Nuvoco Vistas Acquires Vadraj Cement for ₹1,800 Cr, Expands Capacity by 20%

Nuvoco Vistas Corp, the cement arm of the Nirma Group, has completed the ₹1,800 crore acquisition of Vadraj Cement, a debt-laden Gujarat-based company formerly owned by ABG Shipyard. The payment to lenders, including Punjab National Bank (PNB) and Union Bank of India, was made on Saturday ahead of the June 24 deadline allowing them to reverse prior provisions this quarter.

The transaction significantly boosts Nuvoco Vistas’ total cement production capacity by over 20%, from 25 million tonnes per annum (MTPA) to approximately 31 MTPA. This marks Nuvoco’s third major acquisition in recent years, following the takeovers of Lafarge Cement and Emami Cement.

PNB, which holds 25% of Vadraj’s ₹8,000 crore debt, is expected to recover ₹431 crore, while Union Bank stands to gain ₹345 crore, according to calculations by Economic Times.

Approved by the Mumbai bench of the National Company Law Tribunal (NCLT) in April, the acquisition was routed through Vanya Corp, a wholly owned subsidiary of Nuvoco Vistas. Under the approved resolution plan, Vanya Corp will merge with Vadraj Cement, which will eventually become a wholly owned subsidiary of Nuvoco.

Vadraj Cement’s assets include a 6 MTPA grinding unit in Surat, further strengthening Nuvoco’s footprint in the West Indian market.

Nuvoco’s ₹1,800 crore offer had outbid competing proposals, including one from Ambuja Cement, backed by the Adani Group, in collaboration with RKG Fund and Prudent ARC. Of the total consideration, ₹1,725 crore is allocated to settle the dues of financial creditors, with the remaining amount set aside for operational creditors, employee dues, and insolvency resolution costs.

This strategic acquisition positions Nuvoco Vistas as one of the country’s leading cement producers, accelerating its expansion through insolvency-driven consolidation in the industry.