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Hindalco Industries agrees to acquire copper rod subsidiary of Polycab India

1/4/2022 – Hindalco Industries Ltd., the metals flagship firm of Aditya Birla Group, has agreed to acquire Ryker Base Pvt. Ltd. (RBPL), a subsidiary of Polycab India Ltd.

A report in the Business Standard said that the purchase was to be based on an enterprise value of ₹323 crore (about US$46.8 million). Hindalco operates one of the world’s largest single-location custom copper smelters at Dahej in Gujarat, with a copper rod capacity of 345,000 metric-tons per year (mtpy). The deal will strengthen Hindalco’s copper rod manufacturing capacity, allowing it to cater to growing demand from the electrical and electronics sectors.

Per the RBPL website, the company’s plant in Waghodia, Gujarat, has a gas-controlled shaft furnace, a modular Hazelett twin-belt caster, a caster station and a rolling mill with 12 individually driven roll stands, followed by a cooling section, a coiler and coil handling facility for automatic compacting, strapping and packing of the finished wire rod coils with a casting capacity of 35 t/h and annual installed production of 225,000 mtpy.

“Hindalco’s copper is a vital input to India’s accelerating journey on electrification, urbanization, renewables and e-mobility,” said Hindalco Industries Managing Director Satish Pai. “Keeping the needs of the nation and industry in mind, Hindalco has taken the step to expand its capacity.” He added that the plant is well aligned with its environmental, social and governance strategy.

The acquisition, the story said, forwards Hindalco’s downstream strategy. The company has previously announced two projects: an aluminum extrusion in Silvassa, and a flat-rolled products facility in Hirakud. “The Ryker deal will further enrich our portfolio of downstream products,” said Pai.

Read 684 times Last modified on January 4, 2022