Nuvoco Vistas Plans ₹200 Crore Investment to Expand Eastern India Cement Capacity

Nuvoco Vistas plans a ₹200 crore investment to expand cement grinding capacity in Eastern India, adding 4 MMTPA across Arasmeta, Jojobera, Panagarh, and Odisha plants.

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Summary

  • Nuvoco Vistas, backed by the Nirma Group, will invest ₹200 crore to boost cement grinding capacity in Eastern India by 4 MMTPA by FY27, with phased expansions at Arasmeta, Jojobera, Panagarh, and Odisha plants.
  • The expansion aims to improve operational efficiency, reduce costs, and enhance market access in high-growth regions like eastern Madhya Pradesh, eastern Uttar Pradesh, West Bengal, and Odisha, while focusing on sustainability and process optimization.
  • Driven by rising cement demand and recent acquisitions, Nuvoco’s strategy is to strengthen its leadership in Eastern India and increase market share in Western and Northern regions, supported by strong sales growth and profitability in recent quarters.

Nuvoco Vistas Corporation, promoted by the Nirma Group, has announced an investment of ₹200 crore to enhance its cement grinding capabilities in Eastern India. The expansion will be carried out through a combination of a new mill at the Arasmeta Cement Plant and debottlenecking initiatives across its Jojobera, Panagarh, and Odisha facilities.

The planned addition will increase grinding capacity by 4 million metric tonnes per annum (MMTPA) by the end of FY27. The rollout is scheduled in phases, with 1 MMTPA expected by the third quarter of FY26, an additional 2 MMTPA by the end of FY26, and the remaining 1 MMTPA during FY27. These upgrades will raise Nuvoco’s total cement capacity in the East from 19 MMTPA to 23 MMTPA, representing over a 20% increase within 18 months.

The expansion aims to enhance operational efficiency, reduce costs, and improve plant utilization while providing better access to key eastern markets, including eastern Madhya Pradesh, eastern Uttar Pradesh, West Bengal, and Odisha. Alongside capacity growth, Nuvoco is also focusing on sustainability and process optimization. Equipment upgrades, process improvements, and internal debottlenecking are expected to contribute to more efficient production and cost management.

Jayakumar Krishnaswamy, managing director of Nuvoco Vistas, highlighted that India’s cement demand is projected to grow at a compound annual growth rate of 7–8% in FY25-26. He noted that the company’s recent acquisition of Vadraj Cement Limited, combined with the current investment, reinforces Nuvoco’s strategic objective to maintain its leadership position in Eastern India while strengthening its market share in the Western and Northern regions.

As of Q1 FY26, Nuvoco Vistas’ total cement capacity stood at 25 MMTPA, with clinker production capacity at 13.5 MMTPA. During the same quarter, the company’s net profit surged to ₹133.16 crore, driven primarily by increased premiumisation and trade sales. Sales volumes for the quarter rose 6% year-on-year, reaching 5.1 million metric tonnes.

The planned investment aligns with the company’s long-term growth strategy, which focuses on expanding production capabilities, optimizing resource use, and meeting rising demand in high-growth regions. With Eastern India witnessing substantial infrastructure development and construction activity, the additional grinding capacity will allow Nuvoco to cater to increasing demand more efficiently.

The expansion is also expected to strengthen the company’s competitive positioning, enabling it to offer improved delivery timelines and customized product offerings for both trade and premium segments. By leveraging technological upgrades and process improvements, Nuvoco aims to maintain cost competitiveness while ensuring consistent product quality.

Image- nuvoco.com


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