Aditya Birla Group’s flagship metal works company Hindalco Industries Ltd. has recently announced a 100 percent equity stake acquisition in Ryker Base Pvt. Ltd
Aditya Birla Group’s flagship metal works company Hindalco Industries Ltd. has recently announced a 100 percent equity stake acquisition in Ryker Base Pvt. Ltd. The $18 billion metals powerhouse, Hindalco which is the world’s largest aluminum company by revenues is set to acquire Ryker Base, a subsidiary of Polycab India Ltd. via a self-owned subsidiary named Renuka Investments and Finance Ltd.
The market value of Ryker’s equity stake subjected to customary working capital adjustments and net debt on the date of closing is considered to be Rs 323 crore.
Being one of Asia’s largest producers of primary aluminum and a renowned player in the copper market, the acquisition of Ryker Base is expected to strengthen Hindalco’s copper manufacturing capacity given the time-to-market advantage, that will enable Hindalco to cater to the growing demand from electrical and electronics sector.
Hindalco is India’s largest copper producer and contributes heavily to India’s domestic market for refined copper products. The company’s copper products are customized to serve the purpose of home electrification as well as India’s core sectors like power, construction, automobiles, and Indian Railways. Hindalco has 48 manufacturing plants across 10 countries.
Ryker currently operates a 2,25,000-ton plant located at Waghodia (Gujarat) to manufacture cast and rolled copper wire rods. While Hindalco’s copper facility in India comprises a world-class copper smelter, downstream facilities, and a captive jetty at Dahej (Gujarat), this acquisition deal will boost the company’s current copper rod manufacturing capacity which is 3,45,000 tons.
Satish Pai, Managing Director, Hindalco Industries, said that Hindalco’s Copper will act as a catalyst, accelerating India’s journey on the path of Total Electrification, Urbanization, Renewable Sector, and E-Mobility. Hindalco has taken this step to broaden its manufacturing capacity keeping the nation’s industrial needs in mind, he added.
Mr Pai while commenting on the deal said that the acquisition will take forward Hindalco’s downstream strategy. He also stated that the company had recently made an announcement of about two projects that will focus on a greenfield aluminum extrusions plant in Silvassa, and another facility in Hirakud that will specifically cater to provide flat-rolled products. These projects are expected to enhance the company’s product profile towards more value-added products. And the Ryker acquisition will further complement the company’s portfolio of downstream products.
Committing to Hindalco’s purpose of building a sustainable world, the company is hoping to provide innovative solutions for a green and clean planet. Ryker’s copper wire rods facility uses renowned German technology that consumes less energy ultimately resulting in low carbon emissions. Hence, this acquisition is well-aligned with Hindalco’s ESG focus.