Economy & Market

Will PPPs in affordable housing succeed?

Published

9 years ago

December 30, 2017

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Urbanisation is central to a country’s economy – and in India, the urbanisation rate corresponds to 60 per cent of the country’s GDP. For smoother transformation of a developing nation like India, the need of the hour is to manage the process of urbanisation. The rapid pace of urbanisation has given rise to many grave issues – one of them being housing shortage.
Urban land in India, constituting 3.1 per cent of the country’s land area, presents a complex situation where high urban densities co-exist with sub-optimal utilisation (India Habitat Report, 2016). The inward migration of massive chunks of population from rural areas and peri-urban areas to urban areas in search of livelihood and better living conditions is continually exacerbating the shortage of housing in our cities.
As a result, a new socio-economic category known as the ‘urban poor’ has emerged. The Center and States have taken up the challenge of providing ‘Housing for All’ in India’s cities and towns, and several housing policies and missions have been launched to provide shelter to this new category of citizens. Building bye laws and building codes have been modified, loan disbursals have been eased, and interest subsidies have been provided in the banking financial system to reach out to this class of the population.
Though the recent census data highlights that the housing shortage rate in India’s urban areas declined from 1.63 million to 0.39 million in 2011; nevertheless, the larger problem persists. In India, private sector players, which include developers and housing finance companies, tended to primarily target housing for the HIG (higher income group), resulting in sustained supply and competition in this segment.
While the government is, on the other hand, focused on providing shelter to the poor and EWS (economically weaker sections), the results of these efforts have been largely insufficient. Also, the housing requirements of the LIG (lower income groups) are being grossly neglected, and there is a serious dearth of affordable housing to cater to this segment of society. By combining the strengths of private players with those of the public sector, the challenges of providing affordable housing can be overcome. Superior outcomes are achievable via case-specific PPP structures with appropriate allocation of risks and value creation.Mammoth housing shortage
Thanks to incessant demand, the housing sector in India is one of the fastest-growing industries in the country. It is one of the biggest employers, and has direct or indirect impacts on all sectors of the economy. In fact, the real estate industry is the third-largest contributor to the Indian economy, and the housing sector contributes 85 per cent of the total real estate activity. As per JLL estimates, the urban housing shortage till 2022 stands at 15.97 million units. By government estimates, the shortage in 2012 stood at 18.78 million units, of which, 96.5 per cent (estimated by the end of 2017) is in the LIG and EWS combined.
A report by the Technical Group on Housing Shortage (TG-12) mentions that states like Uttar Pradesh, Maharashtra, West Bengal and Andhra Pradesh have higher housing shortage, accounting for to 7.61 million units. It is correctly inferred that though there is significant shortage of LIG and EWS category housing (17.96 million units in 2012), the supply in urban areas – which largely caters to MIG and HIG category buyers – represents a significant inventory overhang and is not selling well at all.
The government’s mission of ‘Housing for All by 2022′ seeks to provide a credible and viable answer to this pressing question, and focuses on single-window clearances, construction of 84,460 affordable houses in 5 states of India, and various other efforts to create low-cost housing. These initiatives have definitely had a positive impact on the housing sector. However, not much of a dent in the overall affordable housing shortage has so far been made. According to a report by the Ministry of Housing and Urban Poverty Alleviation (MHUPA), urban housing stock has increased from 52.06 million to 78.48 million units in the past decade. Another review observes that the skyrocketing prices of housing stock and congestion of stock in limited areas have contributed significantly to keeping a majority of the urban poor homeless.
The Union Budget of India 2017-2018 has led impetus to affordable housing and the infrastructure segment, and the announced tax benefits and proposed changes in the long-term capital gains tax will boost players’ confidence in these projects. This is an important step to attracting private players to this segment and thereby improving the supply of low-cost houses in India. Drawing from global cues
The challenge of providing affordable or inclusive housing exists all across the world. A distinct ‘housing trap’ exists as even rental housing is becoming increasingly expensive, with house ownership becoming a distant dream, insufficient social housing creation and the number of wait-listed applications growing every year in many countries.
The housing crisis is certainly escalating. To resolve it, many developed countries have become proactive with subsidies and incentives for providing housing to the less economically privileged segment:
In Singapore, 82 per cent of the population resides in social housing. The country’s housing policy emphasises the ownership rather than the rental model, and provides consummate subsidies to first-time house buyers. Another notable practice can be observed in Seoul, the capital of South Korea, where older housing stock becomes available to low income households by redeveloping it in appropriate locations under the concept of inclusive planning. In Philippines, a penalty is imposed if land is kept idle for too long instead of making it available for housing development.
In Spain, FSI incentives have enabled developers to sell affordable units at a 1/3rd price compared to the prevailing market rates. PPP policy
To attract private developers to affordable housing, the Indian government recently drafted a new policy on ‘Public Private Partnerships for Affordable Housing’ in an attempt to overcome the challenges and maximise financial gains by tapping the potential of such projects. The new policy has devised various models of PPP to achieve these gains and moderate associated risks.
The models are prepared for two cases – the first being for instances where the Government leases the land, and the second for when a private developer has to identify the land. The second case is further bifurcated into two scenarios. In the first scenario, development is carried out in partnership (the Analytic Hierarchy Process or AHP system) and in the second, when development is carried out on the basis of the Credit Linked Subsidy Scheme (CLSS). The policy also talks about several other features like cross subsidy, fast approvals, etc. If both the market risks and sales are high, this policy will ensure a successful PPP model in the affordable housing segment.Success stories
Affordable housing refers to housing units that the section of society whose income is below the median household income can afford. While the term ‘Affordable Housing’ has been bandied about extensively and this segment is inherently very promising, the multiple associated concerns have in the past caused most developers to divest in this sector.
The biggest challenge in this sector is implementation against a backdrop of a very unclear policy framework. Other constraints are the lack of supply of developable land at reasonable prices, higher construction costs, unsupportive development control norms – and, not least of all, lack of easy access to home finance for the low income groups.
Though the Government is working hard towards addressing these issues by taking strategic steps, the policy framework must be strengthened further to stimulate growth and deliver sufficient relief to LIG home buyers. Implementation must be simplified and clarified if more investors and developers are to be attracted to this sector. At the end of the day, affordable housing provides a plethora of opportunities to all stakeholders, and the private sector can bridge the deficit by introducing innovative construction practices which can reduce costs and improve project financing, marketing and sales.
Even before the ‘PPP Policy on Affordable Housing’ was announced, many Indian states had policies which attempted to effectively implement affordable housing schemes. In the 2001-2006 policy period, states like Maharashtra, Uttar Pradesh, Gujarat and Andhra Pradesh made first attempts to formulate township policies which included provisions for affordable housing, as well.
Since then, there have been many changes and reforms in these policies. For instance, Andhra Pradesh’s latest affordable housing policy suggests four different models in which private developers are encouraged via fast-tracked clearances and approvals, FSI incentives, timely payments and the flexibility for developers to determine the sale price of the affordable houses (with approval from the authority). It also suggests a rental housing model wherein rent would be fixed by the Government.
Benefits such as exemptions in service tax, trade license fees, stamp duty etc. are provided for affordable rental housing units. Andhra Pradesh’s development control regulations also include an allocation of 10 per cent of total built-up area for LIG and EWS housing in all townships, group housing and gated community projects.
Alternately, the regulations call for allocation of proportionate land to the Government, to be used for public welfare in the form of housing or civic infrastructure, urban open spaces, etc.
In Maharashtra, a special Township Policy was formulated in 2004 to attract private players to cater to the demand for LIG and MIG housing. However, this resulted in only 17 projects in 11 years (2004-2015). After the state took a serious look at this shortfall in implementation, amendments were proposed in the policy. The new ‘Housing Policy and Affordable Housing Plan’ unveiled in 2015 targets 50,000-100,000 affordable houses to be constructed every township, each township must have an area of 40 hectares, and there can be as much as 100 per cent of permissible FSI if the area has a sufficient potential and can potentially achieve realistic targets.
Also, ‘in-situ’ slum redevelopment projects with private participation in the state provided 1,592 dwelling units for eligible slum dwellers by leveraging the locked potential of public land under slums and including them as formal urban settlements. The project was executed in eight packages consisting of eight locations in Ahmedabad city (Gujarat) and provided 1,592 dwelling units of about 27 sq. carpet area with basic civic infrastructure like water supply, sewerage system, internal road connectivity with street lights, etc. 83 eligible slum dwellers owning commercial spaces were each allotted shops of 15 sq m carpet area.
This project’s USP was that additional FSI and Transferable Development Rights (TDR) were generated and awarded to the private partner, which made the slum redevelopment project financially viable. The private partner provided the eligible slum dwellers rental transit accommodation for the entire construction period at Rs 6,000 per month.Take away
The success of affordable housing initiatives depends on the proactive involvement of various stakeholders, including private sector players, operating with a clear roadmap of roles and responsibilities. Innovative PPP models must be explored to yield win-win scenarios for all involved partners and encourage private developers to participate more in this competitive market.
As per the PPP policy, both ownership and rental models backed by an institutional structure should result in the right kind of housing supply to reach its designated end users effectively. States should have their own township policies earmarking dedicated zones for affordable housing. Incentives in the form of land lease, FSI, reduction in stamp duty and exemption from other associated taxes will significantly reduce project costs.
With the deployment of the Real Estate (Regulation and Development) Act [RERA] in 2016, which also focuses on timely completion of projects and adoption of innovative technologies like prefab and pre-cast housing, there is a hope for effectively covering the demand/supply gap. Unlocking older housing stock by redeveloping dilapidated structures and adding them to the overall supply of affordable housing will help in a big way. If the PPP policy is able to regularise, monitor and encompass the all-important principles of inclusiveness, equity, environmental sustainability and transparency, they will certainly succeed.Authors: – The article is authored by A Shankar, National Director and Head of Operations – Strategic Consulting, JLL India.

Economy & Market

The Road Ahead Begins Here

Published

1 day ago

August 11, 2026

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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.

Economy & Market

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

Published

3 weeks ago

July 23, 2026

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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.

Concrete

Nuvoco Vistas launches Limla cement plant, expands Gujarat footprint

Published

1 month ago

July 13, 2026

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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.