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.