Nuvoco Vistas becomes fifth largest cement player after NCLT nod to acquire Vadraj Cement for Rs 1,800 crore

The acquisition will be executed through Vanya Corporation, a wholly-owned subsidiary of Nuvoco, which will subsequently merge with VCL.

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26 Aug, 2025 12:21

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One of the leading cement makers, Nuvoco Vistas Corporation has received approval from the National Company Law Tribunal's (NCLT) Mumbai Bench for its resolution plan to acquire Vadraj Cement under the Insolvency and Bankruptcy Code for Rs 1,800 crore, a company filing on April 3 said, making it India's fifth largest cement group.

The acquisition will be executed through Vanya Corporation, a wholly-owned subsidiary of Nuvoco, which will subsequently merge with VCL. Post the merger, VCL will become the wholly owned subsidiary of the company. Nuvoco Vistas is a Nirma Group company into the business of cement and other building materials.

The company had in January 2025 received a letter of intent to acquire Gujarat-based Vadraj Cement (VCL) under insolvency process. Nuvoco has said in the past the plan to invest Rs 1800 crore for the acquisition, with addition investments planned subsequently.

The approval order, dated April 01, 2025, was made available on the NCLT website on April 03, 2025.

After the acquisition, Nuvoco's cement capacity will rise to 31 MTPA and clinker capacity to 17 MTPA by Q3FY27, making it the fifth largest cement group with a combined capacity of ~31 MMTPA. With this acquisition, Nuvoco Vistas will expand its footprint in the Western India to become the third largest player by capacity across Gujarat and Maharashtra.

Nuvoco has in the past called the acquisition a 'valuable buy' with sizable growth opportunity at a highly competitive cost of approximately $60 per tonne, which is lower than the recent high acquisition cost seen in the industry. "By acquiring Vadraj Cement, the Company is poised to reach 31 million tonnes per annum cement capacity by Q3FY27," Nuvoco had said in January 2025.

Nuvoco plans to invest another Rs 900-1,200 crore on Vadraj over next 18 to 24 months. Initially incorporated as Lafarge India in 1999, the company was rebranded as Nuvoco Vistas following acquisition by the Nirma Group in 2016.