Latest news with #AluChem
Mint
an hour ago
- Business
- Mint
Hindalco share price inches higher as arm to acquire US-based AluChem for ₹1,075 crore
Hindalco share price rose by over 1% during Wednesday's trading session following the announcement that its step-down wholly owned subsidiary, Aditya Holdings LLC, has entered into a definitive agreement to acquire a 100% interest in the US-based specialty alumina producer AluChem Companies Inc. The deal was valued at an enterprise amount of USD$125 million (approximately ₹ 1,074 crores), and the transaction is anticipated to be completed within the next 2 to 4 months. In an exchange filing, the company announced its acquisition of AluChem Companies, Inc. This decision to acquire the company as a stepdown subsidiary is a strategic initiative aimed at broadening the Company's global presence for its downstream range of specialty alumina and alumina products. AluChem Companies Inc. specializes in the production of niche alumina. Hindalco's specialty alumina division emphasizes unique alumina and alumina hydrates, which they produce internally. AluChem enhances Hindalco's footprint in North America, boasting an annual production capacity of 60,000 tonnes from its three state-of-the-art manufacturing plants located in Ohio and Arkansas. 'The acquisition unlocks immediate synergies for Hindalco, including market access and product portfolio expansion. Hindalco plans to work with AluChem's high performance technology solutions and scale up production of ultra-low soda alumina products to drive larger global market share. The acquisition reinforces our ability to offer end-to-end alumina solutions that are both future-ready and customer-centric,' said Saurabh Khedekar, CEO – Alumina Business, Hindalco Industries. ICICI Direct Research, in their report, noted that through this acquisition, the company is entering the low soda Tabular Alumina sector, which serves high-precision mechanical components and energy-intensive industrial refractories. This acquisition includes a capacity of 60k tons, raising Hindalco's overall specialty alumina capacity to 560k tons, with ambitions to reach 1 million tons by 2030. Consequently, this growth aligns with Hindalco's broader strategy to venture into value-added alumina markets, which are increasingly important for electric mobility, semiconductors, and precision ceramics. The acquisition has been valued at approximately 1.9x EV/sales based on CY24 earnings, which the brokerage considers slightly on the higher side. However, this segment is known for its strong profit margins, thus enhancing the company's overall profitability in the future. 'Thus, we maintain a positive view on the stock supported by strong demand for Aluminium and copper metal due to its incremental application in automobile and renewable spaces, strategic capacity expansion at Novelis and Hindalco and controlled leverage on B/S with Debt to Equity at ~0.5,' said ICICI Direct Research. Hindalco share price today opened at an intraday high of ₹ 678.50 apiece on the BSE, the stock touched an intraday low of ₹ 668.40 per share. According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, Hindalco share price opened with a gap-up, but lacked follow-up buying in the initial session. Hindalco share prices are currently hovering near last month's swing high. A close or sustained move above 675 would confirm a bullish cup and handle pattern, potentially driving the stock towards 730. On the downside, 650 remains a strong support, aligning with the 200-SMA.
Mint
3 hours ago
- Business
- Mint
Hindalco share price inches higher as arm to acquire US-based AluChem for ₹1,075 crore
Hindalco share price rose by over 1% during Wednesday's trading session following the announcement that its step-down wholly owned subsidiary, Aditya Holdings LLC, has entered into a definitive agreement to acquire a 100% interest in the US-based specialty alumina producer AluChem Companies Inc. The deal was valued at an enterprise amount of USD$125 million (approximately ₹ 1,074 crores), and the transaction is anticipated to be completed within the next 2 to 4 months. In an exchange filing, the company announced its acquisition of AluChem Companies, Inc. This decision to acquire the company as a stepdown subsidiary is a strategic initiative aimed at broadening the Company's global presence for its downstream range of specialty alumina and alumina products. AluChem Companies Inc. specializes in the production of niche alumina. Hindalco's specialty alumina division emphasizes unique alumina and alumina hydrates, which they produce internally. AluChem enhances Hindalco's footprint in North America, boasting an annual production capacity of 60,000 tonnes from its three state-of-the-art manufacturing plants located in Ohio and Arkansas. 'The acquisition unlocks immediate synergies for Hindalco, including market access and product portfolio expansion. Hindalco plans to work with AluChem's high performance technology solutions and scale up production of ultra-low soda alumina products to drive larger global market share. The acquisition reinforces our ability to offer end-to-end alumina solutions that are both future-ready and customer-centric,' said Saurabh Khedekar, CEO – Alumina Business, Hindalco Industries. ICICI Direct Research, in their report, noted that through this acquisition, the company is entering the low soda Tabular Alumina sector, which serves high-precision mechanical components and energy-intensive industrial refractories. This acquisition includes a capacity of 60k tons, raising Hindalco's overall specialty alumina capacity to 560k tons, with ambitions to reach 1 million tons by 2030. Consequently, this growth aligns with Hindalco's broader strategy to venture into value-added alumina markets, which are increasingly important for electric mobility, semiconductors, and precision ceramics. The acquisition has been valued at approximately 1.9x EV/sales based on CY24 earnings, which the brokerage considers slightly on the higher side. However, this segment is known for its strong profit margins, thus enhancing the company's overall profitability in the future. 'Thus, we maintain a positive view on the stock supported by strong demand for Aluminium and copper metal due to its incremental application in automobile and renewable spaces, strategic capacity expansion at Novelis and Hindalco and controlled leverage on B/S with Debt to Equity at ~0.5,' said ICICI Direct Research.
Time of India
6 hours ago
- Business
- Time of India
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. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads 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 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 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 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 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 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 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)
Time of India
10 hours ago
- Business
- Time of India
Hindalco to buy AluChem for $125 million, its 3rd US deal
MUMBAI: Hindalco Industries, the metals flagship of the Aditya Birla Group, is set to acquire AluChem Companies, an Ohio-based manufacturer of specialty alumina, for an enterprise value of $125 million, marking its third acquisition in the US. The company previously acquired Novelis and Aleris Corporation. The AluChem acquisition will be carried out through Aditya Holdings, a step down wholly owned subsidiary of Hindalco. The Indian company currently operates 500,000 tons of specialty alumina capacity and aims to double it to 1 million tons by FY30. The global specialty alumina market is projected to grow significantly, with increasing demand for solutions in sectors ranging from ceramics and electronics to aerospace and medical applications to electric mobility and semiconductors. AluChem brings Hindalco a strong presence in North America with an annual capacity of 60,000 tons across its three manufacturing facilities in the states of Ohio and Arkansas. Aditya Birla Group chairman Kumar Mangalam Birla called the acquisition an important step in Hindalco's strategy to build a leadership position in 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 high-impact growth opportunities," he said. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
14 hours ago
- Business
- Business Standard
Hindalco to acquire AluChem for $125 mn to grow speciality alumina reach
Hindalco Industries, a part of the Aditya Birla Group, will acquire a 100 per cent equity stake in AluChem Companies, a US-based manufacturer of speciality alumina, for an enterprise value of $125 million, it said in a stock exchange filing. 'This acquisition is an important step in our global strategy to build a leadership position in value-added, high-tech materials,' Kumar Mangalam Birla, chairman, Aditya Birla Group, said in a statement. '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. 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.' The acquisition will be carried out through Aditya Holdings LLC, a step-down wholly owned subsidiary of Hindalco Industries. The indicative time period for completion is approximately two to four months, the stock exchange filing stated. Through this deal, Hindalco Industries is expected to gain a strong presence in North America, with an annual capacity of 60,000 tonnes across its three advanced manufacturing facilities in Ohio and Arkansas. Currently, Hindalco operates 500 thousand tonnes of speciality alumina capacity and aims to scale up to 1 million tonnes by FY30, the company said in a statement. According to the filing, the acquisition will also help the company expand its global footprint in its downstream portfolio of speciality alumina and alumina products. The company's speciality alumina segment has delivered consistent double-digit growth in recent years and has emerged as a high-growth, high-margin vertical within its portfolio, the statement added. It further noted that as speciality alumina finds newer applications across sectors such as electric mobility, semiconductors and precision ceramics, the acquisition will enable Hindalco Industries to access next-generation alumina applications and drive value-accretive growth. 'This acquisition marks a pivotal step in strengthening our capabilities in next-generation alumina applications,' said Satish Pai, managing director, Hindalco Industries. 'As alumina gains increasing relevance in critical and clean-tech sectors, AluChem's 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, said: 'This partnership with Hindalco Industries 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 a consistent, reliable raw material supply chain. Their ability to leverage research and development (R&D) capabilities and a talented workforce adds tremendous value to our innovation pipeline, helping drive market expansion beyond North America.' Additionally, AluChem Companies is a long-established supplier of ultra-low soda calcined and tabular alumina—materials known for their thermal and mechanical stability and used in cutting-edge applications in high-precision mechanical components and energy-intensive industrial refractories, the release stated. 'Hindalco Industries plans to work with AluChem's high-performance technology solutions and scale up production of ultra-low soda alumina products to drive a larger global market share. The acquisition reinforces our ability to offer end-to-end alumina solutions that are both future-ready and customer-centric,' said Saurabh Khedekar, chief executive officer, alumina business, Hindalco Industries. Tech Mahindra CEO earned ₹53.9 cr in FY25 Mohit Joshi, chief executive officer and managing director of Tech Mahindra, earned a salary of about ₹53.9 crore in 2024-25 (FY25), according to the company's latest annual report. Joshi's payment included a salary of ₹11.4 crore, perquisites of ₹30.8 crore, and variable pay and bonus amounting to ₹11.7 crore, totalling ₹53.9 crore. Joshi's median remuneration ratio to the median remuneration of employees was 840.22. 'Mohit Joshi was associated for part of FY24 i.e. from 19th June, 2023 to 31st March 2024. Hence, percentage increase in remuneration is not comparable,' the annual report said. Joshi's salary is higher than the CEOs of larger information technology (IT) services companies. K Krithivasan, CEO and MD of TCS, earned ₹26.5 crore in FY25, up 4.6 per cent from the previous year, and Infosys CEO Salil Parekh earned ₹80.6 crore in FY25. Avik Das
