Hindalco Inds arm inks pact to acquire 100% stake in AluChem Companies
Hindalco Industries said that its step-down wholly owned subsidiary, Aditya Holdings LLC has signed definitive agreement with AluChem Companies to acquire 100% stake for total consideration of $125 million.
AluChem is a North America-based specialty alumina producer with over 45 years of legacy in delivering high-performance alumina for industrial applications. Its product range includes calcined, reactive, and tabular aluminas used in demanding environments such as refractories, ceramics, and electronics. The company operates three facilities across Ohio and Arkansas. Its turnover was $66,377,422 in CY 2024.
The acquisition of AluChem Companies, as a stepdown subsidiary is a strategic move designed primarily to expand the companys global footprint for its downstream portfolio of speciality alumina and alumina products.
AluChem brings Hindalco a strong presence in North America with an annual capacity of 60,000 tons across its three advanced manufacturing facilities in Ohio and Arkansas. The company is a long-established supplier of ultra-low soda calcined and Tabular Alumina, materials known for their exceptional thermal and mechanical stability used in cutting-edge applications in high precision mechanical components, and energy-intensive industrial refractories.
The company said that the global specialty alumina market is projected to grow significantly, with increasing demand for tailored solutions in sectors ranging from ceramics and electronics to aerospace and medical applications. Hindalco currently operates 500 thousand tons of specialty alumina capacity and aims to scale up to 1 million tons by FY30.
The transaction is expected to close in the upcoming quarter, subject to customary closing conditions and regulatory approvals.
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 specialty alumina space will not only accelerate the development of future-ready, sustainable solutions but also open new pathways to pursue highimpact growth opportunities. By integrating advanced technologies into our value chain, we are reinforcing our commitment to self-reliance, import substitution, and building scale in innovation-led businesses.
Satish Pai, managing director, Hindalco Industries, said, This acquisition marks a pivotal step in strengthening our capabilities in next-generation alumina applications. As alumina gains increasing relevance in critical and clean-tech sectors, AluChems advanced chemistry capabilities will significantly enhance our ability to serve these fast-evolving markets. Importantly, it deepens our high value-added portfolio with differentiated products that drive profitability and strengthen our global competitiveness. It reinforces our commitment to innovation and to expanding our global footprint.
Ronald P. Zapletal, founder, AluChem Companies, Inc., said, "This partnership with Hindalco brings AluChem the ability and capital to scale up faster and build scale in North America. Aluchem will benefit from their world-class sustainability and safety standards and practices, access to integrated operations and consistent, reliable raw material supply chain. Their ability to leverage R&D capabilities and a talented workforce adds tremendous value to our innovation pipeline, helping drive market expansion beyond North America."
Hindalco Industries, the metals flagship of the Aditya Birla Group, is the world's largest aluminium rolling and recycling company, a major copper player, and one of Asia's largest producers of primary aluminium. In India, the companys aluminium manufacturing units cover the complete value chain, from bauxite mining, alumina refining, coal mining, captive power generation and aluminium smelting, to downstream value-addition of aluminium rolling, extruding, and foil making.
The Aditya Birla Group companys consolidated net profit surged 66.4% to Rs 5,283 crore on 15.9% increase in revenue from operations to Rs 64,890 crore in Q4 FY25 over Q4 FY24.
The scrip rose 0.22% to Rs 671 on the BSE.
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