Economy & Market

Building up Capacity

Published

12 years ago

January 31, 2015

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2015 will be another year of more consolidation in the cement industry where quality players may take over smaller inefficient and high cost players with weak cash flows.
As per reports, the results of the government?s initiatives have already started reflecting in the growth of the cement industry to 8.5 per cent in the first eight months of the current fiscal. If this momentum gains further, the cement demand will again pick up a double digit growth. Even with 10 per cent growth, this will accelerate the cement production by over two-and-a-half times, to 665 MT in the next ten years, i.e. by 2024, which would require a cement capacity of around 750 MT at 90 per cent utilization. This will call for an additional investment of about Rs 2.5-3 lakh crore for creating another 390 MT of cement capacity. Concretisation of roads, dedicated freight corridors, development of smart cities, metro rail projects, are some of the major thrust areas of the government, which will drive cement consumption in coming year. At the same time, as per industry sources, 2015 will be another year of more consolidation in the cement industry where quality players may take over smaller inefficient and high cost players with weak cash flows. Impact of consolidation According to Manoj Misra, Chairman and Managing Director, Cement Corporation of India, large cement players in India will use the acquisition route to enhance capacity and market share; and in the long term smaller plants will not be able survive. Says Misra, ?The top five players will hold 70-80 per cent of capacities and market in the next decade; there is expectation that more global players would come into India as they would like to get a foothold in the market as the demand will propel in the emerging economies.?

Says Prashant K Tripathy, Group Head – Manufacturing, Dalmia Cement Bharat, Cement industry has experienced more change in the last decade than its entire history. With the demand in the cement sector poised to grow over 9 per cent in the next two years, increase in prices is a huge concern. Thus, consolidation helps in stabilizing prices? Tripathy adds,?There has been and increased focus on infrastructure and development with growth in demand in housing and industrial sector, with growing Indian GDP. Entry of foreign cement players resulted in the consolidation of the fragmented industry. Large number of mergers and acquisitions were witnessed in recent years.?

Explaining to what extent this is going to alter the market structure Misra adds, ?To better serve their markets, companies will combine their operations and streamline their offerings. Efficiencies of scale allow businesses to reduce costs and prices and ease decisions for potential investors. As a business segment ages and matures, numerous companies may find themselves offering the same products, at roughly the same price and quality, to the same market. The competition drags down sales and profits, while businesses struggle to innovate and remain viable. The answer in this situation is market consolidation: the takeover of the small by the strong through outright purchase or merger. By merging or acquiring, combining operations, closing factories and reassigning workers, a firm can reduce costs and improve profit margins. In addition, cutting redundant administrative workers and combining sales and marketing divisions can significantly lessen labour and head-office costs. This action reduces competition and tends to boost prices. That?s not so good for the consumer, perhaps, but it?s a natural cyclical development in the business realm.? He further adds, ?Global giants like Holcim and Lafarge have joined hands and their estimated capacity in Indian market is now at 65 million tonne. Indian giant Aditya Birla is also in the mode of acquiring and merging with small units throughout India to maintain its leadership position. AB group has also expanded its capacity to 59 million tonne, but has plans to enhance further to maintain its leadership. Hence the cement industry will be controlled mainly by two giants. The market will be dictated by the two groups in matter of pricing and supplies.?

Speaking about the positive impact of consolidation in the cement industry, Arvind Pathak, Chief Executive Officer, Reliance Cement Company says, ?Consolidation being witnessed in the industry is good and is in the right direction. Serious players increasing stakes in terms of manufacturing capacity is a good indicator of long term growth and stability for cement markets. Large players given the available financial headroom and scale of operation are expected push the industry towards operational efficiency and better service quality to the consumers. Consolidation will ensure not only healthy competition but also high level of quality and service assurance to the end consumers.? He adds, ?The Indian cement markets are poised for unprecedented growth on the back of both infrastructure as well as growth in the housing sector. This can be witnessed in the structural changes in the Indian economy being proposed by the present government. Reliance Cement is gearing up accordingly to cater to the upcoming demand and our capacity addition plans are in line with the expected demand in the coming years.?

Says Noopur Jain, Assistant Vice President, ICRA, ?Of late, there has been some activity of acquisition in cement industry. Indian cement industry is still fragmented and can see some consolidation of assets to synergise. But I have not seen any exits by most companies except those who are facing liquidity crunch. More than consolidation, the more important input in pricing will be the demand-supply because although some sort of consolidation is happening by way of acquisitions, it is not changing the structure of the industry.?

Capacity utilization
After expanding at an average rate of 8-10 per cent in the last three decades, the cement growth in 2013-14 had dwindled to 3 per cent, the lowest in the last 20 years, due to slowdown in the economy and deceleration in the construction activities. With cement production at 256 MT against a capacity at 360 MT, the cement industry was saddled with an idle cement capacity of over 100 MT valuing a colossal dead investment of over Rs 70,000 crore at today?s cost. What will be the impact of lower capacity utilization on the industry as a whole? Says Tripathy, ?We are expecting that the capacity utilization in 2015-16 will be better than current financial year, giving a positive impact on the company bottom-line. The advantages of consolidation have been witnessed for over a decade now since sustained merger and acquisition activity in cement has led to much improvement in profitability and valuations in the sector.? He adds, ?During 2007-12, the cement capacity in India almost doubled to around 300 MTPA. Our capacity utilisation has adequate margin in the Tamil Nadu and AP plants therefore we may be able to fulfill the market demands. Our cement plants in India have grown manifolds in terms of capacity; we are also acquiring some new plants to increase the volume and expand further.?

?While it may be correct when we say the cement industry is projected to operate at 70-75 per cent in the near terms – a closer look at the expected regional performance is required. The central region where Reliance Cement is currently present is expected to operate far better than other areas. Our expectation is that the capacity utilisation in this region would be close to 90 per cent if not more and hence we foresee a positive impact on our performance,? says Pathak. He adds, ?We have current capacity of 5.8 MTPA, operating from four locations – Maihar (Satna), Kundanganj (Raebareilly), Butibori (Nagpur) and Durgapur. We have another 10 MTPA in the immediate pipeline. Capital expenditure is expected to be in the range of Rs 7,000-7,500 crore.?

Cement industry was at its all-time low in FY 14 with a marginal growth by 3 per cent and there was an excess capacity. Now we see a reversal in that trend as the demand has grown. In the first eight months of the current FY, the demand has grown by 8.5 per cent as compared to 3 per cent last fiscal. Says Jain, ?In the previous fiscal, since there was excess capacity existing, there was a slowdown in fresh capacity additions. With the demand is growing now, we expect the excess capacity to be absorbed by the industry in the next 2-3 years and expect the utilization level to improve in medium term from around 72 per cent to 78 per cent by 2017. As per industry trends, the capacity addition in the next two years is going to be in the range of 20-25 million tonne per annum. However, some of these projects will be running with delays and may face execution challenges or they may come up in the middle of the year with the effective capacity addition. I think the demand improvement will be the key for the overall utilization level to improve in future. Also the stable government at the Centre has taken steps to speed up the execution of various projects. All these are going to materialise in the coming 2-3 years.?

Jain adds, ?Although the utilisation level will improve from the current level of 70-72 per cent to 78-80 per cent in a couple of years, it will be still lower than what we saw in the peak of FY 06 and FY07 when India was witnessing a very high growth rate. That time the utilisation level touched 90s and even 100 per cent.? According to him even though there is a surplus capacity in the system, most of the cement players will keep announcing new capacities. This is because many existing plants are very old and they won?t be so efficient. So the players will set up new facilities to increase operational efficiency.

Speaking about the demand scenario, Misra says, ?The metro rail projects in Mumbai, Bangalore and Hyderabad and the expansion phase in Delhi drive cement demand in this segment. Concrete roads and national highways, rural linkage roads, development of smart cities, hydel dams, river canal lining and linkage and many other infrastructure related. Airports modernization across major cities will also expand demand. Huge demand of cement is expected to emerge as the above projects are expected to roll out in the entire country. With the huge demand coming, greenfield and brownfield units are going to be set up and by 2020 it is expected that the installed capacity in India would be 500 million tonne.? Misra adds, ?With CCI and its present operating units at Tandur in Telangana, Rajban in Himachal Pradesh (nearer to Uttarakand) and Bokajan in Assam will have the opportunity to maximize its capacity utilisation. We are in process of setting up a new clinkerisation unit at Bokajan and close circuiting at Tandur and Rajban to enhance the existing capacity.?

Challenges
Speaking about the challenges Jain says, ?On the demand side, there needs to be a big push from the government sector to speed up investment in infrastructure and housing, which is happening but it is to be seen whether this is happening on a sustainable basis. Major challenge faced by the industry is the cost. Major cost components are the freight cost, power and fuel cost and raw material cost. The raw material cost is increasing at a steady level, but the freight cost increase is steep due to increase in diesel prices and subsequent raise of freight rates by Indian Railways and other transport and logistics firms. This is happening at a time when the industry is already facing the slowdown.?

Misra is on the same page. He says, ?The rising cost of production attributed mainly due to high price of energy and coal is adversely affecting the industry. Also there is at time the issue of availability of railway rakes. Transportation at times by road and especially for loose cement movement is a challenge in front of the industry. Another aspect is the taxes which forms about 60 per cent of the price of cement (taxes/duties direct and indirect). There is a pressing need to rationalise the tax structure.?

Pathak had this to say. ?It may be observed that while the manufacturing facilities are concentrated around the limestone belts these facilities are catering to the entire nation. Cost of logistics account for over 35 to 40 per cent of the total delivered cost of cement to the end consumers. Innovations have taken place in terms of adoption of split grinding/blending facilities bringing down the cost of logistics however; availability of railway infrastructure (rakes, reach and unloading facilities), roads and fragmented transportation service providers pose a major challenge to the industry to increase efficiency in terms of total delivered cost of cement. We as an industry have to start looking at sea route and inland water ways to effectively and efficiently cater to the upcoming demand and start investing in developing these infrastructures. Says Tripathy ?Our current capacity is 20 million tonne of cement including the group plants in Odisha and newly acquired Bokaro grinding unit. We have existing plants in Tamil Nadu three lines, AP one kiln, Meghalaya one kiln and a grinding unit in Assam near Guwahati. We are currently executing two green field projects, one near Belgaum in Karnataka and the other one in Assam. These two projects will be commissioned in year 2015 and will add another 3 million tonne to our current capacity making a grand total of 23 million tonne per annum.?

However, the long term growth seems to be intact. The government?s continuous thrust on and commit?ment for, affordable housing, construction of cement concrete roads, creation of 100 smart cities, world-class infrastructure development, with emphasis on development of freight corridors and ports connectivity should give a definite fillip to the creation of more demand for cement in the country.

Agith G Antony with input from Sudheer Vathiyath

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.