Economy & Market

Looking EAST

Published

9 years ago

January 31, 2018

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Vaibhav Agarwal of PhillipCapital India reviews the ups and downs of the cement industry in 2017 and also shares the expectations from the industry in 2018.
The year 2017 has remained a challenging year for the cement industry. As per the Department of Industrial Policy & Promotion, cement production fell 2 per cent yoy in April-October 2017. However, the validity of these numbers is uncertain. GV’s checks pointed at 3-4 per cent industry growth in this period, most of which was led by east-India markets. The demand in the east remains most robust (in double digits) followed by central, north, south, and west markets. Cement manufacturers who have been through a consolidation phase or have increased their capacities (organically or inorganically) continue to outperform in terms of volume growth. The industry saw multiple challenges in 2017, most of which were structural and permanent, including:
Latent effect of demonetisation – mainly dented the southern markets
GST rollout – though this was not a major concern, it created teething troubles in the initial months
Strict loading compliances severely dampened the earnings of several manufacturers – Shree Cement remains the worst affected (led to its de-rating by nearly 20 per cent)
Accommodating the largest consolidation move in the sector – UltraTech acquiring Jaypee
Sand mining bans dented cement demand in several states
Pet-coke ban (implemented by the Supreme Court of India, subsequently withdrawn on a conditional basis)Latent effect of demonetisation
In the initial phases of demonetisation, the southern markets, being less-cash, were least impacted. However, this less-cash nature was limited to the cement distribution system while end markets such as real estate and contractors continued to depend on cash and were negatively affected, which in turn hurt distributors. In order to keep business as usual, cement distributors sought support from cement manufacturers in the form of extended credit periods, which increased the working capital cycle of the industry, especially of southern manufacturers.GST rollout for the cement sector
The rollout was smooth, except for initial teething troubles and a few structural changes in the distribution system, which impacted short-term demand dynamics. The rollout led to the proportion of ex-factory sales increasing multifold, as all buyers were inclined to take full credit of the GST impact by paying the requisite GST on freight component. Because of GST, the differential EBITDA contribution gap between trade and non-trade sales reduced significantly (to just about Rs 10 per bag say from Rs 20-25 earlier), as the differential in cost of sales for cement manufacturers narrowed. While this was more of an initial challenge (now streamlined), it is a key structural change in the distribution system of the sector (but for the better).Strict loading compliances: The dampener
After GST, and given the very strong retaliation on overloading by various NGOs/environmentalists, it is a thing of the past for the cement sector. Ground checks revealed extremely strict adherence to overloading norms in almost all regions of the country. GST has made it extremely difficult for cement manufacturers to not to comply with truck-loading norms, as the processes of invoicing and transportation have become much more transparent. It is very unlikely that this will reverse, and ground checks suggest a sustained impact of Rs 4-10 per bag (depending on region of operation and lead distance travelled).
North and east markets have seen very high overloading in the past, so much so that few plants in east India were shut on grounds on non-compliance to environmental norms. The overloading practices of these plants were severely damaging the roads around the plant and hurting the local habitat. In order to avoid local agitation, in many cases, loading compliance has also been applied to dumpers for limestone transfer from mines. Manufacturers such as Shree Cement have been worst hit, visible in the structural de-rating of the stock by nearly 20 per cent.UltraTech buying Jaypee
This was the sector’s largest consolidation move which had wide-ranging implications. It impacted the distribution dynamics of the states in which the acquisitions were made as UltraTech needed to be accommodated in terms of volume share. Volume pushers such as Shree Cement had to compromise on its volume push strategy – likely to be visible in its Q3 numbers. Another problem was the difference in the mindsets of the managements of UltraTech and Jaypee. While UltraTech has always been predominantly a brand-conscious company, Jaypee’s business model has been based on a volume-push strategy. It was difficult to convince erstwhile Jaypee distributors to come on board UltraTech’s strategy.Sand-mining bans dent demand
Sand is essential for cement usage. For manufacturing concrete, with every tonne of cement nearly four tonnes of sand is needed. For all other usage, for every one tonne of cement nearly eight tonnes of sand is required. Broadly, the ballpark ratio of cement to sand is 1:6. Many state governments of the country such as Tamil Nadu, Bihar, West Bengal, Rajasthan, and Uttar Pradesh have been regularly intervening in sand mining, denting the availability of sand. The worst impacted state is Tamil Nadu, where no resolution seems to be in sight. Various NGOs and environmentalists have raised regular concerns about sand mining, because in many cases this activity is done beyond the allotted quota, leading to illegal sand mining. As a result, many states are now depending on ‘crush sand’ for their requirements. The problem is that all states do not have enough crush-sand infrastructure (factories, licenses) – and this continues to affect sand availability. Though this issue is longstanding, 2017 was one of the worst years for cement demand because of lack of sand availability in the states mentioned above.
Pet coke ban implemented by the Supreme Court, subsequently withdrawn In November 2017, the Supreme Court of India issued an order implementing a ban on pet coke usage by cement manufacturers in overall plant operations in Rajasthan, Haryana, and Uttar Pradesh. GV found that many cement manufacturers in other regions voluntarily changed their fuel (to coal from pet coke) anticipating a ban. Few state governments also issued ‘soft notices’ to cement manufacturers; while these did not outright ban pet coke, they seemed to advise cement manufacturers to stop using or avoid using pet coke.
The industry filed a petition arguing that as long as emission norms of cement factories are within prescribed environmental norms, the industry should be allowed to use any fuel. This plea was partially successful and cement manufacturers were allowed to use pet coke in kiln operations, subject to the plant fulfilling environmental norms. However, the power plants may not be able to use pet coke again. This was another setback for the industry in 2017, and if this stay, which lasted for nearly a month, is implemented permanently, it will definitely have cost implications for cement manufacturers.
All the issues that the industry faced in 2017 are structural and will have long-term implications for the sector:

After demonetisation, the distribution network, aggregate manufacturers, and other raw material suppliers have learned to be more organised.
GST brought more parity to the industry’s product mix and in many markets the realisations and EBITDA contribution from trade and non-trade sales have moved more closer.
The largest cement major of the sector UltraTech acquiring Jaypee has brought major consolidation into the sector, which will take a couple of quarters more to play out. It will be a challenging task for both UltraTech and as well as the industry to accept this consolidation move – from UltraTech’s perspective the key challenge will be to ramp up its consolidated capacity utilisation and garner additional premium for products sold from acquired Jaypee plants. This implies improving base cement prices in these markets, which is a long-term structural positive for the sector.
The most crucial issue, which may continue to overhang the industry in 2018, will be sand – and it will remain state-specific. Tamil Nadu does not seem to have a resolution in the medium term; hence, demand is likely to remain low in this state. Rajasthan has implemented fresh bans towards the end of November 2017. Availability issues in other states are yet to be fully resolved. The key takeaway from this issue in 2017 is that respective states are likely to roll out permanent measures to address the problem of sand availability (by installing more crush sand factories, issuing new licenses, monitoring sand mining more stringently). Though these measures will take time to fall in place, they should help to prevent sand issues cropping up again.
The pet-coke ban overhang is over for now, but the learning for cement manufacturers is that their plant operations can be interrupted if they do not comply with environmental norms. It is fair to assume that all cement manufacturers are now making doubly sure that plants consistently remain environment friendly, as this will mean lesser complications in the future.

Overall, 2017 has set a roadmap for cement manufacturers and largely addressed or has brought clarity to many structural issues that were directly or indirectly affecting the sector over the last many years. Going forward, the focus of cement manufacturers will remain limited to core business issues. Their performance will be more consistent as norms are now prescribed or being prescribed for several issues which have been impacting them consistently in the past.2018 roadmap
Demand will pick up in 2018 with the pre-election period round the corner; general elections are due to be held in India by 2019 to constitute the seventeenth Lok Sabha. Therefore, 2018 is the only year left for the government to prove its on-theground execution. Construction activity picks up generally 15 months before general elections and this momentum sustains until about 2-3 months before elections. Historically, cement demand growth in pre-election years has been 5-7 per cent. The key risk to 2018 is that if demand does not revive in 2018, cement demand revival will remain questionable until the end of CY19.
With Aachar Sanhita (model code of conduct for political parties) being implemented before elections, new projects cannot be executed. Demand until the end of election will remain sustainable only from the existing projects. Even after the general elections are over, the new elected government usually remains preoccupied with the making policy agendas and cabinet formation. Hence, a good six months in 2019 can be written off with no incremental demand likely from any new projects except for projects that were already under execution before the Aachar Sanhita is announced.Ear to the ground

Demand in many pockets such as Andhra Pradesh, Telangana, and the whole of east India remains robust. These regions continue to register double-digit yoy growth. Demand in Andhra Pradesh and Telangana is being driven by fast-track execution of irrigation and infrastructure projects while in east India, infrastructure, housing, and projects to build toilets are driving demand.
Underperforming states like Karnataka have registered a near double-digit yoy growth in recent months. Recovery is seen as a given in Maharashtra and Gujarat.
Tamil Nadu and Kerala are unlikely to turn around in 2018 because of lack of political stability and sand issues.
Rajasthan was impacted by sand issues towards the end of November 2017. Still, the demand in this state remains reasonable. Building toilets has contributed significantly to demand in Rajasthan.
Demand in other pockets of north India is also picking up. Demand in Uttar Pradesh has gained momentum after sand issues were been partially resolved. Strong revival is seen in this state in 2018.
Overall, demand sentiment is seen rising in 2018 driven by infrastructure, housing, irrigation, and projects related to building toilets gathering pace. Signs of recovery are already visible in specific areas. The worst in terms of demand seems over and demand should improve from here.

What to expect
The industry has been able to gain clarity on several structural issues in 2017. The way forward in 2018 will only be consistency in performance, improvement in operating matrix, and improvement in overall operating parameters. There are still a few notable consolidation moves pending in the industry, which would be meaningfully favorable in the long term. Recent media articles have suggested a strong possibility of Binani Cement being taken over by few cement majors. Names such as UltraTech, Dalmia Bharat, Shree Cement, and a few PE funds have been in the limelight for this deal. Dalmia Bharat has also already confirmed through a press release that it is looking at acquiring Murli Industries. These deals are likely to be executed in 2018, but since these cases are referred to NCLT, the execution timelines may elongate.
Dalmia Bharat seems the strongest and most aggressive candidate to grow inorganically in 2018. Cement majors such as UltraTech and Shree may face the CCI hurdle in large acquisitions in north India. For other mid-tier cement manufacturers such as JK Cement, JK Lakshmi Cement, and India Cements, improving their operating-cost matrix, garnering better market shares through ramp up of utilisations and improving EBITDA contribution through better branding and cost savings will be
the key.
Composite cement is also likely to be a new and big change for the industry in 2018. Cement manufacturers such as Ambuja and JK Lakshmi have already taken this initiative in a few pockets of east India and have been able to garner a premium of Rs 15-20 per bag. Composite cement will add a big cost lever to the industry, as it significantly improves the blending ratio, though the prospects of manufacturing composite cement will be limited to markets where slag is available. 2018 should be a turnaround year for the cement industry and the beginning of a fresh upcycle. Stability of the cost curve, better brand premium and branding exercises, and steady ramp ups in utilisations are the key factors to watch. On the downside, if 2018 proves disappointing, the industry will continue to struggle until CY19.
The article is authored by Vaibhav Agarwal of PhillipCapital 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.