Hindalco Industries Limited, the metals flagship of the Aditya Birla Group and the world’s largest aluminium rolling and recycling company, has just ratified a definitive agreement to acquire Hydro’s aluminium extrusions business in India for an enterprise value of around 2.9 billion euros. This acquisition of Hydro, the Norway-based power and aluminium company brings to Hindalco, an integrated facility located in Kuppam, Andhra Pradesh, an experienced team of employees and the ability to service a strong portfolio of reputed customers.
Hydro’s Kuppam plant has an aluminum extrusion capacity of 15,000 tons and is integrated with advanced value-added capabilities for surface finishing and fabrication. Located about 120 kilometers from Bengaluru, the facility offers customized aluminum extrusion products and solutions for industrial and construction applications. It will further expand Hindalco’s presence in South India, which is India’s second largest extrusion market.
The acquisition is aligned with Hindalco’s strategy to increase downstream capacity to meet growing market demand, further expand the product portfolio and increase revenues from value-added products. The Kuppam plant will also serve as an archetype for Hindalco’s upcoming state-of-the-art extrusion plant at Silvassa in western India.
Hindalco Industries Limited is the flagship metals company of the Aditya Birla Group. Hindalco, an $18 billion metals powerhouse, is the world’s largest aluminium company by revenue and a major player in copper. According to the company, the Kuppam plant will also serve as an archetype for Hindalco’s upcoming state-of-the-art extrusion plant at Silvassa.
“The acquisition of the Kuppam plant is a strategic step to expand our presence in the upper end of the value-added market. The plant’s portfolio of specialty products will enhance our capabilities in high-end extrusions and fabricated solutions. This acquisition is the latest step in our long-term strategy to grow our downstream business. 43 million for the addition of downstream capabilities at Silvassa and Hirakud. Our recent acquisition of Ryker copper rod unit for our value-added copper portfolio is also in line with this strategy,” confirms Satish Pai, managing director, Hindalco.
The aluminum extrusions market in India is expected to grow rapidly from the current level of 373,000 tons to reach 850,000 tons by 2030. Once commissioned, the company expects the Kuppam and Silvassa units to increase Hindalco’s total aluminium extrusion capacity from 60,000 tonnes to 109,000 tonnes. The transaction is expected to close next quarter.
