Hindalco Industries
Encyclopedia
Hindalco Industries Ltd. is one of the world's largest Aluminium manufacturing company and is a subsidiary of the Aditya Birla Group
. It is run by one of the world's youngest billionaires, Mr. K.M. Birla
.
in Uttar Pradesh
making 20,000 million metric tons per year of aluminum metal and 40,000 million metric tons per year of alumina. In 1989 the company was restructured and renamed Hindalco.
for U$6 billion, making the combined entity the world's largest rolled-aluminium producer. At 2007 Novelis was the world's largest producer of rolled aluminum and a major recycler of aluminum cans. On May 15, 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.
The day after Hindalco announced the acquisition its stock fell by 13% resulting in a USD $600 million drop in market capitalization. Shareholders criticized 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."
Inc.'s in the Utkal Alumina Project located in Orissa.
In June 2000, acquisition of controlling stake in Indian Aluminium Company Limited (Indal) with 74.6 per cent equity holding.
Aditya Birla Group
The Aditya Birla Group is an Indian multinational conglomerate corporation headquartered in Mumbai, India. It operates in 33 countries with more than 133,000 employees worldwide...
. It is run by one of the world's youngest billionaires, Mr. K.M. Birla
Kumar Mangalam Birla
Kumar Mangalam Birla is an Indian industrialist and the Chairman of the Aditya Birla Group, one of the largest conglomerate corporations in India. He is also the Chancellor of the Birla Institute of Technology & Science.-Education and career:...
.
Financial information
The company has annual sales of $ 5 billion and employs 13,675 people and is listed on Forbes 2000. A metals powerhouse with a turnover of US$ 14 billion, Hindalco is one of the world's largest aluminium rolling companies and one of the biggest producers of primary aluminium in Asia.History
The Hindustan Aluminum Corporation Limited was established in 1958 by the Aditya Birla Group. In 1962 the company began production in RenukootRenukoot
Renukoot is a town and a nagar panchayat in Sonbhadra district in the Indian state of Uttar Pradesh.-Geography:Renukoot is located at . It has an average elevation of 283 metres...
in Uttar Pradesh
Uttar Pradesh
Uttar Pradesh abbreviation U.P. , is a state located in the northern part of India. With a population of over 200 million people, it is India's most populous state, as well as the world's most populous sub-national entity...
making 20,000 million metric tons per year of aluminum metal and 40,000 million metric tons per year of alumina. In 1989 the company was restructured and renamed Hindalco.
Novelis acquisition
On February 11, 2007, the company entered into an agreement to acquire the Canadian company NovelisNovelis
Novelis Inc. is a global aluminum company. Headquartered in Atlanta, Georgia, Novelis produces 17 percent of the world’s flat-rolled aluminum products and is the global leader in recycling used beverage cans....
for U$6 billion, making the combined entity the world's largest rolled-aluminium producer. At 2007 Novelis was the world's largest producer of rolled aluminum and a major recycler of aluminum cans. On May 15, 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
Tata Steel Europe
Tata Steel Europe is a multinational steel-making company headquartered in London, United Kingdom. It is the second-largest steel-maker in Europe and is a subsidiary of Tata Steel of India, one of the ten largest steel producers in the world.Corus Group was formed through the merger of Koninklijke...
's purchase of Corus two weeks earlier) to this time.
The day after Hindalco announced the acquisition its stock fell by 13% resulting in a USD $600 million drop in market capitalization. Shareholders criticized 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."
Other acquisitions and takeovers
In July 2007, Hindalco announced it is acquiring the stake of AlcanAlcan
Rio Tinto Alcan Inc. is a Canadian company based in Montreal. It was created on November 15, 2007 as the result of the merger between Rio Tinto PLC's Canadian subsidiary, Rio Tinto Canada Holding Inc., and Canadian company Alcan Inc. On the same date, Alcan Inc. was renamed Rio Tinto Alcan Inc..Rio...
Inc.'s in the Utkal Alumina Project located in Orissa.
In June 2000, acquisition of controlling stake in Indian Aluminium Company Limited (Indal) with 74.6 per cent equity holding.