically important asset, returning it to operations in record time through strong execution and collaboration between teams. The achievement demonstrates our ability to create value from acquired assets, fulfil our commitments and retain the confidence of stakeholders. It also highlights the strength of our project delivery capabilities and our continued focus on building sustainable, profitable growth over the long term.”

Nuvoco Vistas Corporation Limited is a building materials company whose vision is to build a safer, smarter and more sustainable world. It is among the leading players in East India and has a significant presence across North and West India. Nuvoco began operations in 2014 with a greenfield cement plant at Nimbol, Rajasthan. It later acquired Lafarge India Limited, which had entered India in 1999, followed by Emami Cement Limited in 2020 and Vadraj Cement Limited in April 2025. The company has also announced an expansion in eastern India through a new grinding mill at the Arasmeta Cement Plant, supported by several debottlenecking programmes involving equipment upgrades, process improvements and internal capacity initiatives. These developments place Nuvoco on track to achieve total cement capacity of approximately 35 MMTPA. The company reported total income of Rs 11,362 crore in FY 2025-26, reflecting its continuing growth trajectory.

Nuvoco operates a diversified portfolio across three segments: Cement, Ready-Mix Concrete and Modern Building Materials. Its cement portfolio includes Concreto, Duraguard, Double Bull, PSC, Nirmax and Infracem, covering Ordinary Portland Cement, Portland Slag Cement, Portland Pozzolana Cement and Portland Composite Cement. Its pan-India RMX business provides value-added products under Concreto for performance concrete, Artiste for decorative concrete, InstaMix for ready-to-use bagged concrete, X-Con covering M20 to M60 grades, and Ecodure for specialised green concrete. Nuvoco has supplied materials to projects including the Mumbai-Ahmedabad Bullet Train, Birsa Munda Hockey Stadium in Rourkela, Aquatic Gallery at Science City in Ahmedabad, and metro railway projects in Delhi, Jaipur, Noida and Mumbai.

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