Nuvoco Vistas inaugurates 2 MMTPA grinding unit at Surat, targets 35 MMTPA by FY 2028
Nuvoco Vistas Corporation inaugurated 2 MMTPA of cement grinding capacity at its Limla Cement Plant in Surat, Gujarat, on July 11, 2026. This expansion, part of the Vadraj Cement Limited acquisition, involved an investment of ₹240 crore and aims to increase total cement capacity to 35 MMTPA by FY 2028.
*this image is generated using AI for illustrative purposes only.
Nuvoco Vistas Corporation inaugurated 2 MMTPA of cement grinding capacity at its Limla Cement Plant in Surat, Gujarat, on July 11, 2026. The facility, operated by Vadraj Cement Limited (VCL), a wholly owned subsidiary, marks the company's entry into the high-growth Gujarat market and strengthens its footprint in Western India. The expansion is part of a strategic revival of VCL assets acquired in June 2025.
Acquisition and Asset Base
The inauguration follows the acquisition of VCL, which was undergoing the Corporate Insolvency Resolution Process (CIRP), for a consideration of ₹1,800 crore. The asset base includes a clinker unit at Kutch and the grinding unit at Limla, along with captive limestone reserves and a jetty. The Limla Grinding Unit achieved project completion ahead of schedule, adding 2 MMTPA to the company's operational scale.
Investment and Financing
The company invested approximately ₹240 crore towards the refurbishment of the Limla plant, excluding the acquisition price of the VCL assets. The parent company financed the refurbishment through inter-corporate deposits. The key capacity and investment details are summarised below:
| Particulars: | Details |
|---|---|
| Existing Capacity: | 25 MMTPA as on June 30, 2026 |
| Consolidated Capacity Target: | 35 MMTPA by FY 2027-28 |
| Capacity Utilisation: | ~81% as on March 31, 2026 |
| Proposed Addition: | 2 MMTPA grinding capacity at Limla, Surat |
| Investment Required: | ~₹240 crore (refurbishment only) |
| Mode of Financing: | Inter-Corporate Deposits from parent company |
Strategic Significance and Product Portfolio
Jayakumar Krishnaswamy, Managing Director of Nuvoco Vistas Corp. Ltd., stated that the inauguration reinforces the company's commitment to disciplined expansion. He highlighted Gujarat's strategic importance due to infrastructure development and industrial expansion. The facility will manufacture a complete portfolio of cement products, including Ordinary Portland Cement (OPC), Portland Slag Cement (PSC), and the Nuvoco Duraguard range.
Market Reach and Financial Overview
The Limla plant will serve markets in Gujarat and Western Maharashtra, releasing capacity from existing Rajasthan plants to serve North India customers. The company reported a total income of ₹11,362 crore in FY 2025-26. With this expansion, Nuvoco aims to consolidate its position as a leading building materials player with a total cement capacity of 35 MMTPA by FY 2028.
Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE118D01016/0553f545adce4da3.pdf
Historical Stock Returns for Nuvoco Vistas Corporation
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +4.70% | +14.41% | +15.39% | +4.35% | -9.38% | -31.89% |
How will the operationalization of the Kutch clinker unit impact the overall production costs and margins for the new Limla grinding facility?
What specific capital allocation strategies will Nuvoco employ to bridge the gap between the current 27 MMTPA capacity and the 35 MMTPA target by FY 2028?
How does the company plan to leverage the captive jetty at the Kutch asset to optimize logistics and expand export opportunities?
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