Hindalco Industries, an Aditya Birla Group company, has acquired US-based AluChem Companies Inc, a prominent manufacturer of Specialty Alumina, for an enterprise value of $125 million (about ₹1,075 crore).

The acquisition will be carried out through Aditya Holdings LLC, a stepdown wholly owned subsidiary of Hindalco. AluChem brings Hindalco a strong presence in North America with an annual capacity of 60,000 tonne across its three advanced manufacturing facilities in Ohio and Arkansas.

The company is a long-established supplier of ultra-low soda calcined and Tabular Alumina — materials known for their exceptional thermal and mechanical stability used in high precision mechanical components and energy-intensive industrial refractories.

Hindalco operates 5 lakh tonne of specialty alumina capacity in India and aims to scale up to one million tonne by FY30. It has alumina refineries in Belagavi (Karnataka); Muri (Jharkhand); and Renukoot (Uttar Pradesh), with a modern refinery dedicated to specialty alumina and hydrates in Belagavi.

The AluChem transaction is expected to close in the upcoming quarter.

As specialty alumina finds newer applications across electric mobility, semi-conductors and precision ceramics, the acquisition provides access to next-generation alumina applications and will drive value-accretive growth.

Kumar Mangalam Birla, Chairman, Aditya Birla Group, said the acquisition is part of the global strategy to build a leadership position in value-added, high-tech materials.

By integrating advanced technologies into the value chain, the company is reinforcing commitment to self-reliance, import substitution and building scale in innovation-led businesses, said Birla.

Satish Pai, Managing Director, Hindalco Industries said as alumina gains increasing relevance in critical and clean-tech sectors, AluChem’s advanced chemistry capabilities will enhance the ability to serve the fast-evolving markets.

Importantly, it deepens the high value-added portfolio with differentiated products that drive profitability and strengthen global competitiveness, he said.

Hindalco has been focusing on to increase the revenue share from value-added products to moderate the impact of volatile LME aluminium prices on its bottom line.

Saurabh Khedekar, CEO, Alumina Business, Hindalco Industries, said the acquisition unlocks immediate synergies for Hindalco, including market access and product portfolio expansion. Hindalco plans to work with AluChem’s high-performance technology solutions and scale up production of ultra-low soda alumina products to drive larger global market share, he said.

Ronald P Zapletal, founder, AluChem Companies Inc, said the deal brings AluChem the ability and capital to scale up faster and build scale in North America.

R&D capabilities

Hindalco’s ability to leverage R&D capabilities and innovation pipeline will drive market expansion beyond North America, he added.

The $28 billion metals powerhouse, Hindalco has operations across 10 countries and 52 manufacturing locations. It operates in the US through its wholly-owned subsidiary Novelis, a global leader in flat-rolled aluminium products.

In 2007, Hindalco Industries acquired Novelis Inc., a global leader in aluminum rolling and recycling company, for $6 billion. 

Published on June 24, 2025