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
RevenueDecrease2.svg₹217,458 crore (US$26 billion) (2024) [2]
Increase2.svg₹22,666 crore (US$2.7 billion) (2024) [3]
Increase2.svg₹10,155 crore (US$1.2 billion) (2024) [2]
Total assets Increase2.svg₹231,907 crore (US$28 billion) (2024) [2]
Total equity Increase2.svg₹106,157 crore (US$13 billion) (2024) [2]
Number of employees
~71,200+(Including 57,669 of India Operations) (2024) [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

Rio Tinto Alcan is a Canada-based mining company. Headquartered in Montreal, Quebec, it is a subsidiary of global mining conglomerate Rio Tinto. It was created on 15 November 2007 as the result of the merger between Rio Tinto's Canadian subsidiary and Canadian company Alcan.

Vedanta Limited is an Indian multinational mining company headquartered in Mumbai, with its main operations in iron ore, gold and aluminium mines in Goa, Karnataka, Rajasthan and Odisha.

<span class="mw-page-title-main">Aditya Birla Group</span> Indian multinational conglomerate

Aditya Birla Group is an Indian multinational conglomerate, headquartered in Mumbai, India. The group's business interests include metals, cement, fashion and retail, financial services, renewables, fibre, textiles, chemicals, real estate, trading, mining, and entertainment. The group has a presence in 36 nations and a combined annual revenue of US$75 billion, over 50% of which is derived from its overseas operations.

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National Aluminium Company Limited is an Indian public sector company having integrated and diversified operations in mining, metal and power. Presently, the Government of India holds a 51.28% equity stake in NALCO, while the Ministry of Mines has administrative control over the company.

<span class="mw-page-title-main">Hirakud</span> Town in Odisha, India

Hirakud is a small township located in Sambalpur in Odisha. It was a Notified Area Council (NAC) which was later included along with Burla in Sambalpur city to become a Municipal Corporation. This city is a hub of HINDALCO, an Indian aluminium and copper manufacturing company. Hirakud Dam, is one of the most visited tourist spot. It is one of the longest and largest dams in the world. It is constructed across the Mahanadi river between the Gandhi Minar in North and the Nehru Minar in the South, which connects these two hills. The shoreline spans around 640 km. This dam had a generating capacity of 290MW.

<span class="mw-page-title-main">Kumar Mangalam Birla</span> Indian industrialist and philanthropist (born 1967)

Kumar Mangalam Birla is an Indian billionaire industrialist, philanthropist, and the chairman of the Aditya Birla Group, one of the largest conglomerates in India. He is the chancellor of the Birla Institute of Technology & Science, Pilani and ex-chairman of Indian Institute of Management Ahmedabad. According to Forbes, he has an estimated net worth of US$23 billion, as of March 2024 making him the 6th richest person in India.

<span class="mw-page-title-main">Novelis</span> Industrial aluminum company based in Atlanta, Georgia

Novelis Inc. is an American industrial aluminum company, headquartered in Atlanta, Georgia, United States. It is an independent subsidiary of multinational aluminium and copper manufacturing company Hindalco Industries. Novelis is a producer of rolled aluminum and an aluminum recycler. The company serves customers in sectors including beverage cans, automotive, aerospace, consumer electronics, construction, foil and packaging.

<span class="mw-page-title-main">Renukoot</span> Village in Uttar Pradesh, India

Renukoot is a town and a nagar panchayat in Sonbhadra district in the Indian state of Uttar Pradesh. It is 68 km south from the district headquarters Robertsganj.

VISA Steel Limited is a mineral and metals company situated in the Kalinganagar industrial complex of Jajpur Odisha, India with a 1.5 million ton integrated special and stainless steel manufacturing plant. VISA Steel has its registered office in Bhubaneswar, corporate office in Kolkata and branch offices across India. A listed company, VISA Steel's shares are traded on the BSE and NSE.

<span class="mw-page-title-main">Aleris</span> American companies

Aleris Corporation was an American aluminum rolled products producer, based in Beachwood, Ohio. The company had approximately 5,000 employees globally as of mid 2015.

Renusagar is a town situated in the south of Sonbhadra, Uttar Pradesh, India. Renusagar is the home of Renusagar Power Plant, a 700 MW captive power plant which supplies electricity to Hindalco Industries' operations in Renukoot. The rest of the town is mostly a middle class residential community, managed by the Civic Authority of Hindalco.

<span class="mw-page-title-main">NTPC Limited</span> National Thermal Power Corporation, Central Public Sector Undertaking coal mining

NTPC Limited, formerly known as National Thermal Power Corporation, is an Indian central Public Sector Undertaking (PSU) under the ownership of the Ministry of Power and the Government of India, who is engaged in the generation of electricity and other activities. The headquarters of the PSU are situated at New Delhi. NTPC's core function is the generation and distribution of electricity to State Electricity Boards in India. The body also undertakes consultancy and turnkey project contracts that involve engineering, project management, construction management, and operation and management of power plants.

Tikiri is a village in Rayagada district of Orissa state in India. Tikiri is a small Industrial town located in Rayagada District in the State of Odisha. It is 50 kilometers away from Rayagada District Headquarter and 80 kilometers away from Koraput District Head quarter. It is 20 kilometers away from Rupkona Junction. It is approachable by NH 326A till Rupkona and subsequently diverting another 20 kilometers in Rupkona –Kashipur State Highway. Being situated at high sea-level, it almost brings pleasant climate throughout the year and the summer days are not that much hot like other parts of Odisha. Utkal Alumina International Limited – a flagship of Hindalco group is situated at Tikiri. Utkal Alumina is an Alumina Refinery of capacity 2 MTPA with its bauxite mine at Rayagada/Kalahandi District. Tikiri is basically a Panchyat, having its Panhayat Samiti at Kashipur (20 kilometers away from Tikiri towards Kalahandi District. It has population of five thousands including local and employees working in Refinery plant.

<span class="mw-page-title-main">Jharsuguda–Vizianagaram line</span> Railway line in India

The Jharsuguda–Vizianagaram line is a railway line in eastern India. It connects Jharsuguda,516 km (321 mi) from Howrah on the Howrah–Nagpur–Mumbai line, and Titlagarh, which in turn is connected with Vizianagaram, 820 km (510 mi) from Howrah on the Howrah–Chennai main line, and Raipur Junction, 830 km (516 mi) from Howrah on the Howrah–Nagpur–Mumbai line. There are several branch lines, like the 176 km (109 mi) line connecting Rayagada with Koraput on the Kothavalasa–Kirandul line. The line traverses Western Odisha and connects the Howrah–Nagpur–Mumbai line with the Howrah–Chennai main line. It covers small portions of Chhattisgarh and Andhra Pradesh.

Vedanta Jharsuguda Power Station is a coal based thermal captive power plant located near Jharsuguda town in Jharsuguda district in the Indian state of Odisha. The power plant was commissioned in July 2008, and is operated by Vedanta Resources. It supplies power to aluminum smelter of Vedanta Resources.

Renusagar Power Plant is a coal based captive thermal power plant located near Renukoot in Sonbhadra district in the Indian state of Uttar Pradesh. The power plant is operated by the Hindalco Industries and gives power to the smelter, Renukoot for production of aluminium.

Hirakud Power Plant is a coal based captive thermal power plant located near Hirakud in Sambalpur district in the Indian state of Odisha. The power plant began commercial production in April 2013, is operated by the Hindalco Industries. The plant supplies power to Hirakud smelter of Hindalco Industries. The coal for the plant is sourced from Talabira captive coal mines.

Aditya Captive Power Plant is a captive 900 megawatt power project located at Lapanga, Sambalpur District Odisha which is part of Hindalco's Smelter_power project in Odisha. It has captive coal from Talabira-2 coal block a JV between Mahanadi Coalfields and Neyveli Lignite Corporation.

Bagru is a village in the Kisko CD block in the Lohardaga Sadar subdivision of the Lohardaga district in the Indian state of Jharkhand.

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 Q4FY24 results" (PDF).
  4. ↑ "Annual Report 2023-24" (PDF). Retrieved 30 July 2024.
  5. ↑ "Businesses | Aluminium | Rolled products". Hindalco. 16 November 2007. Archived from the original on 23 October 2010. 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. Archived from the original on 1 December 2015. 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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