NUVOCO

Expands to Gujarat to Diversify Beyond Eastern India

is actively expanding into Western and Northern India to reduce its heavy reliance on eastern markets, which currently account for 75–80% of its total capacity. Aggressive Gujarat Targets: Following the acquisition of Vadraj Cement, the company aims to scale its annualized cement sales in Gujarat from 1.5 million tonnes to 2 million tonnes by the end of the fiscal year, targeting 5 million tonnes annually by 2030 for a 12% market share. Strategic Absence from South India: Entry into South India is excluded from Nuvoco's immediate 5-year plans due to a lack of local limestone reserves, as the company prefers expanding where it already holds limestone deposits or can acquire them at reasonable valuations. Key Infrastructure Projects: To support its regional growth, Nuvoco is constructing a bulk cement unit near Viramgam to serve Kutch, Ahmedabad, and Surat, while evaluating greenfield, brownfield, or unit setups in Rajasthan and Karnataka. Financial Resilience & Operational Adjustments: Despite West Asia conflict-related cost inflation, Q1 net income rose 19% to ₹158 crore on strong realizations. Additionally, the company reduced its petcoke fuel usage from 38% to 27% to mitigate rising fuel expenses. Long-Term Industry Positioning: Planning to reach 35 million tonnes of capacity by FY28, management acknowledges that bridging the gap with India's top four cement producers remains difficult due to widespread industry-wide capacity expansion.