Hindalco Industries, the metals flagship of the Aditya Birla Group, has acquired 100 per cent equity in EMIL Mines and Mineral Resources Ltd. (EMMRL). The acquisition is a strategic step aimed at securing a long-term, reliable coal supply for Hindalco’s aluminium smelters, ensuring uninterrupted production in an increasingly competitive and energy-intensive industry.
The acquisition of EMMRL takes on an added layer of strategic alignment, as the company is a subsidiary of Essel Mining and Industries, also under the Aditya Birla Group umbrella, making this a related-party transaction. Hindalco’s board gave the green light to the deal on May 20, with the transaction expected to close within six to nine months, pending regulatory approvals.
EMMRL holds the mining lease for the Bandha coal block in Madhya Pradesh, a prized asset with an estimated 197 million tonnes of mineable coal and an impressive projected mine life of 45 years. Located just 20 kilometres from Hindalco’s Mahan power plant, the Bandha block offers a significant logistical edge. Its close proximity enables streamlined fuel transport via rail, road, or conveyor, ensuring a consistent, cost-effective energy supply to Hindalco’s energy-intensive smelting units.
What’s particularly noteworthy is that EMMRL hasn’t reported any turnover since 2020, signalling that commercial operations at the Bandha coal block are yet to commence. This gives Hindalco a unique opportunity and a clean slate to shape, develop, and integrate the mine entirely on its own terms. It paves the way for tailored operational planning, efficient resource deployment, and seamless alignment with Hindalco’s broader energy and manufacturing strategy.
As reported by Projects Today, the acquisition marks a pivotal move in Hindalco’s ongoing vertical integration strategy. By bringing coal sourcing in-house, the company is set to reduce its dependence on external suppliers, tighten control over input costs, and reinforce energy security across its aluminium value chain. This strategic shift not only enhances operational efficiency but also strengthens Hindalco’s position in a resource-sensitive global market.
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This move was announced right after Hindalco’s record-breaking FY2025 results. The company has achieved its highest-ever revenue, profit after tax (PAT), and EBITDA. For Q4 FY2025, Hindalco posted revenue of INR 64,890 crore (USD 7.6 billion), marking a 16 per cent year-on-year growth. Following the financial announcement, Hindalco also proposed a dividend of INR 5 per equity share (face value INR 1 each) for the financial year ended March 31, 2025.
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