The Mumbai Bench of the National Company Law Tribunal (NCLT) has issued an order approving the Resolution Plan submitted by Nuvoco Vistas Corp. Limited for the acquisition of Vadraj Cement Limited (VCL) in the corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016 (IBC). The Resolution Plan includes an upfront payment of Rs 1,800 crores. Nuvoco intends to fund the transaction without significantly rising consolidated debt levels.
The acquisition will be undertaken through Vanya Corporation Private Limited (Vanya), a wholly owned subsidiary of Nuvoco Vistas Corp. Ltd. Subsequently, Vanya will be merged with VCL as outlined in the Resolution Plan. After the merger, VCL will become the company's wholly owned subsidiary.
Nuvoco will invest approximately Rs 1,000—Rs 1,200 crores to operationalise the assets, which have remained suspended for almost seven years. The phased investment will be spread over 15-18 months from the date of actual handover by the Committee of Creditors to get the facility running and drive operational improvements across the VCL plants. The estimated target date to commence production is around Q3 FY27.
VCL’s facilities include a 3.5 MMTPA (~10,000 TPD) clinker unit in Kutch, Gujarat, and a 6 MMTPA grinding unit in Surat, Gujarat. Additionally, VCL owns high-quality limestone reserves, ensuring a consistent and sustainable supply of raw materials for future production. The captive jetty in Kutch further enhances logistical efficiency. With this acquisition, Nuvoco’s total cement production capacity is set to increase to approx. 31 MMTPA, consolidating its position as the fifth-largest cement group in India for the long term.
Jayakumar Krishnaswamy, Managing Director, Nuvoco Vistas Corp. Ltd., stated, “This deal consolidates our position as the fifth-largest player in the Indian Cement Industry. This will drive logistics optimisation, streamline operations, and improve competitiveness, providing the Company with better market access and a strengthened supply chain across key regions and enabling us to deliver greater value and superior service to our customers in a competitive and dynamic business landscape.”
