HINDALCO INDUSTRIES LIMITED: Flagship company of Aditya Birla Group(1958).

Two trat!gic "usin!ss!s# annual r!$!nu! % &1' "illion. (arg!st int!grat!d aluminium produc!r. )an*s among top +uartil! of low cost produc!rs in th! world.

,o$!lis - .orld/s l!ading produc!r of aluminium-roll!d products with a 19 p!r c!nt glo"al mar*!t shar!. .orld l!ad!r in th! r!cycling of us!d aluminium "!$!rag! cans. ,o.1 in roll!d products produc!r in 0urop!# outh Am!rica and Asia. Faciliti!s to produc!s m!tal cans for 1!psi and 2o*!.

3n "usin!ss or !conomics a merger is a com"ination of two compani!s into on! larg!r company. uch actions ar! commonly $oluntary and in$ol$! stoc* swap or cash paym!nt to th! targ!t. toc* swap is oft!n us!d as it allows th! shar!hold!rs of th! two compani!s to shar! th! ris* in$ol$!d in th! d!al.

4ori5ontal 6!rg!rs 7!rtical 6!rg!rs 2onglom!rat! 6!rg!rs 2onc!ntric 6!rg!rs

1.

8.

Horizontal Mergers 2om"ination of two or mor! firms op!rating in th! sam! stag! of production. 7!rtical 6!rg!rs 2om"ination of two firms that op!rat! in diff!r!nt stag!s of production. - T!9til!s firm m!rg!s with raw mat!rials firm. Conglomerate Mergers 6!rg!r of firms in unr!lat!d lin!s of "usin!ss that ar! n!ith!r comp!titors nor pot!ntial or actual custom!rs or suppli!rs of !ach oth!r.

Example: General Electric buying NBC television

'. Con!entri! Mergers

6!rg!r of two firms that ar! so r!lat!d that th!r! is a carryo$!r of sp!cific manag!m!nt functions (r!s!arch# manufacturing# financ!# mar*!ting# !tc.)

Example: Pfizer and Wyeth merger (Pharmaceutical giants came together to share the R&D strengths)

An a!"#isition# also *nown as a ta$eo%er or a &#'o#t# is th! "uying of on! company (th! :targ!t/) "y anoth!r. An ac+uisition may "! fri!ndly or hostil!. 3n th! form!r cas!# th! compani!s coop!rat! in n!gotiations; in th! latt!r cas!# th! ta*!o$!r targ!t is unwilling to "! "ought or th! targ!t<s "oard has no prior *nowl!dg! of th! off!r. Ac+uisition usually r!f!rs to a purchas! of a small!r firm "y a larg!r on!.

INTRODUCTION:

Th! s!ri!s of ac+uisitions in m!tal industry was initiat!d "y ac+uisition of Arc!lor "y 6ittal follow!d "y 2orus "y Tata/s.

3ndian aluminium giant 4indalco !9t!nd!d this proc!ss "y ac+uiring Atlanta "as!d company ,o$!lis 3nc# a world l!ad!r in aluminium rolling and flat-roll!d aluminium products.

In!rease( mar$et )o*er Learning an( De%elo)ing ne* !a)a&ilities O%er!oming t+e ne* entrants into t+e in(#str'. Cost o, ne* )ro(#!t (e%elo)ment To a%oi( e-!essi%e !om)etition

All-cash transaction# % &=.> "illion# including appro9imat!ly % &8.' "illion of d!"t. Glo"al int!grat!d aluminium produc!r with lowcost alumina and aluminium production faciliti!s. Bigg!st roll!d aluminium products ma*!r and fifth -larg!st int!grat!d aluminium manufactur!r in th! world. Glo"ally position!d organi5ation

-Tata st!!l "uys 2orus 1lc ? 18.1& "illion. -@nly &'.1 "illion ATatas ( "alanc! as d!"t) -4indalco ac+uir!d no$!lis? =& "illion. -To "uy th! &B.= "illion worth of ,o$!lis/s !+uity# 4indalco "orrow!d almost &8.85 "illion (of th! "alanc!# &B>> million is "!ing rais!d as d!"t from group compani!s and &'5> million is "!ing mo"ilis!d from its cash r!s!r$!s.

4indalco will "! a"l! to ship primary aluminium from 3ndia and ma*! $alu!-add!d products. 4indalco m!tal is acc!pt!d und!r th! high-grad! aluminium contract on th! (60 as a r!gist!r!d "rand. 4indalco/s rational! for th! ac+uisition is incr!asing scal! of op!ration# !ntry into highC !nd downstr!am mar*!t and !nhancing glo"al pr!s!nc!(11 countri!s).

1ost ac+uisition# th! company will g!t a strong glo"al footprint. Th! d!al will gi$! 4indalco a strong pr!s!nc! in r!cycling of aluminium "usin!ss. D,o$!lis has a $!ry strong t!chnology for $alu! add!d products and its lat!st t!chnology :,o$!lis Fusion/ is $!ry uni+u! on!. As p!r company d!tails# th! r!plac!m!nt $alu! of th! ,o$!lis is % &18 "illion# so consid!ring th! tim! r!+uir!d and r!plac!m!nt $alu!; th! d!al is worth for 4indalco.

To conclud! th! achi!$!m!nts in th! fiinancial y!ar# th! company r!cord!d a comm!nda"l! p!rformanc! in an !9tr!m!ly difficult y!ar that witn!ss!d unpr!c!d!nt!d !$!nts in th! financial and commodity mar*!ts. This p!rformanc! is "!caus! of th! und!rlying str!ngth of "usin!ss op!rations E proF!ct manag!m!nt capa"iliti!s.

Annual r!port of 4indalco 8>>8->9 www.hindalco.com www.aditya"irla.com www.no$!lis.comG3nt!rn!tG!n% GA"out%sG4istoryG