Hindalco signs deal with Norsk Hydro for Rs 247 cr aluminium business
Aluminium manufacturing major Hindalco Industries Limited announced that it had signed an agreement with Norsk Hydro to acquire its aluminium extrusions business for an enterprise value of Rs 247 crore. The acquisition will bring an integrated facility in Kuppam, Andhra Pradesh, to Hindalco. The Kuppam aluminium extrusion plant has a capacity of 15,000 tonnes of aluminium extrusions, integrated with advanced value-added capabilities for surface finishing and fabrication. The plant is located about 120 km from Bengaluru. It provides custom aluminium extrusion products and solutions for automobiles, building and construction, and industrial appliances. After acquiring the plant, Hindalco Industries Limited will expand its footprint in South India, the second-largest extrusion market in India. Managing Director of Hindalco Industries, Satish Pai, said that it is a strategic initiative to expand Hindalco's presence in the upper-end of the value-added market. It will enhance the company's capacity in high-end extrusions and fabricated solutions. This agreement will increase the downstream capacity of Hindalco to meet the growing market demand. It will become an archetype for the company's upcoming state-of-the-art extrusions plant in Silvassa. The Indian extrusions market might expand rapidly from 3,73,000 tonnes to about 8,50,000 tonnes by 2030. Hindalco said that after commissioning the Kuppam and Silvassa plants, the company's extrusions are expected to boost from 60,000 tonnes to 1,09,000 tonnes capacity. The transaction of this acquisition is expected to close in FY23. Image Source
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