### **Executive Summary** Nuvoco Vistas Corporation Ltd. is India’s fifth-largest cement producer by installed capacity and a leading building materials company with a strong regional presence in Eastern, Northern, and Western India. The company operates across three core business segments: **Cement**, **Ready-Mix Concrete (RMX)**, and **Modern Building Materials (MBM)**. Backed by a robust acquisition-led growth strategy, strategic capacity expansion, and consistent focus on **premiumization, innovation, and sustainability**, Nuvoco is positioned for long-term market leadership. As of November 2025, the company is on track to achieve a consolidated cement capacity of **~35 million metric tonnes per annum (MMTPA)** by FY27, driven by the ongoing integration of **Vadraj Cement Limited** and targeted brownfield and greenfield expansions. --- ## **Business Overview** ### **Cement Business – Core Driver** - **Installed Capacity (Nov 2025):** ~31 MMTPA, with plans to reach **35 MMTPA by FY27**. - **Clinker Capacity:** To expand from 13.5 MMTPA to **17 MMTPA**, primarily through the Vadraj acquisition and debottlenecking. - **Key Brands:** - *Concreto* (premium slag cement, East India leader) - *Duraguard* (flagship brand with microfiber-technology) - *Double Bull* (premium and custom solutions) - *Infracem* (for infrastructure projects) - *PSC, Nirmax, and PPC/PCC variants* - The cement segment contributes approximately **90% of total revenue**. - **Premium Product Mix:** ~40% of cement trade volume (up from 36% in FY23), with targeted growth in high-margin products like *Concreto Uno* and *Duraguard Microfiber*. ### **Ready-Mix Concrete (RMX)** - **Operational Plants:** 58 pan-India. - **Key Products:** - *Concreto* (performance concrete) - *Concreto Uno* (hydrophobic concrete with damp-lock formula) - *Ecodure* (green, energy-efficient concrete) - *InstaMix* (ready-to-use bagged concrete) - *Artiste* (decorative and industrial flooring solutions) - *X-Con* (structural concrete, M20–M60 grades) - **Expansion Plans:** Aims to grow to **100 plants by FY27–28**. - **Recent Projects:** - Mumbai-Ahmedabad Bullet Train - Birsa Munda Hockey Stadium - Delhi, Mumbai, Jaipur, and Noida Metro systems - **Technology & Innovation:** Vehicle Tracking Systems (VTS) with drum rotation sensors and digital delivery alerts for improved efficiency and transparency. ### **Modern Building Materials (MBM)** - **Branding:** Sold under the **'Zero M'** umbrella. - **Product Range:** - Construction chemicals - Tile adhesives (T5, Tile Glitter, Tile Bonder) - Waterproofing agents (Roof Shield) - Wall putty - Cover blocks - Dry mix plasters - **Growth:** Strong YoY sales growth in tile adhesives, chemicals, and cover blocks. MBM is a key non-cement growth driver. - **Distribution:** Leveraging the existing **cement distribution network** for synergistic growth. - **Differentiators:** Complete tiling solutions, sustainability, and performance-oriented product lines. --- ## **Strategic Growth Initiatives** ### **1. Major Acquisition: Vadraj Cement Limited (Q3 FY27 Target)** - **Capacity Added:** 6 MMTPA grinding unit (Surat) + 3.5 MMTPA clinker unit (Kutch), Gujarat. - **Total CAPEX:** ~Rs 1,800 crores initial, with **Rs 900–1,200 crores** more for operationalization. - **Strategic Benefits:** - Becomes **3rd largest cement player in Gujarat** and Maharashtra. - Access to high-grade **limestone**, **captive jetty**, and coastal logistics. - Enables capacity reallocation from Chittor/Nimbol to **North Indian markets**. - Frees up supply for northern expansion and improves profitability. - **Integration Status:** On track. Critical equipment procured, site overhauling ongoing. **Trial runs scheduled for H1 FY27**, commercial operations by **Q3 FY27**. - **Financial Impact:** Deleveraged balance sheet (net debt reduced to Rs 3,474 crore in Q1 FY26) supports future growth capex. ### **2. Capacity Expansion – East India** - **Target:** Add **4 MMTPA** of grinding capacity in the East by March 2027. - **Phased Commissioning:** - 1 MTPA: December 2025 - 2 MTPA: March 2026 - 1 MTPA: June 2026 & FY27 - **Investment:** **< Rs 200 crores** for process upgrades and equipment. - **Locations:** Jojobera, Panagarh, Jajpur, and **Arasmeta (New 1 MTPA ball mill)**. - **Drivers:** - Meet demand for **blended and composite cement** (PPC, PCC) - **Boost CK ratio** from 2.1 to 2.3 - Access new markets: Eastern UP, Eastern MP, North East, border regions - Leverage state incentives in **Chhattisgarh** - **Utilization:** Existing plants (Jojobera, Risda, Sonadih) operate at **85–90%** during peak seasons. ### **3. Western Expansion – Gujarat Focus** - **New Grinds in Gujarat:** - Surat: 2 MTPA mill (Phase I commissioned, to expand to 3 MTPA in 1 year) - Kutch: 2.5 MTPA new grinding unit with **6.3m Vertical Roller Mill (VRM)** for flexibility. - **Logistics Advantage:** - Extended railway siding to **Vayor near Naliya** in Kutch. - Bulk transport of OPC from Kutch to Gujarat markets, reducing freight. - **Sales Target:** - Current Gujarat sales: ~1 million TPA (from Nimbol/Chittor) - Target: **1.5–1.8 million TPA by FY27** - **Market Dynamics:** Shift expected from OPC to **PPC** demand, driven by infrastructure (e.g., **Commonwealth Games, Ahmedabad, 2030**). - **Future Plans:** Consider brownfield at Chittor or greenfield in **Gulbarga** for long-term Western market access. --- ## **Innovation & R&D** - **Construction Development and Innovation Centre (CDIC), Mumbai:** - **NABL-accredited**, serves as incubation hub for new products. - Conducts >55 types of mechanical tests on materials. - Key innovations: - *Concreto Uno* – India’s first **hydrophobic concrete**. - *Ecodure Thermal Insulated Concrete* – reduces indoor temp by up to 3°C. - *DuraGuard Microfiber* – patented **fibre-reinforced cement** (resists micro-cracking). - **Launches (Recent):** - Tile Adhesive T5 (PU-based, all-surface bonding) - Zero M Roof Shield (reflective waterproofing) - InstaMix Superior Column Concrete (4-hour workability, early deshuttering) --- ## **Sustainability & Operational Excellence** ### **Green Initiatives** - **Solar Power:** 5.5 MWp solar capacity + 50 MW Green Power facility. - **Waste Heat Recovery (WHR):** Installed in all 5 integrated plants (~49 MW total). - **Captive Power Plant (CPP):** 150 MW. - **Carbon Emissions:** **453.8 kg/tonne of cementitious material** (Scope 1) — among the lowest in the industry. - **EcodureGreen Concrete:** Available in 6 RMX plants, reduces emissions by **60% vs. OPC**. ### **Resource Security & Logistics** - **Mining Assets:** Owns limestone blocks in **Nagaur, Gulbarga, Guntur, and Gujarat**, ensuring 30+ years of raw material security. - **Rail Infrastructure Upgrades:** - Completed railway siding at **Odisha plant** - New clinker wagon loading at **Sonadih**, reduces rake time by 50% - Enhanced multi-modal connectivity in Eastern markets. ### **Energy Efficiency** - AFR (Alternate Fuel & Raw) usage: **~14%**, targeting over **20%** post Nimbol/Risda scale-up. - SHC (Specific Heat Consumption): Best-in-class (avg. ~705 kcal/kg clinker). - **132 KV Grid Integration:** In Chhattisgarh, connects Arasmeta, Risda, Sonadih plants — reduces fixed costs and improves reliability. --- ## **Financials (Key Highlights as of Oct-Nov 2025)** - **Deleverage:** Net debt reduced to **Rs 3,474 crore** (Q1 FY26), lowest in 14 quarters. - **EBITDA:** Highest-ever **Q1 consolidated EBITDA of Rs 533 crore**. - **Cement Dispatch Volume:** 5.1 MMT in Q1 FY26 (**+6% YoY**). - **Total Sales:** FY25: **19.4 MMT** of cement sold. - **CAPEX Discipline:** Focused on cost-effective, high-ROI projects (e.g., using existing civil infrastructure). - **ROCE Target for RMX:** Target **15% by FY25**, with current margins among industry leaders.