Nuvoco Vistas Corporation plans to set up a two MTPA grinding unit in Kutch, Gujarat, as part of its efforts to refurbish and operationalise recently acquired Vadraj Cement’s assets. This addition raises the initial capital expenditure from Rs 1,200 crore to Rs 1,500 crore for revamping facilities in Kutch and Surat.

Managing Director Jayakumar Krishnaswamy announced the investment during the Q4 earnings call, detailing a phased spending approach: Rs 600 crore in 2025 and 2026 each, and Rs 300 crore in 2027. The new grinding unit, alongside Vadraj’s existing facilities, is expected to be commissioned by December 2027. Vadraj’s assets include a 3.5 MTPA clinker unit in Kutch, a six MTPA grinding unit in Surat, high-grade limestone reserves, and a captive jetty in Kutch. Post-acquisition, Nuvoco’s cement production capacity will reach around 31 MTPA.

To finance the Rs 1,800 crore acquisition cost, Nuvoco will take a long- term debt of Rs 600 crore, while Rs 1,200 crore will be raised through Compulsory Convertible Preference Shares (CCPS) and Compulsory Convertible Debentures (CCDs). A bridge loan of Rs 1,200 crore will temporarily support the financing. Currently, Nuvoco sells one million tonne of cement in Gujarat, sourced from its Rajasthan plants. The operationalisation of Vadraj’s units will strengthen its presence in Gujarat and northern Maharashtra.