Nick Madden credits Aditya Birla Group for Novelis' prosperity

At a crucial time in the rolled aluminum industry, having an Indian parent company has helped catapult Atlanta-based Novelis Inc. past its competitors, Nick Madden, a senior vice president, said June 21 at the USA India Business Summit.

While many firms in the space are either owned by venture capital outfits seeking quick returns or integrated aluminum companies hesitant to invest in rolled aluminum, Aditya Birla Group has consistently fed Novelis a vital stream of capital.

Novelis, which was acquired by the Mumbai-based conglomerate in 2004 and moved global headquarters to Atlanta in 2010, now has 17 percent of global market share in rolled aluminum, nearly double that of Alcoa, its closest competitor, Mr. Madden said during a panel discussion at the Georgia Tech Research Institute.

"There's never been a better time to be in this business, and actually there's never been a better time to be at Novelis, and that's because we're able to stretch our lead now because of this excellent relationship with the parent company," he said.

Last year Aditya Birla acquired another metro Atlanta-based firm, Columbian Chemicals Co., for more than $875 million, solidifying its position in the market for carbon black, a material used in tires, ink and other products.

The rolled aluminum industry is growing as middle classes grow in emerging markets. Novelis's products are used in beverage cans, automotive panels and consumer electronics like televisions.

Novelis also recycles 40 billion aluminum cans per year at plants in multiple continents, making it the largest can recycler in the world.

Its most promising product is aluminum sheet for cars as auto makers seek to make them lighter and more fuel efficient. Novelis has been able to keep control of more than half the market thanks to the Birla Group's investments, Mr. Madden said. And it's not just outside of India. Novelis is building a can rolling mill in Hirakud in the eastern part of the country. It's the first plant in India capable of making aluminum cans, a product that requires precision technology, Mr. Madden said.

India is spending $1 trillion on infrastructure over the next five years, opening the door for American architectural, construction and engineering firms. Civil aviation and energy are also poised to experience huge growth, he said.

Stephen White, an Atlanta native who spent 2007-10 as deputy chief of mission at the U.S. Embassy in New Delhi before retiring from diplomatic service, said he agrees and remains "bullish" about opportunities for American products and services there.

"I've always said that you should think of India not as a poor country but as a rich country with a lot of poor people," Mr. White said.

When he first went to India in 2000, people were riding bikes and scooters and driving the occasional locally made Ambassador automobile, he said.

Later in the decade, "those who used to drive Ambassadors were driving Audis, Mercedes, BMWs and Bentleys. More importantly though, the cyclists were driving scooters, the scooterists were driving India-assembled Fords and Chevys," Mr. White said.