The acquisition will strengthen Hindalco’s copper rod capacity along with providing the “time-to-market” advantage.
November 11, 2021
Aditya Birla Group-owned Hindalco Industries has announced to acquire 100 percent equity in Polycab India’s wholly-owned subsidiary – Ryker Base for an enterprise value of INR 323 crore. In a regulatory filing submitted by Hindalco, the purchase consideration could come to around INR 167 crore. The transaction is expected to be concluded on or before December 31, 2021.
According to the stated terms of the transaction, Hindalco’s wholly-owned subsidiary, Renuka investments and Finance are going to acquire a 100 percent equity stake in Ryker Base
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As per the statement issued, the proposed acquisition is projected to strengthen the copper rod manufacturing capacity of Hindalco Industries. This will be “providing a time-to-market advantage allowing the Company to cater to the growing demand from electrical and electronic sectors.”
Ryker Base has a sprawling state-of-the-art plant for manufacturing cast and rolled copper wire rods with a production capacity of 225,000 tonne located at Waghodia in Gujarat. On the other hand, Hindalco Industries has one of the world’s largest single-location custom Copper Smelters at Dahej in Gujarat, with a production capacity of 345,000 tonne of copper rods.
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Some time ago, Hindalco had announced two projects – a Greenfield aluminium extrusion plant in Silvassa, and a flat-rolled product facility in Hirakud. These expansion projects aim to enhance the product mix towards incorporating more value-added products. The production facility of Ryker Base utilises advanced German technology which enables reduced consumption of energy and lower carbon emissions.
