Hindalco Industries - Focus On Downstream Remains Key To Value Creation: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Hindalco Industries Ltd.’s decision to acquire Hydro's aluminium extrusions business in India (Kuppam in Andhra Pradesh) for Rs 2.5 billion falls within the envelope of Hindalco’s ‘doubling the downstream’ strategy wherein the company has entailed a capex of $1.1 billion. The plant will also serve as an archetype for Hindalco's upcoming extrusions plant in Silvassa (Rs 7.3 billion capex for 34 kilo tonnes per annum greenfield plant). Once commissioned, the Kuppam and Silvassa units are expected to boost Hindalco's total aluminium extrusions capacity from 60 ktpa to 109 ktpa. The transaction is expected to close by Q1 CY22. Sales in extrusion market is driven by dealer network, differentiated by quick turnaround and increasing stock keeping units, and customers prefer distributed setup closer to demand footprint. This, in our view, will be a deviation from the current means of doing business in Hindalco..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Hindalco Industries - Focus On Downstream Remains Key To Value Creation: ICICI Securities

Hindalco Industries - Focus On Downstream Remains Key To Value Creation: ICICI Securities

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