Hindalco Industries acquires global aluminium giant Hydro’s aluminium extrusions business in India
On 17th December 2021, the leading player in the extrusions industry in India, Hindalco Industries Limited inked a definitive agreement to acquire global aluminium giant Hydro’s aluminium extrusions business in India for INR 247 crore.
The world’s largest aluminium rolling and recycling company said in a statement to the stock exchanges on 17th December: “This acquisition from Hydro brings into the Hindalco fold, an integrated facility located in Kuppam, Andhra Pradesh.”
Norway headquartered Hydro’s Kuppam plant in Andhra Pradesh, India has a production capacity of 15,000-tonne of aluminium extrusions and is integrated with advanced value-added capabilities for surface finishing and fabrication.
The Kuppam facility offers custom aluminium extrusion products and solutions for auto, building and construction sector and industrial applications. It will also support expanding Hindalco’s footprint in the Southern part of India, the second-largest extrusions market in India.
Satish Pai, Managing Director, Hindalco said: “The acquisition of the Kuppam plant is a strategic step to expand the company's presence in the upper-end of the value-added market. The plant’s specialised product portfolio will enhance our capabilities in high-end extrusions and fabricated solutions.”
“The acquisition is the latest step in Hindalco's long-term strategy to augment its downstream business. Over the past year, we have already announced a total Capex of INR 3,730 crores towards the addition of downstream capacities at Silvassa and Hirakud. Our recent acquisition of the Ryker copper wire rod unit for our copper value-added portfolio is also in line with this strategy.”
Hindalco is focusing to escalate the downstream capacity to fulfil the growing market demand and augment the product portfolio and increase revenue from value-added products.
The company said: “The Kuppam plant will also serve as an archetype for Hindalco’s upcoming state-of-the-art extrusions plant in Silvassa.”
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