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 Urban

Greater Noida Film City to Begin with Rs 1.5 Billion First Phase

Greater Noida is set to host one of India’s most ambitious entertainment infrastructure projects with the upcoming International Film City in Sector 21, along the Yamuna Expressway. The Uttar Pradesh government, led by Chief Minister Yogi Adityanath, is expected to lay the foundation stone in late June, either in person or via video conference. While June 16 has been speculated, the final date is yet to be officially confirmed.The project is being developed by Bayview Bhutani Film City Pvt Ltd—a joint venture between filmmaker Boney Kapoor and the Bhutani Group—in collaboration with the ..

Next Story
Infrastructure Energy

CCL to Add 2 New Mines, Boosting Output by 12 MT

Coal India subsidiary Central Coalfields Ltd (CCL) is set to commission two new coal mines in the 2025–26 financial year, aiming to enhance its annual production capacity by 10 to 12 million tonnes. The initiative is part of the company’s broader plan to exceed 110 million tonnes of coal production this fiscal and reach 150 million tonnes by 2030.“We have planned to open two new mines this year,” said Nilendu Kumar Singh, Chairman and Managing Director of CCL.Production at the Kotre Basantpur block, a coking coal mine with a peak rated capacity of 5 million tonnes per annum, is expecte..

Next Story
Building Material

India Cements Sells ICML Stake for Rs 980 Million

India Cements has announced the sale of its entire equity holding in Industrial Chemicals and Monomers Ltd (ICML) to Mirai Sensing Private Ltd for a consideration of Rs 980 million. The transaction was disclosed through a regulatory filing with the Bombay Stock Exchange.Following the completion of this sale, ICML will cease to be a subsidiary of India Cements, the filing confirmed.ICML, registered in Tirunelveli, Tamil Nadu, had earlier suspended operations. According to the company’s annual report for 2024, the business had become unviable due to reasons previously disclosed. The report fur..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?