Nirma Group’s Nuvoco Vistas to Acquire Vadraj Cement Through NCLT
Nuvoco Vistas Corp, a cement subsidiary of the Nirma Group, announced on Monday its successful bid to acquire Vadraj Cement through the corporate insolvency resolution process (CIRP). The acquisition is expected to bolster Nuvoco’s cement capacity by 20%, increasing it from 25 million tonnes per annum (MTPA) to 31 MTPA. The transaction, described by Nuvoco as a “value-buy,” includes Vadraj Cement’s existing infrastructure: a 3.5 MTPA clinker unit in Kutch, a 6 MTPA grinding unit in Surat, and significant limestone reserves. While these facilities are currently non-operational, Nuvoco plans to invest in a phased refurbishment over 15 months to resume production by Q3 FY27, subject to necessary approvals. The resolution plan has already been approved by Vadraj Cement’s committee of creditors, with a Letter of Intent (LoI) issued to Nuvoco. The acquisition will be executed by a wholly-owned subsidiary, without significantly increasing the company’s debt burden, according to Nuvoco. Nuvoco, promoted by Niyogi Enterprise of the Nirma Group, has grown significantly since its 2016 acquisition of Lafarge India’s assets in a $1.4 billion deal. In 2020, it acquired Emami Cement for ₹5,500 crore, further strengthening its position as India’s fifth-largest cement producer by capacity. Vadraj Cement, formerly ABG Cements, was admitted to the National Company Law Tribunal (NCLT) in 2024 due to financial distress, with admitted claims totaling ₹8,180.61 crore. The acquisition aligns with Nuvoco’s strategic growth plans, leveraging cost-effective refurbishment over greenfield expansions to drive efficiency and market competitiveness. Nuvoco expects this move to solidify its presence in the Indian cement market, with enhanced capacities in the East, North, and West regions, positioning it for sustained long-term growth.