Building on a solid foundation, Novelis today is a leaner and more nimble entity. It is perhaps the only pure play focussed, aluminium rolled products global company.
Kumar Mangalam Birla Chairman, Hindalco
Hindalco Industries Limited, the metals flagship of the Aditya Birla Group, is the worlds largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia. Its copper smelter is the worlds largest custom smelter at a single location. The acquisition of Novelis Inc., a global leader in aluminium rolled products and beverage can recycling, in 2007, positioned Hindalco among the top five aluminium majors worldwide and the largest vertically integrated aluminium company in India.
Hindalco acquired Novelis, a company three times its size, for $6 billion by paying $3.5 billion in cash and taking on $2.5 billion of its debt. In the third quarter of the financial year 2010-11, Novelis completed refinancing transactions to recapitalise its balance sheet, and the proceeds were used to refinance Novelis prior secured term loan credit facility, and to fund its previously announced cash tender offers. Hindalco believes the refinancing provides it as well as Novelis increased flexibility to address growth opportunities in order to further strengthen their global footprint.
At the 51st AGM of the company, Kumar Mangalam Birla, chairman, Hindalco, said, Building on a solid foundation, Novelis today is a leaner and more nimble entity. It is perhaps the only pure play focused, aluminium rolled products global company.
For the third quarter ended December 31, 2010, Hindalco reported a growth of 7.78% in net profit to Rs 460.34 crore, against Rs 427.10 crore in the corresponding quarter last year. The net sales during the quarter stood at Rs 5,917.85 crore, up 11.98% as compared to Rs 5,284.41 crore in Q3 FY2010. Growth in net sales was driven by better geographic mix and improved realisation, despite lower metal volumes.
The company is planning a spate of expansions to augment capacity. Expansion at Hindalcos Hirakud smelter from 155 ktpa to 161 ktpa is nearing completion and will soon be taken on the production line.
Further expansion from 161 ktpa to 213 ktpa, along with a 100 mw captive power plant will be completed in Q4 FY12. Evaluation for yet another expansion of the smelter to 360 ktpa is underway. The Hirakud flat rolled products project is also underway.
The production of value-added special alumina at the Belgaum