Comments
Hindalco Industries, an Aditya Birla Group company, has acquired the Indian aluminium extrusion unit of Norway-headquartered Hydro for an enterprise value of ₹247 crore. The transaction is expected to close in the next quarter.
Hydro’s integrated facility at Kuppam in Andhra Pradesh has 15,000 tonne aluminium extrusions capacity and is integrated with advanced value added capabilities for surface finishing and fabrication. It offers custom aluminium extrusion products and solutions for auto, building and construction, and industrial applications.
Expand presence
The acquisition further extends Hindalco’s footprint in the southern market, the second-largest extrusions market in India. Satish Pai, Managing Director, Hindalco Industries, said the acquisition is a strategic step to expand the company’s presence in the upper-end of the value-added market.
The specialised product portfolio of Hydro will enhance Hindalco’s capabilities in high-end extrusions and fabricated solutions and is part of a long-term strategy to augment downstream business, he added.
Also read: Hindalco Industries plans to repay ₹6,000-cr debt from June next
The domestic aluminium extrusions market is expected to more than double to 8.50-lakh tonne by 2030 from the current level of about 3.73-lakh tonne. Once commissioned, the Kuppam and Silvassa units are expected to boost Hindalco’s aluminium extrusions capacity from 60,000 tonne to 1.09-lakh tonne.
Other facilities
Earlier, Hindalco enhanced its downstream capacities at Silvassa and Hirakud with an investment of ₹3,730 crore. Last month, the company acquired Polycab’s wholly-owned Ryker copper wire rod unit for ₹323 crore. Ryker has a cast and rolled copper wire rod manufacturing facility of 2.25-lakh tonne at Waghodia in Gujarat.
Hindalco operates one of the world’s largest single-location custom copper smelters at Dahej in Gujarat, with a copper rod capacity of 3.45 lakh tonne. The acquisitions are aligned with Hindalco’s strategy to increase downstream capacity to meet growing market demand, further expand product portfolio and increase revenue from value-added products to beat the volatility in metal prices on LME.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.