Nuvoco Vistas Corp. has emerged as the Successful Resolution Applicant (SRA) of Vadraj Cement (VCL), currently undergoing the 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. 

The transaction will be implemented by Vanya Corporation, a wholly-owned subsidiary of Nuvoco Vistas Corp, and will enable Nuvoco’s installed cement capacity to increase by over 20 percent. Nuvoco intends to fund the transaction with a phased investment in Vadraj Cement to be spread over 15 months towards the refurbishment of assets and to drive operational improvements across the VCL plants. The estimated target date to commence production is around Q3/FY27, subject to the National Company Law Tribunal (NCLT) approvals for the Resolution Plan.

The company anticipates significant benefits, as the existing facilities include a 3.5 MTPA clinker unit in Kutch, Gujarat, and six MTPA grinding unit in Surat, Gujarat. Additionally, VCL owns high-quality limestone reserves, ensuring a sustainable supply of raw materials for future production. The captive jetty in Kutch further enhances logistical efficiency.

With this transaction, Nuvoco’s total cement production capacity is set to increase to approx. 31 MTPA, distributed as 19 MTPA in the East, six MTPA in the North, and 6 MTPA in the West, consolidating its position. The transaction, once consummated, is anticipated to foster substantial synergies with Nuvoco's existing manufacturing facilities in Nimbol and Chittorgarh, Rajasthan, enabling enhanced operational efficiency.