New Delhi, June 25 -- Hindalco Industries Ltd, the metals flagship of the Aditya Birla Group, has announced the acquisition of a 100% equity stake in US-based AluChem Companies, a manufacturer of specialty alumina, for an enterprise value of $125 million (Rs 1,073 crore), according to an exchange filing.
The acquisition will be executed via Aditya Holdings LLC, Hindalco's step-down wholly-owned subsidiary.
Founded over 45 years ago, AluChem is a North America-based producer of specialty alumina, with a product portfolio that includes calcined, reactive, and tabular alumina-materials used in high-performance applications such as refractories, ceramics, and electronics.
Hindalco's specialty alumina business, a major segment of its value-added portfolio, has recorded double-digit growth in recent years and is one of the company's high-margin business verticals. The acquisition comes amid rising demand for specialty alumina across sectors like electric mobility, semiconductors, and precision ceramics.
AluChem recorded revenues of $66.4 million, $62.8 million, and $68.4 million in CY24, CY23, and CY22, respectively, according to the exchange filing.
"As alumina gains relevance in critical and clean-tech sectors, AluChem's advanced chemistry capabilities will enhance our ability to serve these fast-evolving markets," said Satish Pai, managing director of Hindalco Industries. "It deepens our high value-added portfolio with differentiated products."
The deal will give Hindalco access to a large market in North America, with AluChem operating an annual capacity of 60,000 tonnes across three manufacturing facilities in Ohio and Arkansas. The company is an established supplier of ultra-low soda calcined and tabular alumina-materials known for high thermal and mechanical stability.
Globally, the specialty alumina market is projected to record consistent growth, driven by rising demand in sectors such as ceramics, electronics, aerospace, and medical applications. Hindalco currently operates 500,000 tonnes of specialty alumina capacity, and aims to scale this to 1 million tonnes by FY30.
The transaction is expected to close in the next quarter, subject to regulatory approvals.
Hindalco, a $28-billion enterprise, is the world's largest aluminium company by revenue. With operations in 10 countries and 52 manufacturing locations, it is a fully integrated player-from mining to finished products. It also manufactures flat-rolled aluminium products through its subsidiary Novelis.
Published by HT Digital Content Services with permission from VC Circle.