Hindalco Industries acquires Ryker Base for enterprise value of Rs 323 cr

Hindalco Industries Limited on Wednesday announced the acquisition of Ryker Base Pvt Ltd, a wholly-owned subsidiary of Polycab India Limited, for an enterprise value of Rs 323 crore.

The acquisition will be through Hindalco’s wholly-owned subsidiary Renuka Investments & Finance Ltd, with a purchase consideration for 100 percent equity stake, subject to customary adjustments for working capital and net debt as on the date of closing, Hindalco said in its release today.

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.

Ryker’s 225,000 tonne plant for manufacturing cast and rolled copper wire rods is located at Waghodia (Gujarat), while 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.

“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 release quoted Satish Pai, managing director at Hindalco Industries as saying.

The acquisition takes forward Hindalco’s downstream strategy as the company recently announced two projects – a greenfield aluminium extrusions plant in Silvassa, and a flat-rolled products facility in Hirakud – aimed at enhancing product mix towards more value-added products. The Ryker deal will further enrich our portfolio of downstream products.

Ryker’s copper wire rods facility uses German technology, consumes less energy and is significantly lower on carbon emissions. The plant is well aligned with Hindalco’s ESG focus, said the Aditya Birla Group company.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor