Hindalco Industries

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Hindalco Industries Limited
Company type Public
BSE:  500440
NSE:  HINDALCO
NSE NIFTY 50 Constituent
ISIN INE038A01020
Industry Metals
Founded1958;66 years ago (1958) [1]
Headquarters Mumbai, Maharashtra India
Area served
Worldwide
Key people
ProductsAluminium and copper products
RevenueIncrease2.svg₹224,459 crore (US$28 billion) (2023) [2]
Decrease2.svg₹22,666 crore (US$2.8 billion) (2023) [3]
Decrease2.svg₹10,097 crore (US$1.3 billion) (2023) [2]
Total assets Increase2.svg₹224,817 crore (US$28 billion) (2023) [2]
Total equity Increase2.svg₹94,817 crore (US$12 billion) (2023) [2]
Number of employees
~76,800+(Including 54,066 of India Operations) (2023) [4]
Parent Aditya Birla Group
Subsidiaries Novelis
Aleris
Website www.hindalco.com

Hindalco Industries Limited an Indian aluminium and copper manufacturing company, is a subsidiary of the Aditya Birla Group. [5] Its headquarters are at Mumbai, Maharashtra, India.

Contents

The company is listed in the Forbes Global 2000 (2023) at 661st rank. [6] Its market capitalisation by the end of November 2023 was US$15.6 billion. [7]

History

The Hindustan Aluminium 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 and 40 thousand metric tons per year of alumina. In 1989 the company was restructured and renamed Hindalco. [8] Ramdev Singh was the first trade union leader of Hindalco Industries Limited, Renukoot. [9]

Operations

Power plants

Novelis

On 11 February 2007, the company entered into an agreement to acquire the American company Novelis for US$6 billion, making the combined entity the world's largest rolled-aluminium producer. [11] [ better source needed ] 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.

Novelis operates as an independent subsidiary with its own leadership team and remains headquartered in Atlanta, Georgia. It is incorporated in Delaware.

Hindalco, through its wholly owned subsidiary AV Metals Inc., acquired 75,415,536 common shares of Novelis, representing 100 per cent 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 Kumar Mangalam 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. [12]

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

On 15 April 2020, Novelis 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. [13]

On 6 February 2024, Hindalco announced it is acquiring 26% stake in Ayana Renewable Power Four (ARPFPL) for a value of Rs 1.62 crore. Hindalco will operate a captive power generation plant for supplying 100 MW Renewable energy to Hindalcos smelter in Odisha. [14]

Listings and shareholding

The equity shares of Hindalco are listed on the Bombay Stock Exchange, [15] where it is a constituent of the BSE SENSEX index, [16] and the National Stock Exchange of India, [17] where it is a constituent of the S&P CNX Nifty. [18] Its Global depository receipts are listed on the Luxembourg Stock Exchange.

As on 31 March 2022, the promoters Aditya Birla Group held around 34.64% equity shares in Hindalco. Over 408,000 individual shareholders hold approx. 9% of its shares. [19]

See also

Related Research Articles

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References

  1. ↑ "About us | Overview". Hindalco. 19 August 2009. Retrieved 11 February 2011.
  2. 1 2 3 4 "Hindalco Industries Ltd. Financial Statements" (PDF). www.bseindia.com.
  3. ↑ "Hindalco Q4FY23 results" (PDF).
  4. ↑ "Annual Report 2022-23" (PDF). Retrieved 23 December 2023.
  5. ↑ "Businesses | Aluminium | Rolled products". Hindalco. 16 November 2007. Retrieved 28 September 2010.
  6. ↑ "Hindalco Industries". Forbes. May 2013. Retrieved 28 December 2013.
  7. ↑ "The World's Biggest Public Companies". Forbes. May 2013. Retrieved 28 December 2013.
  8. 1 2 3 4 Kumar, Nirmalya (2009). India's Global Powerhouses . Harvard Business Press. pp. 107–120. ISBN   978-1-4221-4762-7.
  9. ↑ "Labour Day 2022: संघर्ष की मिसाल थे मजदूर नेता बाबू रामदेव सिंह, मजदूर दिवस पर जानिए उनकी प्रेरणाप्रद कहानी". May 2022.
  10. 1 2 3 "Operations | Power | Hindalco.com". Archived from the original on 26 March 2014. Retrieved 26 March 2014.
  11. ↑ "Aleris acquisition makes Hindalco world's largest aluminium products firm". The Economic Times. 15 April 2020.
  12. ↑ "Indian Aluminium Company Ltd". Financialexpress.com. 19 January 2003. Retrieved 28 September 2010.
  13. ↑ Pandey, Piyush (14 April 2020). "Hindalco seals $2.8 billion Aleris deal". The Hindu. ISSN   0971-751X . Retrieved 14 April 2020.
  14. ↑ Grover, Chitrika (6 February 2024). "Hindalco Inds Contracts For Renewable Energy From 100 MW Ayana Renewable Project". Saur Energy International. Retrieved 6 February 2024.
  15. ↑ "Stock Share Price Hindalco Industries Ltd". BSEindia.com. Retrieved 28 December 2013.
  16. ↑ "Scripwise Weightages in S&P BSE SENSEX". BSE India. Retrieved 28 December 2013.
  17. ↑ "Hindalco Industries Limited". NSE India. Retrieved 28 December 2013.
  18. ↑ "Download List of CNX Nifty stocks (.csv)". NSE India. Retrieved 12 October 2013.
  19. ↑ http://www.hindalco.com/upload/pdf/shareholding-pattern-september-2021.pdf.{{cite web}}: Missing or empty |title= (help)
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