Nuvoco Vistas to acquire Vadraj Cement through insolvency route
Nuvoco Vistas Corp, a key producer of cement in East India, has emerged as the successful applicant to buy Vadraj Cement under the Corporate Insolvency Resolution Process. Gujarat-based Vadraj Cement, formerly owned by ABG Shipyard, has a 6 million tonne grinding unit in Surat and will add to Nuvoco Vistas’ existing production capacity of 25 million tonne by more than 20%.
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Vadraj Cement also has a clinker capacity of 3.5 million tonne in Kutch in Gujarat along with limestone reserves and a captive jetty.
“With this transaction, Nuvoco’s total cement production capacity is set to increase to approx 31 MMTPA, distributed as 19 MMTPA in the East, 6 MMTPA in the North, and 6 MMTPA in the West, consolidating its position as the fifth-largest cement group in India for long-term,” Nuvoco said in a statement.
Nuvoco will acquire Vadraj Cement through its wholly-owned subsidiary Vanya Corporation, which was incorporated in November last year.
Its plans to fund the acquisition without a significant rise in its consolidated debt levels, the company said without giving an indication of the value of the deal. It had a net debt of 4,501 crore rupees as on September-end and had made a loss of over 82 crore rupees for the April-September period. In October, Nuvoco said that it plans on paring its debt to Rs 3,500 – Rs 4,000 crore by March
