Hindalco Industries Ltd. has acquired a Polycab India Ltd. subsidiary as the billionaire Kumar Mangalam Birla-controlled company aims to strengthen its copper rod manufacturing capacity, allowing it to cater to the growing demand from electrical and electronics sectors.
The 100% acquisition of Ryker Base Pvt. will be through Hindalco's wholly owned subsidiary Renuka Investments & Finance Ltd. for an enterprise value of Rs 323 crore, according to an exchange filing. The deal is subject to customary adjustments for working capital and net debt as on the date of closing.
Ryker has a 225,000-tonne plant for manufacturing cast, rolled copper wire rods located at Gujarat.
According to Satish Pai, managing director at Hindalco Industries, the deal is a “step forward towards Hindalco's downstream strategy”.
The company, he said in the filing, has 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.”
Shares of Hindalco closed 2.32% higher on Wednesday compared with a 0.33% decline in the Nifty 50.
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