Hindalco Industries

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Hindalco Industries Limited
TypePublic
BSE: 500440
NSE: HINDALCO
NSE NIFTY 50 Constituent
ISININE038A01020
IndustryMetals
Founded1958; 63 years ago (1958)[1]
HeadquartersMumbai, Maharashtra India
Area served
Worldwide
Key people
ProductsAluminium and copper products
RevenueDecrease ₹119,330 crore (US$17 billion) (2020)[2]
Decrease ₹10,117 crore (US$1.4 billion) (2020)[2]
Decrease ₹3,763 crore (US$530 million) (2020)[2]
Total assetsDecrease ₹169,528 crore (US$24 billion) (2020)[2]
Total equityIncrease ₹58,091 crore (US$8.1 billion) (2020)[2]
Number of employees
40,000 (2020)[3]
ParentAditya Birla Group
SubsidiariesNovelis
Aleris
Websitewww.hindalco.com

Hindalco Industries Limited an Indian aluminium and copper manufacturing company, is a subsidiary of the Aditya Birla Group.[4] Its headquarters are at Mumbai, Maharashtra, India.

The company has annual sales of US$15 billion and employs around 20,000 people.[3] It is listed in the Forbes Global 2000 at 895th rank.[5] Its market capitalisation by the end of May 2013 was US$3.4 billion.[6] Hindalco is one of the world's largest aluminium rolling companies and one of the biggest producers of primary aluminium in Asia.[7]

History[]

The Hindustan Aluminum Corporation Limited was established in 1958 by the Aditya Birla Group. In 1962 the company began production in Renukoot in Uttar Pradesh making 20 thousand metric tons per year of aluminium metal and 40 thousand metric tons per year of alumina. In 1989 the company was restructured and renamed Hindalco.[8]

Operations[]

Power plants[]

  • Renusagar Power Plant. An 826.57 MW (10 generating units of various capacities) captive power plant which is about 40 km from Renukoot, Sonebhadra district, Uttar Pradesh.[9]
  • Hirakud Captive Power Plant. A 467.5 MW captive power plant located at Hirakud, Sambalpur District, Odisha. This plant supplies power to Hirakud smelter of Hindalco Industries.[9]
  • Utkal Alumina Captive Power Plant. A 90 MW captive power plant located at Doraguda, Rayagada District, Odisha. This plant supplies power to Utkal Refinery of Hindalco Industries.[9]
  • Aditya Captive Power Plant. A 900 MW captive power plant located at Lapanga, Sambalpur District, Odisha. This plant supplies power to Aditya smelter of Hindalco Industries.
  • Mahan Hindalco Industries Ltd. a 900 MW captive power plant and alumina smelter located in Bargawa 20 km from Singrauli.

Novelis[]

On 11 February 2007, the company entered into an agreement to acquire the Canadian company Novelis for US$6 billion, making the combined entity the world's largest rolled-aluminium producer.[10] At 2007 Novelis was the world's largest producer of rolled aluminium and a major recycler of aluminium cans.[8] On 15 May 2007, the acquisition was completed with Novelis shareholders receiving $44.93 per outstanding share of common stock.

Hindalco, through its wholly owned subsidiary AV Metals Inc., acquired 75,415,536 common shares of Novelis, representing 100 percent of the issued and outstanding common shares. Immediately after closing, AV Metals Inc. transferred the common shares of Novelis to its wholly owned subsidiary AV Aluminum Inc. When Hindalco made this bid in 2007 this became the largest Indian investment in North America and the second-largest overseas investment by an Indian company (behind Tata Steel Europe's purchase of Corus two weeks earlier) to this time.[8]

The day after Hindalco announced the acquisition its stock fell by 13% resulting in a US$600 million drop in market capitalisation. Shareholders criticised the deal but K.M. Birla responded that he had offered a fair price for the company and stated, "When you are acquiring a world leader you will have to pay a premium."[8]

Other acquisitions[]

In June 2000, acquisition of controlling stake in Indian Aluminium Company Limited (Indal) with 74.6 per cent equity holding.[11]

In July 2007, Hindalco announced it is acquiring the stake of Alcan Inc.'s in the Utkal Alumina Project located in Doraguda, Odisha.

On 15 April 2020, Hindalco Industries acquired US-based Aluminium rolled products manufacturer Aleris Corporation. Hindalco's Novelis' entry into the high-end aerospace segment, this deal has been closed at an enterprise value of $2.8 billion.[12]

Listings and shareholding[]

The equity shares of Hindalco are listed on the Bombay Stock Exchange,[13] where it is a constituent of the BSE SENSEX index,[14] and the National Stock Exchange of India,[15] where it is a constituent of the S&P CNX Nifty.[16] Its Global depository receipts are listed on the Luxembourg Stock Exchange.

As on 30 June 2013, the promoters Aditya Birla Group held around 32% equity shares in Hindalco. Over 408,000 individual shareholders hold approx. 9% of its shares.[17]

See also[]

Grasim Industries

References[]

  1. ^ "About us | Overview". Hindalco. 19 August 2009. Retrieved 11 February 2011.
  2. ^ Jump up to: a b c d e "Hindalco Industries Ltd. Financial Statements". moneycontrol.com.
  3. ^ Jump up to: a b "Annual Report 2012–13" (PDF). Retrieved 29 December 2013.
  4. ^ "Businesses | Aluminium | Rolled products". Hindalco. 16 November 2007. Retrieved 28 September 2010.
  5. ^ "Hindalco Industries". Forbes. May 2013. Retrieved 28 December 2013.
  6. ^ "The World's Biggest Public Companies". Forbes. May 2013. Retrieved 28 December 2013.
  7. ^ "Hindalco to acquire Novelis for $6.0 Billion". Indiaprwire.com. Archived from the original on 30 December 2013. Retrieved 28 September 2010.
  8. ^ Jump up to: a b c d Kumar, Nirmalya (2009). India's Global Powerhouses. Harvard Business Press. pp. 107–120. ISBN 978-1-4221-4762-7.
  9. ^ Jump up to: a b c "Archived copy". Archived from the original on 26 March 2014. Retrieved 26 March 2014.CS1 maint: archived copy as title (link)
  10. ^ "http://www.prnewswire.com/ future-for-rolled-aluminum-products-industry". Norway: Prnewswire.com. Retrieved 28 September 2010. External link in |title= (help)
  11. ^ "Indian Aluminium Company Ltd". Financialexpress.com. 19 January 2003. Retrieved 28 September 2010.
  12. ^ Pandey, Piyush (14 April 2020). "Hindalco seals $2.8 billion Aleris deal". The Hindu. ISSN 0971-751X. Retrieved 14 April 2020.
  13. ^ "Stock Share Price Hindalco Industries Ltd". BSEindia.com. Retrieved 28 December 2013.
  14. ^ "Scripwise Weightages in S&P BSE SENSEX". BSE India. Retrieved 28 December 2013.
  15. ^ "Hindalco Industries Limited". NSE India. Retrieved 28 December 2013.
  16. ^ "Download List of CNX Nifty stocks (.csv)". NSE India. Retrieved 12 October 2013.
  17. ^ "Shareholding Pattern". Hindalco Industries. Retrieved 28 December 2013.

External links[]

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