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Hindalco to buy Polycab’s copper wire rod biz

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. (File Photo: Bloomberg) Premium
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. (File Photo: Bloomberg) 

  • 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

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MUMBAI : Hindalco Industries Ltd, the metals flagship firm of Aditya Birla Group, is set to acquire a 100% stake in Ryker Base Pvt. Ltd, a wholly-owned subsidiary of Polycab India Ltd, the company said  on Wednesday. 

The acquisition will be done through Renuka Investments and Finance Ltd, Hindalco’s wholly owned subsidiary.

The purchase of the equity stake will be based on an enterprise value of 323 crore, subject to customary working capital and net debt adjustments on the date of closing.

Ryker’s 225,000-tonne manufacturing facility for 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 tonnes. The deal will strengthen Hindalco’s copper rod manufacturing capacity, allowing it to cater to growing demand from the electrical and electronics sectors.

“Hindalco’s copper is a vital input to India’s accelerating journey on electrification, urbanization, renewables and e-mobility. Keeping the needs of the nation and industry in mind, Hindalco has taken the step to expand its capacity," Hindalco Industries’ managing director Satish Pai said.

“The acquisition takes forward Hindalco’s downstream strategy. We have 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." 

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 environmental, social and governance strategy.

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