New Delhi, Jan 6 (PTI) Cement maker Nuvoco Vistas Corp. Ltd on Monday said it has emerged as the successful applicant for Vadraj Cement Ltd, which is currently undergoing corporate insolvency resolution process.

The resolution plan submitted by Nuvoco has been approved by the Committee of Creditors (CoC), and a Letter of Intent (LOI) has been issued, Nuvoco Vistas Corp said in a statement.

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Without sharing the financial details, the company said the transaction will be implemented by Vanya Corporation Pvt Ltd, a wholly-owned subsidiary, and it intends to fund the transaction without a significant rise in its consolidated debt levels.

"A phased investment will be spread over 15 months towards the refurbishment of assets and to drive operational improvements across the Vadraj Cement Ltd (VCL) plants," it said, adding the estimated target date to commence production is around Q3 FY27, subject to National Company Law Tribunal (NCLT) approvals for the resolution plan.

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VCL's existing facilities include a 3.5 MMTPA clinker unit in Kutch, Gujarat, and a 6 MMTPA grinding unit in Surat, Gujarat.

"Additionally, VCL owns high-quality limestone reserves, ensuring a consistent and sustainable supply of raw materials for future production.

"The captive jetty in Kutch further enhances logistical efficiency," the statement said.

With this transaction, Nuvoco's total cement production capacity is set to increase to approximately 31 MMTPA -- 19 MMTPA in the east, 6 MMTPA in the north, and 6 MMTPA in the west, consolidating its position as the fifth-largest cement group in India for long-term, it added.

Nuvoco Vistas Corp Managing Director Jayakumar Krishnaswamy said the deal consolidates "our position as the fifth-largest player in the Indian cement industry and further strengthening our market dominance".

He further said, "It complements our existing operations perfectly, expanding our geographic reach and operational capabilities. This strategic investment will enhance our portfolio, diversify our offerings and enable us to deliver greater value and superior service to our customers in a competitive and dynamic business landscape."

Nuvoco said once the transaction is consummated, it is anticipated to foster substantial synergies with its existing manufacturing facilities in Nimbol and Chittorgarh, Rajasthan, enabling enhanced operational efficiency.

"This will drive logistics optimisation, streamline operations, and improve competitiveness, providing the company with better market access and a strengthened supply chain across key regions," the company said.

In February last year, NCLT admitted the insolvency process of Vadraj Cement Ltd (VCL) after Punjab National Bank (PNB) filed a plea over a default of over Rs 87.45 crore.

According to media reports, Adani Group, JSW Cement and ArcelorMittal were in the race to buy VCL, which had a total debt of Rs 7,000 crore owed to various lenders such as Union Bank of India, Central Bank of India, Indian Overseas Bank, Bank of India, and Bank of Baroda, besides PNB.

Earlier in August 2018, the Bombay High Court ordered winding up of Vadraj Cement following a case filed by trade creditor Beumer Technologies India.

However, the court recalled the order and transferred the matter to the NCLT bench.

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