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    Bidding Frenzy for Vadraj Cement as Top Players Circle Insolvent Company

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    Vadraj Cement, formerly owned by ABG Shipyard, has ignited a bidding war among industry giants. The company was admitted to corporate insolvency in February after years of liquidation, and it has attracted interest from major cement players like UltraTech Cement, JSW Cement, and ArcelorMittal.

    A Dozen Contenders Vie for ₹8,000 Crore Debt

    With a total creditor debt of around ₹8,000 crore, Vadraj Cement is a prime target for acquisition. Companies like Nirma Group, JK Cement, and Naveen Jindal’s group entity are also in the fray.

    Beyond Big Names: A Diverse Pool of Potential Buyers

    The list of interested parties extends beyond established names. AM Mining India (a joint venture between ArcelorMittal and Nippon Steel), Oaktree Capital-backed India Opportunities XII Investments, and Nirma’s Nuvoco Vistas Corporation have all submitted expressions of interest (EoIs). Jindal Panther Cement (Naveen Jindal Group) and CN Infrabuild (PN Group) have also shown interest.

    Vadraj Cement: An Attractive Package

    Vadraj Cement’s assets include a 10,000 TPD clinker unit in Kutch, a 6 million tonnes cement grinding unit in Surat (both in Gujarat), limestone mining rights, and a captive jetty in Kutch. This comprehensive infrastructure makes it an attractive proposition for acquisition.

    A Second Chance After Liquidation

    Vadraj Cement’s journey to potential revival is fascinating. After being under liquidation for over five years under the Bombay High Court’s supervision, the National Company Law Tribunal (NCLT) admitted it for corporate insolvency in February 2024. This shift offers lenders a chance to recover their dues.

    Lenders Hope for Revival

    The company’s insolvency case offers a glimmer of hope for creditors like Punjab National Bank (highest claim of ₹2,005 crore), Union Bank of India (₹1611 crore), Indian Overseas Bank, and Central Bank of India.

    The Road Ahead

    With multiple big players interested, Vadraj Cement’s future will likely be decided through a competitive bidding. The coming days will reveal which company emerges victorious, taking over the reins of this potentially resurgent cement producer.

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