Nuvoco to Build 2 MTPA Grinding Unit in Kutch, Rs 3 Bn for Vadraj Cement
Cement

Nuvoco to Build 2 MTPA Grinding Unit in Kutch, Rs 3 Bn for Vadraj Cement

Nuvoco Vistas Corporation, the cement arm of Gujarat-based Nirma, is planning to establish a new grinding unit with a capacity of two million tonnes per annum (MTPA) in Kutch as part of its efforts to refurbish and operationalize the assets of the recently acquired Vadraj Cements. This development is expected to add approximately Rs 3 billion to the company’s original plan of investing Rs 12 billion in restarting the Vadraj cement assets in Kutch and Surat districts of Gujarat.

Jayakumar Krishnaswamy, the managing director of Nuvoco, mentioned during an earnings call for the fourth-quarter results that the company had identified fiscal opportunities in Gujarat, specifically in Kutch, leading them to decide to set up a grinding unit in the region. As a result, the overall capital expenditure (capex) for rebuilding the Kutch and Surat facilities and installing the grinding unit in Kutch will now increase from Rs 12 to Rs 15 billion.

The company aims to commission the new grinding unit along with the existing Vadraj cement assets in Kutch and Surat by December 2027.

Krishnaswamy further explained that Nuvoco would invest Rs 15 billion in three phases, with Rs 6 billion planned for both 2025 and 2026, and Rs 3 billion allocated for 2027. To finance this capex from internal accruals, the company intends to limit its capital expenditure for ongoing operations to a maximum of Rs 1-1.5 billion, ensuring sufficient cash flow to support the Vadraj capex.

The assets acquired from Vadraj include a 3.5 MTPA clinker unit in Kutch, a 6 MTPA grinding unit in Surat, high-quality limestone reserves, and a captive jetty in Kutch. With this acquisition, Nuvoco’s total cement production capacity is expected to reach around 31 MTPA. In addition to the Rs 15 billion planned for operationalizing Vadraj’s assets, the company will also need to make an additional Rs 18 billion upfront payment for the acquisition.

News source: The Hindu Businessline

Nuvoco Vistas Corporation, the cement arm of Gujarat-based Nirma, is planning to establish a new grinding unit with a capacity of two million tonnes per annum (MTPA) in Kutch as part of its efforts to refurbish and operationalize the assets of the recently acquired Vadraj Cements. This development is expected to add approximately Rs 3 billion to the company’s original plan of investing Rs 12 billion in restarting the Vadraj cement assets in Kutch and Surat districts of Gujarat. Jayakumar Krishnaswamy, the managing director of Nuvoco, mentioned during an earnings call for the fourth-quarter results that the company had identified fiscal opportunities in Gujarat, specifically in Kutch, leading them to decide to set up a grinding unit in the region. As a result, the overall capital expenditure (capex) for rebuilding the Kutch and Surat facilities and installing the grinding unit in Kutch will now increase from Rs 12 to Rs 15 billion. The company aims to commission the new grinding unit along with the existing Vadraj cement assets in Kutch and Surat by December 2027. Krishnaswamy further explained that Nuvoco would invest Rs 15 billion in three phases, with Rs 6 billion planned for both 2025 and 2026, and Rs 3 billion allocated for 2027. To finance this capex from internal accruals, the company intends to limit its capital expenditure for ongoing operations to a maximum of Rs 1-1.5 billion, ensuring sufficient cash flow to support the Vadraj capex. The assets acquired from Vadraj include a 3.5 MTPA clinker unit in Kutch, a 6 MTPA grinding unit in Surat, high-quality limestone reserves, and a captive jetty in Kutch. With this acquisition, Nuvoco’s total cement production capacity is expected to reach around 31 MTPA. In addition to the Rs 15 billion planned for operationalizing Vadraj’s assets, the company will also need to make an additional Rs 18 billion upfront payment for the acquisition. News source: The Hindu Businessline

Next Story
Infrastructure Transport

NF Railway Launches Girder on World’s Tallest Pier Bridge in Manipur

The Northeast Frontier Railway (NFR) has reached a significant engineering milestone by successfully completing the girder launch on the iconic Noney Bridge in Manipur.Regarded as an engineering marvel, the Noney Bridge is recognized as the world’s tallest railway pier bridge. It forms a crucial part of the 111 km long Jiribam-Imphal railway line project.Recently, the final span of the bridge was successfully erected, marking the completion of all eight spans of this monumental infrastructure venture.Kapinjal Kishore Sharma, Chief Public Relations Officer of NFR, stated that this accomplishm..

Next Story
Infrastructure Urban

Cube Highways Trust Reports Rs 34.53 Bn Total Income in FY25

Cube Highways Trust (Cube InvIT), managed by Cube Highways Fund Advisors, concluded its second financial year post-listing on a strong note by reporting a total consolidated income of Rs 34.53 billion for the financial year 2025, marking a 12.3 percent year-on-year (YoY) increase.According to the official media release, Cube InvIT posted a consolidated earnings before interest, tax, depreciation, and amortisation (EBITDA) of Rs 2,380 crore, reflecting a 21.7 percent YoY growth. During the year, traffic volumes increased by 6.2 percent, while the Asset Under Management (AUM) grew 25 percent to ..

Next Story
Infrastructure Transport

New Flyover to Ease Traffic on Hyderabad’s Busiest Road

To improve urban connectivity and reduce traffic congestion in the city, the Greater Hyderabad Municipal Corporation (GHMC) will undertake the construction of a two-lane unidirectional flyover at NFCL Junction in Banjara Hills, along with a two-lane unidirectional underpass and a three-lane unidirectional flyover at TV9 Junction, as part of the state government’s prestigious Hyderabad City Innovative and Transformative Infrastructure (H-CITI) programme.The NFCL Junction flyover will be a two-lane unidirectional structure extending from Banjara Hills Road No. 3 towards GVK Mall. It is planned..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?