Nuvoco Vistas Solidifies Position as Fifth-Largest Cement Maker with Vadraj Cement Acquisition

Nirma Group's Nuvoco Vistas has acquired Vadraj Cement for Rs 1,800 crore. This acquisition boosts Nuvoco's cement capacity by over 20%, totaling 31 MTPA, consolidating its rank as the fifth-largest cement maker in India. The transaction will not notably raise the company's consolidated debt levels.

The Mumbai bench of the insolvency tribunal NCLT has given the green light to Nirma Group firm Nuvoco Vistas to acquire the debt-ridden Vadraj Cement, sealing the deal with an upfront payment of Rs 1,800 crore.

This strategic acquisition will elevate Nuvoco Vistas' cement production capacity by more than 20%, bringing it to approximately 31 MTPA, as outlined in the company's official statement.

The acquisition aims for financial efficiency, ensuring no significant rise in consolidated debt levels. The execution will see the acquisition handled through Vanya Corporation, a fully-owned subsidiary of Nuvoco Vistas, followed by the merger of Vanya with Vadraj Cement, ultimately making the latter a wholly-owned subsidiary.

(With inputs from agencies.)