Indian aluminium giant Hindalco acquired Atlanta-based company Novelis, a world leader in .. “Experts say the Hindalco-Novelis deal makes sound sense. Aditya Birla Group’s Hindalco Industries Ltd’s US subsidiary Novelis will buy Aleris Corporation, one of the largest aluminium producing. Novelis’ acquisition of Aleris will help parent Hindalco insulate itself The $ billion cash deal has valued Aleris at about seven times its.
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Hindalco gears up to reap benefits of Novelis deal – The Economic Times
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NIFTY 50 10, 2. Drag according to your convenience. Cans for beverage majors such as Pepsi and Coke will soon be made in India. Hindalco Industries, which acquired Novelis inwill make the high-margin can sheets for global buyers at its upcoming facility in Hirakud, Orissa, through a plant relocated from Novelis’ UK unit.
Hindalco to acquire Novelis for $6 bn – Livemint
The move, which will meet Hindalco’s main reason for acquiring Novelis inis expected to boost the Birla Group flagship’s profitability due to the premium pricing that such can sheets command. The technology to make such sheets is limited to the top global four aluminium producers, with Novelis leading the bracket.
We follow a global marketing strategy and the target mark up and profitability of our Hirakud facility is expected to be in line with Novelis’ premium portfolio margins,” said Hindalco managing director Debu Bhattacharya. Hindalco will primarily target export markets for supplying can body stock, a high, value-added aluminium product, from the new factory at Hirakud.
Aleris Corp buy may stretch Hindalco, but will give it scale
We will mainly try to export the product and supply to Canpack, a leading multinational producer of cans, which has a large factory at Aurangabad,” said Mr Bhattacharya, who is also the vice-chairman of Novelis. Poland-based Canpack is one of the largest producers of aluminium-based packaging material for beer, beverages, food and chemical industry and has a million can facility at Aurangabad.
But a falling market share in Europe and strong demand patterns in Asia have made can sheet manufacturing in India more feasible. Hindalco said that while there are technology and asset transfer regulations involved in such a move, “We have complied in letter and hondalco.
Our Hirakud plant is expected to be up and running by October this year.
Following this, we would have to qualify for supplying the product. Once we qualify, we will start supplying from Hirakud,” said Mr Bhattacharya. The project will also enable Hindalco to manufacture can body stock for the domestic market.
To start with, Hindalco is setting up an initial capacity oftonnes of can body stock and will later expand it totonnes. The dismantling and refurbishment of equipment from Novelis’ Rogerstone plant has begun.
Novelis announced the closure of the Rogerstone plant in Marchmore than two years after the acquisition. Hindalco’s move to raise the share of high value items is a strategy to insulate revenues from fluctuations in global aluminium prices and input cost rises.
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Hindalco to acquire Novelis for $6 bn
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