Nuvoco Vistas to acquire Vadraj Cement through insolvency route

Mumbai-headquartered Nuvoco Vistas Corp, a producer of cement in East India, has emerged as the successful applicant to buy Gujarat-based Vadraj Cement under the Corporate Insolvency Resolution Process (CIRP). The acquisition will be made through Nuvoco’s wholly-owned subsidiary Vanya Corporation.Vadraj Cement, formerly owned by ABG Shipyard, will add a 6 million metric tonnes per annum (MMTPA) grinding unit in Surat to Nuvoco’s existing production capacity of 25 MMTPA. Vadraj Cement also has a clinker capacity of 3.5 MMTPA in Kutch in Gujarat along with limestone reserves and a captive jetty.Post transaction, Nuvoco’s cement production capacity will be distributed as 19 MMTPA in the East, 6 MMTPA in the North, and 6 MMTPA in the West.Vadraj Cement had secured creditors' debt of about INR 8,000 crore. AM Mining India, a joint venture between ArcelorMittal and Nippon Steel, Oaktree Capital-backed India Opportunities XII Investments were among the bidders who had submitted expressions of interest (EoIs).