Adani, JSW Cement, ArcelorMittal vie for acquisition of Vadraj Cement
Cement

Adani, JSW Cement, ArcelorMittal vie for acquisition of Vadraj Cement

An entity within the Adani Group, JSW Cement owned by Sajjan Jindal, and the ArcelorMittal Group are reportedly leading candidates for the acquisition of Vadraj Cement, a company belonging to the ABG Shipyard group. Sources familiar with the matter informed that the sale is set to take place under the Insolvency and Bankruptcy Code process.

The Bombay High Court, in August 2018, had ordered the winding up of Vadraj Cement in response to a legal action initiated by trade creditor Beumer Technology India seeking recovery of dues. Frustrated with the slow pace of asset sales, the court agreed to transfer the debt resolution process of Vadraj Cement to the Insolvency and Bankruptcy Code (IBC), as mentioned by one of the individuals cited.

On September 4, the high court issued an order allowing the transfer of winding-up proceedings to the National Company Law Tribunal (NCLT) based on a petition from a bank. Lenders have recommended Pulkit Gupta, backed by EY, as an interim resolution professional for the bankruptcy process of Vadraj.

Potential buyers are anticipated to submit bids ranging between Rs 20 billion and Rs 25 billion, according to the sources. Vadraj Cement carries a debt of Rs 70 billion, with lenders including Punjab National Bank, Union Bank of India, Central Bank of India, Indian Overseas Bank, Bank of India, Bank of Baroda, UCO Bank, and Yes Bank.

The company possesses an integrated cement manufacturing facility with a 10,000 TPD clinker unit in Kutch and a 6-million-tonne cement grinding unit in Surat, Gujarat. However, both cement units are non-operational due to the sale of captive power plants following a loan default. Vadraj Energy (Gujarat) was acquired in October 2021 under the IBC route by Alpha Alternatives Holding in collaboration with Algebra Endeavour, as approved by a tribunal order.

Should ArcelorMittal emerge as the successful bidder, it would mark the company's entry into the cement sector. Although it had announced plans to establish an 18.75 mt cement plant in Odisha in December 2021, the Vadraj Cement unit in Gujarat is strategically located near Arcelor's steel plant acquired from Essar Steel. The cement plant is expected to complement the steel business, utilising steel slag with properties suitable for cement production.

Adani and JSW Cement have expressed intentions to increase their manufacturing capacities over the next five years, with Adani proposing an increase to 140 mt and JSW Cement aiming for a 60 mt output. Currently, the Aditya Birla Group, owner of Ultratech Cement, holds the position of India's largest cement maker with a manufacturing capacity of 137.5 mtpa, followed by ACC and Ambuja Cements, both owned by the Adani Group, with a combined capacity of 67.5 mt.

An entity within the Adani Group, JSW Cement owned by Sajjan Jindal, and the ArcelorMittal Group are reportedly leading candidates for the acquisition of Vadraj Cement, a company belonging to the ABG Shipyard group. Sources familiar with the matter informed that the sale is set to take place under the Insolvency and Bankruptcy Code process. The Bombay High Court, in August 2018, had ordered the winding up of Vadraj Cement in response to a legal action initiated by trade creditor Beumer Technology India seeking recovery of dues. Frustrated with the slow pace of asset sales, the court agreed to transfer the debt resolution process of Vadraj Cement to the Insolvency and Bankruptcy Code (IBC), as mentioned by one of the individuals cited. On September 4, the high court issued an order allowing the transfer of winding-up proceedings to the National Company Law Tribunal (NCLT) based on a petition from a bank. Lenders have recommended Pulkit Gupta, backed by EY, as an interim resolution professional for the bankruptcy process of Vadraj. Potential buyers are anticipated to submit bids ranging between Rs 20 billion and Rs 25 billion, according to the sources. Vadraj Cement carries a debt of Rs 70 billion, with lenders including Punjab National Bank, Union Bank of India, Central Bank of India, Indian Overseas Bank, Bank of India, Bank of Baroda, UCO Bank, and Yes Bank. The company possesses an integrated cement manufacturing facility with a 10,000 TPD clinker unit in Kutch and a 6-million-tonne cement grinding unit in Surat, Gujarat. However, both cement units are non-operational due to the sale of captive power plants following a loan default. Vadraj Energy (Gujarat) was acquired in October 2021 under the IBC route by Alpha Alternatives Holding in collaboration with Algebra Endeavour, as approved by a tribunal order. Should ArcelorMittal emerge as the successful bidder, it would mark the company's entry into the cement sector. Although it had announced plans to establish an 18.75 mt cement plant in Odisha in December 2021, the Vadraj Cement unit in Gujarat is strategically located near Arcelor's steel plant acquired from Essar Steel. The cement plant is expected to complement the steel business, utilising steel slag with properties suitable for cement production. Adani and JSW Cement have expressed intentions to increase their manufacturing capacities over the next five years, with Adani proposing an increase to 140 mt and JSW Cement aiming for a 60 mt output. Currently, the Aditya Birla Group, owner of Ultratech Cement, holds the position of India's largest cement maker with a manufacturing capacity of 137.5 mtpa, followed by ACC and Ambuja Cements, both owned by the Adani Group, with a combined capacity of 67.5 mt.

Next Story
Infrastructure Transport

MoRTH to Frame IRC Norms for New-Age Machines in Highway Work

The Ministry of Road Transport and Highways (MoRTH) has decided to formally adopt Automated and Intelligent Machine-aided Construction (AIMC) for highway projects, aiming to accelerate execution and ensure timely completion. In line with this, MoRTH announced that the Indian Roads Congress (IRC) will develop new guidelines based on feedback from contractors and concessionaires actively involved in these projects.So far, MoRTH has sanctioned at least 16 highway projects where innovative construction equipment will be deployed. Additionally, the ministry is awaiting Cabinet approval for 10 more ..

Next Story
Infrastructure Energy

SECI Extends Green Ammonia Bid Deadline to 30 June

The Solar Energy Corporation of India (SECI) has extended the bid deadline for its green ammonia tender to 30 June 2025. The tender was issued under the SIGHT Scheme - Mode 2A, Tranche I, to supply 7.24 lakh tonnes annually to 13 fertiliser plants.As the implementing agency under the National Green Hydrogen Mission, SECI will enter long-term offtake agreements with selected producers, providing 10-year commercial certainty to encourage market development for green hydrogen derivatives. ..

Next Story
Infrastructure Urban

India Launches First Maritime Sector NBFC

Union Minister Sarbananda Sonowal recently inaugurated Sagarmala Finance Corporation Limited (SMFCL), India’s first NBFC dedicated to the maritime sector. Formally registered with the RBI on 19 June 2025, SMFCL evolved from Sagarmala Development Company Limited.It will address financing gaps for ports, MSMEs, startups, and maritime institutions, supporting shipbuilding, renewable energy, cruise tourism, and education. The move aligns with India’s Maritime Amrit Kaal Vision 2047 and aims to catalyse innovation and sustainable logistics growth.Union Minister of State Shantanu Thakur emphasis..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?