Nuvoco’s Resolution Plan For Vadraj Cement Wins Bid

New Delhi: Cement maker Nuvoco Vistas Corp. Ltd on Monday said it has emerged as the successful applicant for Vadraj Cement Ltd, which is currently undergoing 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, Nuvoco Vistas Corp said in a statement. Without sharing the financial details, the company said the transaction will be implemented by Vanya Corporation Pvt Ltd, a wholly-owned subsidiary, and it intends to fund the transaction without a significant rise in its consolidated debt levels.

“A phased investment will be spread over 15 months towards the refurbishment of assets and to drive operational improvements across the Vadraj Cement Ltd (VCL) plants,” it said, adding the estimated target date to commence production is around Q3 FY27, subject to National Company Law Tribunal (NCLT) approvals 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. “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,” the statement said. 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, consolidating its position as the fifth-largest cement group in India for long-term, it added. Nuvoco Vistas Corp Managing Director Jayakumar Krishnaswamy said the deal consolidates “our position as the fifth-largest player”.