Nuvoco opens 2 MMTPA Gujarat unit, enters new market with Vadraj asset
The Limla grinding unit, acquired via CIRP for ₹1,800 cr, adds 8% to capacity and could generate ₹1,000 cr revenue at full utilisation.
What's new
- Nuvoco inaugurated a 2 MMTPA grinding unit at Limla, Surat, its first facility in Gujarat.
- The unit was part of the Vadraj Cement assets acquired for ₹1,800 cr in June 2025.
- Total cement capacity rises to 27 MMTPA, with a path to 35 MMTPA by FY2028.
Why this matters
This expansion opens the high-growth Gujarat and western Maharashtra markets while freeing up Rajasthan capacity for the North. At full utilisation, the unit could add revenue exceeding 8% of FY26 total income. The early completion of the ₹240 cr refurbishment signals smooth integration of the Vadraj acquisition.
What we're watching
- Ramp-up of utilisation at Limla and its impact on EBITDA margins.
- Disbursement of the ₹240 cr refurbishment cost and its effect on debt levels.
- Any further capacity additions in Gujarat or elsewhere on the path to 35 MMTPA.
The full read
Nuvoco Vistas inaugurated a 2 MMTPA grinding unit at its Limla plant in Surat, marking its entry into Gujarat. The unit is part of the Vadraj Cement assets bought for ₹1,800 crore in June 2025 and refurbished at ₹240 crore. Total capacity rises to 27 MMTPA on the path to 35 MMTPA by FY2028. At full utilisation, the plant could add over ₹1,000 crore in revenue — exceeding 8% of FY26 total income. Revenue is not EBITDA. The move opens high-growth Gujarat and western Maharashtra while freeing up Rajasthan capacity for the North, and completion ahead of schedule suggests smooth integration of the Vadraj acquisition. The new unit will produce the full range including Duraguard. For a company with trailing ROE of only 0.2% and a 14.9% drop in PAT, this is a long-term strategic play: capacity is not demand. The next test is how fast utilisation ramps up and whether it can lift margins.
Questions answered
- How much capacity does Nuvoco have now?
- With the new 2 MMTPA unit, total cement capacity is 27 MMTPA, up from 25 MMTPA before the inauguration.
- How was the Limla unit funded?
- The ₹240 crore refurbishment cost was funded through inter-corporate deposits from Nuvoco to its subsidiary Vadraj Cement.
- What is the Vadraj acquisition?
- Nuvoco acquired Vadraj Cement under the corporate insolvency resolution process for ₹1,800 crore in June 2025. The Limla unit is part of those assets.
- What products will the new unit produce?
- The grinding unit will produce the full range of cement products, including OPC, PSC, PPC, and the Duraguard premium brand.
- When was the acquisition of Vadraj completed?
- The acquisition was completed in June 2025, and the Limla unit is the first operational milestone post-acquisition.
- What is the revenue potential of the new unit?
- At full utilisation, the unit can potentially add approximately ₹1,000 crore in revenue, which is over 8% of Nuvoco's FY26 total income of ₹11,362 crore.