Schedule, Multi-Phase Capacity Expansion Across Gujarat and Eastern India

Published at : Aug 31, 2026 11:12 AM (IST)

Total Views : 48

Schedule, Multi-Phase Capacity Expansion Across Gujarat and Eastern India

- Nuvoco Vistas delivered its highest-ever first-quarter performance in Q1 FY27, with cement volumes rising 5% year-on-year to 5.3 million tonnes and EBITDA increasing 7% to Rs. 572 crore despite geopolitical and logistical challenges.
- The company commissioned its 2 MTPA Surat grinding unit ahead of schedule, marking its first capacity expansion in Western India, while Kutch clinker and grinding projects remain on track for phased commissioning from Q3 FY27.
- Management remains optimistic on cement demand, supported by government infrastructure spending, housing activity and continued focus on cost optimisation and operational excellence.

The Print Times

Nuvoco Vistas Corporation Limited reported a strong start to FY27, achieving its highest-ever first-quarter cement volumes and EBITDA despite facing geopolitical disruptions, rising input costs and logistical constraints during the quarter.

Speaking during the Q1 FY27 Earnings Conference Call, Mr. Jayakumar Krishnaswamy, Managing Director, Nuvoco Vistas Corporation Limited, said the company delivered a resilient performance with cement volumes increasing 5% year-on-year to 5.3 million tonnes, while EBITDA rose 7% year-on-year to Rs. 572 crore, marking the highest first-quarter volume and EBITDA in the company's history.

He said the quarter was impacted by the conflict in West Asia, which led to higher prices of energy, packing bags and other raw materials. The company also faced logistical challenges as railway rakes were prioritised for the power sector during an intense and prolonged summer, while state elections in one of its key eastern markets further affected the operating environment.

Despite these headwinds, Mr. Krishnaswamy said the company maintained strong operational performance through disciplined cost management and operational efficiencies.

Fuel costs remained under control at Rs. 1.52 per mcal, within the guidance shared during the previous quarter, supported by fuel mix optimisation and coordinated efforts across the organisation.

A major milestone during the quarter was the inauguration of the company's 2 million tonnes per annum (MTPA) grinding unit at Surat on July 11, 2026, ahead of schedule.

According to Mr. Krishnaswamy, the Surat plant represents Nuvoco's first capacity expansion in Western India and demonstrates the company's project execution capabilities. The new facility is expected to significantly strengthen the company's presence in western India while freeing up capacity at its Rajasthan plants to better serve the northern market.

The company also provided an update on the ongoing Kutch expansion project, where both clinker and grinding units are progressing as planned.

At the clinker unit, deliveries of all major equipment and spares have been completed, while execution activities remain on schedule. Reconditioning of the coal and raw mill vertical roller mill gearbox has been completed, kiln rotation has been successfully carried out and the kiln is now ready for brick lining. The company expects to complete the overhaul of major equipment and begin trial preparations during the second quarter of FY27.

Construction of the grinding unit at Kutch is also progressing according to schedule. Major reinforced cement concrete works for the packing plant and hopper building have been completed, with civil construction targeted for completion during Q2 FY27 to facilitate mechanical and electrical installations.

Nuvoco also reported progress on the dedicated railway siding at Kutch, where earthwork has been completed and ballast and sleeper laying is currently underway. Once operational, the railway infrastructure is expected to improve logistics efficiency.

In addition, the company has commenced work on a bulk cement terminal at Sachana in Gujarat, which will also include a dedicated railway siding. The facility is targeted for commissioning by Q2 FY28 and will serve as a strategic distribution hub to strengthen the company's presence across Gujarat.

For its eastern operations, Nuvoco reiterated its plan to add 4 MTPA of cement capacity in phases up to FY28.

Looking ahead, Mr. Krishnaswamy expressed confidence in the demand outlook for the cement industry. He noted that the Central Government's capital expenditure increased 13% year-on-year to Rs. 2.5 lakh crore during the period through May 2026, representing nearly 20% of the full-year planned capital expenditure.

He added that both the Central and State Governments are targeting capital expenditure growth of approximately 20% and 15%, respectively, during FY27, which is expected to support cement demand through higher infrastructure investments and housing projects.

While the company continues to closely monitor geopolitical developments, Mr. Krishnaswamy said Nuvoco remains cautiously optimistic about the coming quarters if global tensions ease. He emphasised that the company will continue focusing on prudent procurement, cost optimisation and supply chain improvements to maintain resilient operating performance.

Responding to investor queries on the Surat plant, Mr. Krishnaswamy explained that the facility was always planned to commence operations before the Kutch clinker unit became operational.

He said the company had already been selling nearly 1 million tonnes of cement annually in Gujarat from its Chittorgarh and Nimbol plants prior to the commissioning of the Surat unit.

During the interim period, clinker for Surat will continue to be sourced from Chittorgarh and Nimbol, supporting annual sales of 1.4-1.5 million tonnes, while additional clinker required for incremental volumes will be supplied from the company's Chhattisgarh cluster.

The company is targeting annual cement sales of around 2 million tonnes in Gujarat by the end of Q4 FY27, translating into monthly sales of 1.6-1.7 lakh tonnes, which would represent an increase of 30,000-50,000 tonnes per month over the current run rate.

Mr. Krishnaswamy added that Nuvoco is also exploring clinker exchange arrangements with other cement producers to optimise logistics and reduce transportation costs until the Kutch clinker unit becomes operational, which is expected by January 2027, with commercial supplies likely to begin by the start of FY28.
 

Published at : Aug 31, 2026 11:12 AM (IST)

Total Views : 48