HINDALCO INDUSTRIES LIMITED: ‡ Flagship company of Aditya Birla Group(1958). ‡ ‡ ‡ . annual revenue US $14 billion. Two Strategic businesses. Ranks among top quartile of low cost producers in the world. Largest integrated aluminium producer.

South America and Asia. . World leader in the recycling of used aluminium beverage cans.1 in rolled products producer in Europe. Facilities to produces metal cans for Pepsi and Coke.World·s leading producer of aluminium-rolled products with a 19 per cent global market share. No.Š Š Š Š Novelis .

the takeover target is unwilling to be bought or the target's board has no prior knowledge of the offer. is the buying of one company (the ¶target·) by another. ƒ An acquisition may be friendly or hostile. ƒ Acquisition usually refers to a purchase of a smaller firm by a larger one. the companies cooperate in negotiations. in the latter case. ƒ . ƒ In the former case.An acquisition. also known as a takeover or a buyout.

a world leader in aluminium rolling and flat-rolled aluminium products.INTRODUCTION: ‡ The series of acquisitions in metal industry was initiated by acquisition of Arcelor by Mittal followed by Corus by Tata·s. ‡ Indian aluminium giant Hindalco extended this process by acquiring Atlanta based company Novelis Inc. .

Cost of new product development To avoid excessive competition .Š Š Š Š Š Increased market power Learning and Developing new capabilities Overcoming the new entrants into the industry.

 All-cash transaction. Globally positioned organization    .0 billion. US $6. Biggest rolled aluminium products maker and fifth -largest integrated aluminium manufacturer in the world.4 billion of debt. including approximately US $2. Global integrated aluminium producer with lowcost alumina and aluminium production facilities.

-To buy the $3. -Only $4.-Tata steel buys Corus Plc : 12.1$ billion.85 billion (of the balance.1 billion ²Tatas ( balance as debt) -Hindalco acquired novelis: 6$ billion.6 billion worth of Novelis·s equity. $300 million is being raised as debt from group companies and $450 million is being mobilised from its cash reserves. Hindalco borrowed almost $2. .

Š Hindalco will be able to ship primary aluminium from India and make value-added products. entry into high³end downstream market and enhancing global presence(11 countries). Hindalco·s rationale for the acquisition is increasing scale of operation. Š Š . Hindalco metal is accepted under the high-grade aluminium contract on the LME as a registered brand.

the company will get a strong global footprint. As per company details. so considering the time required and replacement value. the deal is worth for Hindalco. The deal will give Hindalco a strong presence in recycling of aluminium business. Novelis has a very strong technology for value added products and its latest technology ¶Novelis Fusion· is very unique one.Š Post acquisition. the replacement value of the Novelis is US $12 billion. Š Š Š .

To conclude the achievements in the fiinancial year. This performance is because of the underlying strength of business operations & project management capabilities. . the company recorded a commendable performance in an extremely difficult year that witnessed unprecedented events in the financial and commodity markets.

com www.adityabirla.hindalco.com/Internet/enUS/AboutUs/History/ .novelis.com www.Š Š Š Š Annual report of Hindalco 2008-09 www.

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