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Nuvoco Vistas Corporation Ltd, India’s fifth-largest cement manufacturer by capacity, has announced a strategic expansion of its cement grinding operations with a proposed addition of 4 million metric tonnes per annum (MMTPA). The move is aimed at strengthening its footprint in East India and optimizing operational efficiency across its existing plants.
The expansion, which involves an investment of approximately ₹200 crore, will be funded entirely through internal accruals—a testament to the company’s robust financial health and disciplined capital management. The announcement comes at a time when India’s infrastructure and housing sectors are witnessing renewed momentum, driving demand for high-quality cement products.
Expansion Blueprint: Multi-Phased Growth Strategy
Nuvoco’s 4 MMTPA grinding capacity expansion will be executed in three phases:
Phase 1: ~1 MMTPA by Q3 FY2025–26
Phase 2: ~2 MMTPA by the end of FY2025–26
Phase 3: ~1 MMTPA during FY2026–27
The company plans to install a new grinding mill at its Arasmeta Cement Plant, while simultaneously upgrading equipment and streamlining processes at its Jojobera, Panagarh, and Odisha units. These enhancements are expected to improve throughput, reduce energy consumption, and support the production of premium blended cement.
Once completed, the expansion will boost Nuvoco’s total cement capacity from 31 MMTPA to 35 MMTPA, with East India’s share rising from 19 MMTPA to 23 MMTPA—a 20% regional increase in just 18 months.
Strategic Rationale: Riding the Demand Wave
The decision to expand grinding capacity is driven by several converging factors:
Premiumization success: Nuvoco’s focus on high-margin, value-added products has yielded strong returns, with premium cement accounting for over 30% of total sales volume in FY2024.
Infrastructure boost: Completion of railway siding projects at Sonadih and Odisha plants has significantly reduced freight costs and improved logistics efficiency.
Market access: The upgrades will allow Nuvoco to better serve high-growth markets in Eastern Madhya Pradesh, Eastern Uttar Pradesh, West Bengal, and Odisha, where demand is expected to rise sharply.
“With India’s cement demand projected to grow at a CAGR of 7–8% in FY2025–26, we are well-positioned to capitalize on this momentum,” said Jayakumar Krishnaswamy, Managing Director of Nuvoco Vistas. “This expansion is not just about capacity—it’s about sustainability, efficiency, and long-term value creation.”
Sustainability and Innovation at the Core
Nuvoco’s expansion strategy is deeply aligned with its sustainability goals. The company aims to increase the share of blended cement, which uses industrial by-products like fly ash and slag, thereby reducing carbon emissions and conserving natural resources.
The new grinding units will incorporate energy-efficient technologies, waste heat recovery systems, and digital process controls to minimize environmental impact. Nuvoco also continues to invest in its Modern Building Materials (MBM) division, offering eco-friendly products like wall putty, tile adhesives, and waterproofing agents under the Zero-M brand.
Market Impact and Competitive Positioning
Following the announcement, Nuvoco’s stock saw a modest uptick of 0.3%, trading at ₹457.6 on the NSE. Analysts view the expansion as a strategic move to consolidate market share in East India, where Nuvoco already leads in capacity and distribution.
The company’s integrated network of 11 cement plants—including five integrated units and six grinding units—gives it a logistical edge in servicing diverse markets efficiently.
With the recent acquisition of Vadraj Cement Ltd, Nuvoco is on track to reach 31 MMTPA by Q3 FY2027, further reinforcing its position among India’s top cement producers.
What’s Next?
Execution of the expansion plan is expected to begin in Q4 FY2025, with procurement and civil works already underway at select sites. Nuvoco will continue to monitor market dynamics and may accelerate timelines based on demand trends and regulatory approvals.
The company’s long-term vision remains focused on building a Safer, Smarter, and Sustainable world through innovation, operational excellence, and stakeholder value creation.
Sources: Market Setup, Nuvoco Annual Report, About Nuvoco Vistas – Company Profile
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