Jayakumar Krishnaswamy, Managing Director
The cement arm of Nirma Group — Nuvoco Vistas Corp — expects its business in Gujarat to achieve profitability levels comparable to its North India operations within two to three years, as the company ramps up capacity in the western market while maintaining its premium positioning.“I don’t think we can judge the performance by the first year of launch in Gujarat. Our modelling very clearly says that in the second and third year, EBITDA per tonne in Gujarat will be equal to EBITDA per tonne of the rest of North India,” Managing Director Jayakumar Krishnaswamy said during the company’s post-earnings analyst call recently. The comments come after Nuvoco inaugurated its 2 million tonne per annum (MTPA) Surat grinding unit earlier this month, marking its first capacity expansion in western India.Capacity ramp-up in GujaratThe company is also commissioning the Vadraj assets in phases, with the Kutch clinker unit expected to become operational later this financial year. Krishnaswamy said the company is targeting annualised cement sales of around 2 million tonnes in Gujarat by the fourth quarter of FY27, up from the current run rate of 1.3-1.4 million tonnes. Initially, clinker for the Surat unit will be sourced from Nuvoco’s Chhattisgarh cluster until the Kutch clinker plant starts operations. The company is also evaluating clinker swaps with other cement makers to reduce logistics costs.Premium positioning to remain intactDespite expanding aggressively in Gujarat, Nuvoco said it does not intend to sacrifice pricing to gain market share. “We will play aggressively to sell our product. But one thing is for sure, our positioning as an A-group player will never reduce,” Krishnaswamy said. He said Nuvoco has already established a presence in Gujarat over the past two years and has expanded its dealer network across markets, including Rajkot, Saurashtra, and Porbandar, ahead of the new capacity coming on stream.According to the company, the integrated Gujarat strategy includes the Surat grinding unit, the upcoming Kutch clinker and grinding facilities, and a bulk cement terminal at Sachana, which will serve as a logistics hub for Ahmedabad and surrounding markets. The company expects the Kutch grinding unit to cater to Kutch and parts of Saurashtra, while Surat will serve south Gujarat and adjoining markets. The Sachana terminal, supported by a dedicated railway siding, will improve cement distribution across central Gujarat.Demand outlook remains positiveKrishnaswamy acknowledged that costs in Gujarat will be higher during the initial years as the business scales up. However, he said the impact would be offset through premium products, pricing discipline and an expanding distribution network. Nuvoco also maintained its demand outlook for the current financial year, expecting cement demand to grow 7-8%, supported by government-led infrastructure spending and housing activity.Published on July 28, 2026
