MUMBAI: Hindalco Industries Ltd, the flagship metals company of the Aditya Birla Group, on Wednesday announced the acquisition of 100% stake in Ryker Base Pvt. Ltd, a wholly-owned subsidiary of Polycab India Ltd. The acquisition will be done through Hindalco’s wholly-owned subsidiary Renuka Investments & Finance Ltd, the company said.
The purchase consideration for the equity stake is based on an enterprise value of ₹323 crore, subject to customary adjustments for working capital and net debt as on the date of closing.
Ryker’s 225,000-tonne plant for manufacturing cast and rolled copper wire rods is located at Waghodia, Gujarat. 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 tonne.
The acquisition will strengthen Hindalco’s copper rod manufacturing capacity by providing a time-to-market advantage, allowing the company to cater to the growing demand from electrical and electronics sectors.
Satish Pai, managing director, Hindalco Industries, said, “Hindalco’s copper is a vital input into India’s accelerating journey on electrification, urbanisation, renewables and e-mobility. Keeping the needs of the nation and industry in mind, Hindalco has taken the step to expand its capacity.”
“The acquisition takes forward Hindalco’s downstream strategy. We had recently announced two projects – a greenfield aluminium extrusions plant in Silvassa, and a flat-rolled products facility in Hirakud – aimed at enhancing our product mix towards more value-added products. The Ryker deal will further enrich our portfolio of downstream products,” he added.
Ryker’s copper wire rods facility uses German technology, consumes less energy and is significantly lower on carbon emissions, Hindalco said, adding that the plant is well aligned with its ESG focus.
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