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The company has 10 limestone mines, which are pit head mines, and most of the operating mines are located in close proximity to the company’s integrated units
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MOORTHY M
In 2014, Karsanbhai Patel-led Nirma Ltd chose Nimbol in Rajasthan to enter the highly competitive cement business by setting up a greenfield 2.3 mtpa (million tonnes per annum) cement plant. From being a late entrant into India’s cement business landscape, the once fledgling entity has today grown 15-fold and is now looking to operationalise its recent acquisition of Vadraj Cements by third quarter of financial year 2027.
The recent acquisition of Vadraj Cement Ltd gives the cement-arm a crucial entry into Gujarat in the form of limestone reserves, captive jetty and clinker and grinding units. The Indian cement sector has seen a string of consolidations through acquisitions in the last three years with companies like Ultra Tech Cement, Ambuja Cements and Dalmia Bharat engaging in crucial deals.
Armed with brands like “Concerto”, “Duraguard” and “Double Bull”, Nirma’s cement arm Nuvoco Vistas Corporation Ltd (NVCL), headed by Hiren Patel — the patriarch Karsanbhai’s son — has now crossed 31 million tonnes per annum in manufacturing capacity, with 13 plants spread across eight States. “This acquisition of Vadraj Cement marks a 15-fold growth in just over a decade—making us one of the fastest-growing cement companies in India,” a company spokesperson told businessline. The acquired assets of Vadraj Cements, which include a 3.5 mtpa clinker plant in Kutch and 6 mtpa grinding unit in Surat, will become operational only by the third quarter of Financial Year 2027, the spokesperson added.
In 2016, the company made a big splash in India’s cement-business landscape when it acquired the assets of French cement-maker Lafarge for a valuation of ₹9000 crore. Four years later, the company marked another milestone with the acquisition of the cement business of Emami for ₹5500 crore. With National Company Law Tribunal (NCLT) giving a go-ahead for acquisition of Vadraj Cements, the cement capacities of Novoco will be strategically distributed in East-North-West India. This includes manufacturing capacities of 19 MTPA in the East, 6 mtpa in the North, and 6 mmtpa in the West, thus consolidating Nuvoco’s position as the fifth-largest cement group in India, the company said in an emailed response.
While an upfront payment of ₹1,800 crore will be paid for the acquisition of Vadraj, Nuvoco will invest approximately ₹1,000–1,200 crore to revive and operationalise the Vadraj’s cement plant, which has remained non-operational for nearly seven years. Upon completion of the acquisition, Vadraj Cement will mark Nuvoco’s entry into cement manufacturing in Gujarat. “This strategic move not only strengthens the Group’s manufacturing footprint but also provides direct access to a key market in western India, complementing Nuvoco’s existing strong presence in the East,” the company spokesperson said.
The company has 10 limestone mines, which are pit head mines, and most of the operating mines are located in close proximity to the company’s integrated units. As of December 2020, Nuvoco’s limestone mines had aggregate residual reserves of an estimated 1,700 million MT of limestone.
Limestone reserves
The takeover of Vadraj Cements also brings in limestone reserves for the company in Gujarat. When asked about the reserves the company owns and the additions that will happen after the acquisition, the company spokesperson said, “Vadraj Cement owns high-quality limestone reserves that are crucial for ensuring a consistent supply of raw materials for cement production. These limestone reserves are located in Gujarat, complementing the company’s production facilities and ensuring the sustainability of operations. Nuvoco already possesses significant reserves to support its cement production. The company’s annual limestone requirement is met through its existing reserves. The company has secured a long-term supply of limestone from its own and acquired resources to meet its long-term production needs.”
The company has 13 cement plants, eight of which are in eastern India and three in North India. This includes Jojobera (in Jharkhand), Bhabua (in Bihar), Jajpur (in Orissa), Mejia and Panagarh (in West Bengal), Sonadih, Arasmeta and Risda (in chhattisgarh), Nimbol and Chittorgarh (in Rajasthan) and Bhiwani (in Haryana).
Currently, Nuvoco’s Jojobera plant holds the highest cement production capacity of approximately 6.5 mmtpa . The company’s growth trajectory continued during the just ended fiscal year. The company’s consolidated cement sales volume registered a growth of 16 percent year-on-year to 4.7 million metric tonnes in the third quarter of FY 25. The consolidated revenue from operations stood at ₹2,409 crores during the same period.
When asked if jetty in Gujarat acquire through the acquisition of Vadraj Cements will be used for exports, the company spokesperson said, “By acquiring Vadraj Cement, Nuvoco enhances its footprint in this critical region of Western India, optimizing its logistics, strengthening supply chains, and improving access to key markets. This strategic acquisition will help Nuvoco streamline operations and increase competitiveness in a dynamic business environment. While the immediate focus of the acquisition is on strengthening domestic operations, the Kutch captive jetty enhances logistical efficiency.”
Published on April 13, 2025
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