NCLT Approves Nuvoco's Rs 1,800 Crore Bid for Vadraj Cement

The Mumbai bench of the National Company Law Tribunal (NCLT) has approved Nuvoco Vistas Corporation’s Rs 1,800 crore bid to acquire the financially distressed Vadraj Cement, significantly enhancing Nuvoco's production capacity and industry presence. Nuvoco, part of the Nirma Group, has stated that the acquisition will boost its cement production capacity by over 20%, bringing the total to approximately 31 million tons per annum (MTPA).

“The Resolution Plan includes an upfront payment of Rs 1,800 crore. Nuvoco plans to fund the deal without significantly increasing its consolidated debt levels,” the company confirmed. The acquisition will be carried out through Vanya Corporation, a wholly-owned subsidiary of Nuvoco.

Under the Resolution Plan, Vanya Corporation will merge with Vadraj Cement, making Vadraj a wholly-owned subsidiary of Nuvoco Vistas. To revive Vadraj Cement’s operations, which have been dormant for nearly seven years, Nuvoco intends to invest an additional Rs 1,200 crore. This phased investment, planned over 15 to 18 months after the formal handover by the Committee of Creditors, aims to restart production by Q3 of FY27.

Vadraj Cement operates a 3.5 MTPA clinker unit in Kutch and a six MTPA grinding unit in Surat, both in Gujarat. These assets will play a crucial role in expanding Nuvoco’s presence in the western region and enhancing its operational capabilities.

News by Rahul Yelligetti.