Hindalco shares in focus after subsidiary acquires US-based AluChem for $125 mn
Hindalco's subsidiary has acquired US-based AluChem for $125 million, marking its entry into the low-soda tabular alumina space. The move boosts Hindalco's speciality alumina portfolio, strengthens its North American footprint, and aligns with its strategy to lead in high-tech, value-added materials.
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Shares of Hindalco Industries , the metals flagship of the Aditya Birla Group , will be in focus on Wednesday after the company announced the acquisition of US-based AluChem Companies, Inc. for an enterprise value of $125 million. The deal will be executed through Aditya Holdings LLC, a step-down wholly owned subsidiary of Hindalco.This marks the first entry by an Indian company into the low-soda tabular alumina segment, significantly strengthening Hindalco's presence in precision-engineered, high-performance industrial materials. Tabular alumina is a premium-grade material used in applications across refractories, ceramics, and advanced manufacturing.With this acquisition, Hindalco enhances its footprint in North America and broadens its speciality alumina portfolio. The company's speciality alumina business — a key pillar in its value-added product strategy — has seen consistent double-digit growth and has emerged as a high-margin vertical in recent years.As speciality alumina gains traction across sectors such as electric mobility, semiconductors, and precision ceramics, the acquisition positions Hindalco to access next-generation applications and drive innovation-led growth.AluChem has a strong presence in North America, with an annual production capacity of 60,000 tonnes across three manufacturing facilities located in Ohio and Arkansas. It is a well-established supplier of ultra-low soda calcined and tabular alumina, known for its thermal and mechanical stability, catering to high-precision industries and energy-intensive applications.Kumar Mangalam Birla, Chairman of Aditya Birla Group, said, 'This acquisition is an important step in our global strategy to build a leadership position in value-added, high-tech materials.Our strategic foray into the speciality alumina space will not only accelerate the development of future-ready, sustainable solutions but also open new pathways to pursue high-impact growth opportunities."Hindalco shares have gained around 13% so far in 2025 and have delivered a robust return of 64% over the past two years. The company currently commands a market capitalisation of approximately Rs 1.5 lakh crore.: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
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