Hindalco plans to scale up the rolling capacity to 100 thousand tonnes by investing around $180 million in Brazil. Hindalco’s Managing Director and Chief Executive officer Satish Pai made the announcement on Friday, November, 2.
“We will do a bit of capacity addition in Brazil where we have 80% market share (in the aluminium segment). We will add another 80-100KT for expanding rolling capacity there,” Satish Pai said.
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Hindalco, which announced the acquisition of downstream aluminium producer Aleris for $2.58 billion earlier this year through its wholly-owned subsidiary Novelis, expects to close the deal by April 2019. “All is progressing well. Though no clearances have come yet, we don’t have any red flags either. Financial closures will happen when we close regulatory aspects of the deal,” Pai added.
“The $775 million (of cash payment) will be funded through a five-year term loan and the rest will be through a one-year bridge loan. We will refinance the loans and call back the bonds.”
On Friday, Hindalco reported revenue from aluminium segment at INR 6,135 crore, as compared to INR5,218 crore in Q2 FY18. EBITDA stood at INR1,364 crore in Q2 FY19, up 13 per cent compared to INR1,204 crore in Q2 FY18.
The company’s aluminium production stood at 326 thousand tonnes in Q2 FY19, as plants continued to operate at peak designed capacities. Alumina (including Utkal Alumina) production was marginally lower at 701 thousand tonnes,
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