In India, Hindalco Industries, headquartered in Maharashtra and part of the Aditya Birla Group, has announced the acquisition of US-based AluChem Companies Inc through its subsidiary Aditya Holdings LLC. The USD 125 million (approximately ₹1,075 crore) deal will strengthen Hindalco’s presence in the global specialty alumina market. The acquisition includes AluChem’s 60,000-ton annual production capacity across its three plants in Ohio and Arkansas, USA. It aligns with Hindalco’s strategic plan to expand into value-added alumina segments catering to sectors such as electric mobility, semiconductors, and industrial refractories.

Hindalco Industries Ltd., one of India’s leading aluminium and copper producers and a flagship company of the Aditya Birla Group, announced that its step-down subsidiary, Aditya Holdings LLC, has entered into a definitive agreement to acquire AluChem Companies Inc for USD 125 million (approx. ₹1,075 crore).

Based in Maharashtra, Hindalco Industries is a global metal powerhouse known for its integrated operations in aluminium and copper. With this acquisition, it aims to significantly strengthen its presence in the high-margin specialty alumina segment, particularly in North America.

AluChem, based in the United States, operates three state-of-the-art plants in Ohio and Arkansas and has an annual production capacity of 60,000 tonnes. The acquisition is expected to be completed within the next 2 to 4 months, subject to regulatory approvals.

Saurabh Khedekar, CEO – Alumina Business, Hindalco Industries, stated, “The acquisition unlocks immediate synergies for Hindalco, including market access and product portfolio expansion. We plan to scale up ultra-low soda alumina production, reinforcing our commitment to offer end-to-end solutions that are future-ready and customer-centric.”

ICICI Direct Research observed that this acquisition positions Hindalco in the low-soda Tabular Alumina segment, widely used in high-precision mechanical parts and industrial refractories. This move raises Hindalco’s total specialty alumina capacity to 560,000 tonnes, with an ambition to reach 1 million tonnes by 2030.

The acquisition complements Hindalco’s ongoing efforts to diversify into value-added alumina used in electric mobility, semiconductors, and precision ceramics. Valued at around 1.9x EV/sales based on CY24 earnings, the deal may appear slightly expensive, but the segment’s high profitability potential justifies the valuation.

ICICI Direct added, “We remain positive on Hindalco’s outlook, driven by growing demand in aluminium and copper, strategic expansion at Novelis, and healthy balance sheet management with a debt-to-equity ratio of ~0.5.”

Following the announcement, Hindalco’s share price rose by over 1%, reaching an intraday high of ₹678.50 on the BSE. Technical analyst Rajesh Bhosale from Angel One noted that a close above ₹675 could trigger a bullish breakout, potentially pushing the stock towards ₹730, while ₹650 remains a strong support level.

This strategic acquisition underscores Hindalco’s long-term commitment to innovation and global leadership in value-added aluminium solutions.

Read the full article here: India’s Hindalco Expands Its Global Footprint with a ₹1,075 Cr Deal — For more updates, visit Wittiya – Top Business News, Stock Market Insights & Financial Updates (Wittiya).