Concrete

Nuvoco Vistas Corp Wins Bid for Vadraj Cement

The estimated target date for the commencement of production is around Q3 FY27.

Published

2 years ago

January 7, 2025

admin

Cement maker Nuvoco Vistas announced that it has emerged as the successful applicant for Vadraj Cement, which is currently undergoing a corporate insolvency resolution process. The resolution plan submitted by Nuvoco has been approved by the Committee of Creditors (CoC), and a Letter of Intent (LOI) has been issued, according to a statement by Nuvoco Vistas Corp.

Although the financial details were not disclosed, the company mentioned that the transaction would be implemented by Vanya Corporation, a wholly-owned subsidiary, and the company plans to fund the transaction without significantly increasing its consolidated debt levels.

Nuvoco further stated that a phased investment would be spread over 15 months for the refurbishment of assets and to drive operational improvements across Vadraj Cement (VCL) plants. The estimated target date for the commencement of production is around Q3 FY27, subject to approvals from the National Company Law Tribunal (NCLT) for the resolution plan. VCL’s existing facilities include a 3.5 MMTPA clinker unit in Kutch, Gujarat, and a 6 MMTPA grinding unit in Surat, Gujarat.

In addition, VCL owns high-quality limestone reserves, ensuring a sustainable supply of raw materials for future production. The captive jetty in Kutch also enhances logistical efficiency.

With this transaction, Nuvoco’s total cement production capacity is set to increase to approximately 31 MMTPA—19 MMTPA in the east, 6 MMTPA in the north, and 6 MMTPA in the west—strengthening its position as the fifth-largest cement group in India for the long term.

Nuvoco Vistas Corp’s Managing Director, Jayakumar Krishnaswamy, commented that the deal consolidates their position as the fifth-largest player in the Indian cement industry and further strengthens their market dominance. He also added that the deal complements their existing operations by expanding their geographic reach and operational capabilities, which will enhance their portfolio, diversify their offerings, and enable them to provide greater value and superior service to their customers in a competitive business landscape.

Nuvoco stated that once the transaction is completed, it is expected to create substantial synergies with its existing manufacturing facilities in Nimbol and Chittorgarh, Rajasthan, leading to enhanced operational efficiency. This will help optimise logistics, streamline operations, improve competitiveness, and provide better market access and a strengthened supply chain across key regions.

In February of the previous year, the NCLT admitted the insolvency process of Vadraj Cement after Punjab National Bank (PNB) filed a plea over a default of over Rs 870.45 million. Media reports indicated that Adani Group, JSW Cement, and ArcelorMittal were competing to acquire VCL, which had a total debt of Rs 70 billion owed to several lenders, including Union Bank of India, Central Bank of India, Indian Overseas Bank, Bank of India, Bank of Baroda, and PNB.

Earlier in August 2018, the Bombay High Court had ordered the winding-up of Vadraj Cement following a case filed by trade creditor Beumer Technologies India. However, the court later recalled the order and transferred the matter to the NCLT bench.

Up Next

Fornnax Wins ‘best Brand 2024’ Award in Recycling Industry by the Economic Times

Don't Miss

JK Lakshmi Cement Urges GST Cut, Plans Expansion in Bihar

Concrete

Cement Firms to Invest Rs. 130 bn in Green Energy by FY28

Cement companies plan to expand clean energy capacity to 6 GW by FY28

Published

1 day ago

September 17, 2026

admin

India’s major cement companies are set to raise their clean energy capacity to 6 GW by March 2028 from around 4 GW at the end of March 2026, according to ratings agency ICRA. The planned expansion is expected to involve investments of Rs. 130 bn over the next two years.

The additional capacity could generate annual savings of Rs. 62 bn to Rs. 67 bn, resulting in an estimated payback period of 1.8 to 2.2 years. Cement is an emission-intensive industry, and leading producers have established net-zero roadmaps covering the next 15 to 20 years.

The calcination process accounts for 57 to 60 per cent of the sector’s total emissions, while fuel combustion contributes 27 to 30 per cent and electricity consumption accounts for 10 to 13 per cent. ICRA said the figures highlighted the need for a broad decarbonisation strategy involving green power, blended cement, alternative fuels and improvements in clinker efficiency.

Green energy is considered one of the most commercially attractive decarbonisation options because it can reduce emissions while lowering operating costs. Every 5 per cent increase in green power replacement can reduce power and fuel costs by Rs. 15 to Rs. 16 per tonne. A 25 per cent replacement level could therefore save Rs. 75 to Rs. 80 per tonne and expand operating margins by 140 to 160 basis points.

Cement producers are also assessing carbon capture, utilisation and storage, although high implementation costs, energy requirements and limited transport and storage infrastructure are expected to slow commercial adoption. The government has proposed Rs. 200 bn over five years to support deployment across key sectors. Meanwhile, companies are targeting thermal substitution rates of 10 to 15 per cent over the next three to five years, compared with the current industry level of around 6 per cent.

Concrete

Centre Defers Clearance for Limestone Mine Near Bustard Habitat

Panel seeks revised mining plan and safeguards for pipelines and wildlife

Published

2 days ago

September 16, 2026

admin

The Centre has deferred environmental clearance for a proposed limestone mine near a Great Indian Bustard habitat in Ramgarh, Rajasthan’s Jaisalmer district. The critically endangered species has an estimated wild population of about 130 in India.

Concrete

Telangana to Supply Subsidised Cement for Indiramma Houses

Poor families allotted Indiramma houses to receive cement at Rs. 230 per bag

Published

2 days ago

September 16, 2026

admin

The Telangana government will supply cement at a subsidised price of Rs. 230 per 50-kg bag to poor and low-income families allotted Indiramma houses. The prevailing market price is between Rs. 310 and Rs. 320 per bag, the Assembly was informed on Thursday.