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Hindalco to Acquire US-Based AluChem for $125 Million to Strengthen Specialty Alumina Portfolio
business update, Market News - July 2, 2025

Hindalco to Acquire US-Based AluChem for $125 Million to Strengthen Specialty Alumina Portfolio

Hindalco to Acquire US-Based AluChem for $125 Million to Strengthen Specialty Alumina Portfolio

In a strategic move to expand its global presence and enhance its specialty materials portfolio, Hindalco Industries Ltd., the metals flagship company of the Aditya Birla Group, announced that it will acquire AluChem LLC, a United States-based specialty alumina manufacturer, for $125 million (approximately ₹1,073 crore). The acquisition will be carried out through Hindalco’s wholly owned US subsidiary, Aditya Birla Holdings Inc., and is expected to be finalized within the next 2–4 months, subject to regulatory approvals.

This deal marks Hindalco’s third major acquisition in the US following its high-profile purchases of Novelis in 2007 and Aleris in 2020, further strengthening its international footprint and reinforcing its long-term commitment to value-added and sustainable materials.

Strategic Rationale Behind the Deal

The acquisition of AluChem aligns with Hindalco’s long-term strategy to become a global leader in the production of high-margin, niche products such as specialty alumina. Specialty alumina is a key input material used across various high-growth sectors including electric vehicles (EVs), semiconductors, aerospace, ceramics, refractories, and medical technologies.

AluChem operates three manufacturing facilities located in Ohio and Arkansas, USA, with a combined capacity of approximately 60,000 tonnes per annum (TPA) of specialty alumina. With this addition, Hindalco’s total specialty alumina capacity will expand to over 560,000 TPA, putting it well on course to achieving its ambitious goal of reaching 1 million TPA by FY30.

This move comes at a time when global demand for specialty alumina is rising rapidly due to the increasing adoption of electric mobility, clean energy technologies, and high-performance materials.

Financial Metrics and Profitability

AluChem generated approximately $66 million in revenue in 2024, with an impressive EBITDA of $381 per tonne. This is significantly higher than Hindalco’s current specialty alumina EBITDA, which stands around $200 per tonne. This differential suggests strong potential for margin accretion and earnings enhancement following the integration of AluChem into Hindalco’s portfolio.

The all-cash acquisition is expected to be funded through internal accruals and will not significantly impact Hindalco’s leverage ratios. The company has consistently maintained a prudent capital allocation approach, and this acquisition falls well within its strategic framework.

Strengthening Global Presence and Capabilities

Beyond financial synergies, the acquisition provides Hindalco with deeper access to the North American market, especially in ultra-low soda and tabular aluminas, where AluChem holds a significant market position. These products are crucial for applications demanding high purity, thermal stability, and chemical resistance.

Hindalco’s management emphasized that AluChem’s addition will bolster its product mix, enhance technological capabilities, and create opportunities for downstream innovation in advanced material applications.

According to Kumar Mangalam Birla, Chairman of Aditya Birla Group, this acquisition is another step in transforming Hindalco into a global leader in sophisticated, technology-driven materials, moving beyond the traditional commodities business.

Satish Pai, Managing Director of Hindalco Industries, stated that the acquisition is a “natural fit” for the company’s specialty alumina business and provides a platform to deliver value-added solutions to global customers.

Investor Sentiment and Market Response

The market reacted positively to the announcement. Hindalco shares rose approximately 1% on the Bombay Stock Exchange (BSE) in early trade on June 24, reflecting investor confidence in the company’s long-term growth strategy.

Market analysts have also endorsed the deal, citing the high profitability of AluChem’s operations and the strategic benefits of expanding in the specialty materials segment, which tends to be more resilient and less cyclical than the broader metals and mining industry.

Path Forward and Expected Synergies

Hindalco plans to integrate AluChem’s operations smoothly while preserving its management and operational autonomy to retain local expertise and customer relationships. The synergy potential lies in leveraging Hindalco’s raw material security and scale with AluChem’s deep market knowledge and strong positioning in North America.

In the medium to long term, Hindalco expects this acquisition to drive product innovation, expand export volumes, and create a more sustainable and diversified business model.

Moreover, the deal underscores Hindalco’s shift toward high-tech materials that support decarbonization goals and meet growing demand from emerging industries.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Defence Stocks Retreat After Two-Day Rally Amid Israel-Iran Ceasefire

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Hindustan Copper and CODELCO Strategic Collaboration to Triple Output by 2030
Market News - June 9, 2025

Copper Wire & Tube Imports Hit Multi-Year Highs in FY25 Amid Cathode Shipment Drop

Copper Wire & Tube Imports Hit Multi-Year Highs in FY25 Amid Cathode Shipment Drop

Regulatory disruptions and surging downstream demand reshape India’s copper trade, with new smelter capacity poised to alter the landscape.

Introduction
During FY2025, India witnessed a major shift in its copper trade dynamics, with imports of copper wire, tubes, and sheets reaching multi-year highs, even as copper cathode shipments fell by 34% year-on-year.
This divergence was triggered by regulatory changes, supply chain disruptions, and robust demand from key sectors like infrastructure, power, and electric vehicles. As new domestic smelting facilities become operational, the industry is preparing for a further shift in the upcoming quarters.

Regulatory Shock: The Quality Control Order and Its Ripple Effects
The sharp fall in copper cathode imports in FY25 can be traced to the imposition of a stringent quality control order (QCO) by the Indian government, effective December 1, 2024. The QCO requires all domestic and international copper cathode manufacturers to obtain Bureau of Indian Standards (BIS) certification prior to supplying in India.
This move, aimed at ensuring quality and safety, had unintended consequences: major exporters, especially from Japan, faced delays in obtaining certification, leading to a three-month supply disruption.
Copper cathode imports head a steep decline, it drop from a monthly average of 27,000 tonnes between April and November 2024 to just 2,000 tonnes per month during the December to February period.
Imports recovered to 16,000 tonnes in March 2025 as certification issues were resolved, but the impact was significant—annual cathode imports declined sharply to 239,000 tonnes from 363,000 tonnes the previous year.

Downstream Surge: Wire, Tube, and Sheet Imports Hit Record Highs
While cathode shipments dropped, imports of downstream copper products saw a significant surge.
In FY25, copper wire imports—mainly from the UAE—increased 17% to 154,000 tonnes, marking a five-year high, with their value rising 29% to ₹12,653 crore. Copper tubes and pipes, essential for air conditioning, refrigeration, and heat exchanger applications, increased by 30% to 114,000 tonnes—the highest level since FY18—worth ₹10,157 cr. Meanwhile, imports of copper plates, sheets, and strips—key components for electrical busbars and transformers—increased 49% to 30,000 tonnes, worth ₹2,725 crore.
This surge defied the QCO’s extension to downstream products, which was enforced from October 2024 for large and medium enterprises and later for smaller units. Several factors contributed to the import boom:
• Stockpiling ahead of regulatory deadlines
• Exclusions apply to specific tubes and products intended for export use
• Timely BIS certification for some foreign suppliers
• India’s status as the leading global importer of copper tubes highlights the magnitude of this demand, with the majority of imports coming from Vietnam, China, and Malaysia.

Demand Drivers: Copper’s Critical Role in India’s Economy
Copper is classified as a critical mineral in India, owing to its indispensable role in conventional and emerging technologies. It is the backbone of power transmission, air conditioning, electric vehicles, renewable energy infrastructure, and more. The country’s copper demand is expected to grow 10-13% in the latter half of FY25, fueled by infrastructure expansion and the green energy transition.
Despite the import surge, India still relies on foreign sources for about 30% of its copper cathode needs. The winding wire segment alone accounts for roughly half of cathode demand, and officials report no significant supply issues in downstream sectors during the QCO disruption.

Domestic Production: Recovery and New Capacity
On the supply front, domestic copper cathode production increased by 12.6% to 573,000 tonnes in FY25, driven primarily by Hindalco Industries (holding a 70% market share) and Vedanta’s Sterlite Copper (26%). The shutdown of Vedanta’s Tuticorin facility in 2018 shifted India’s status from a net exporter to a net importer of copper cathode.
A significant development this year is the debut of Adani’s Kutch Copper Ltd, which produced 22,000 tonnes in its inaugural year and aims to reach its full capacity of 500,000 tonnes by October 2025. Once fully operational, Adani’s smelter is expected to make India self-reliant in copper cathode, potentially curbing recent import growth and stabilizing domestic prices.

Legal and Industry Response
The QCO’s impact has not gone unchallenged. Two metals trade associations have petitioned the Union Mines Ministry, arguing that the new quality norms caused acute shortages and allowed domestic producers to hike prices. The government, however, maintains that no significant shortages occurred and that the certification process was communicated well in advance.

Outlook: What Lies Ahead?
India’s copper industry is reaching a pivotal moment. The recent import boom in wires, tubes, and sheets may moderate as the QCO’s effects stabilize and new domestic smelting capacity comes online. With Adani’s plant nearing full operation and existing players ramping up output, India could soon meet its entire cathode demand internally, reducing reliance on imports and potentially lowering costs for downstream industries.
However, with copper demand set to rise further—driven by electrification, green energy, and infrastructure—the sector will remain dynamic. Regulatory clarity, supply chain resilience, and continued investment in domestic capacity will be crucial for sustainable growth.

Meta Description
In FY2025, India saw a significant rise in copper wire, tube, and sheet imports, reaching levels not seen in years, even as copper cathode shipments dropped sharply by 34%, mainly due to regulatory hurdles.
As new domestic smelters come online, the industry expects a shift toward self-sufficiency, even as demand from infrastructure and green energy remains robust.

 

 

 

 

 

 

 

 

 

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Record-Breaking Dividend Alert: Swaraj Engines Declares Rs 104.5 Per Share!

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Indian Steelmakers Gain as Import Duties Continue and China Cuts Supply
Economy - June 4, 2025

US Steel Tariffs: A Dilemma for Indian Manufacturers

US Steel Tariffs: A Dilemma for Indian Manufacturers

While higher import tariffs may lead to uncertainty, companies such as JSW Steel and Hindalco’s Novelis are finding positive aspects in potential policy adjustments and the benefits of local production.

Summary:
The United States’ decision to double tariffs on steel and aluminium imports has stirred concerns across global markets, yet Indian companies with manufacturing operations in the US—like JSW Steel and Hindalco’s Novelis—are preparing to navigate the changes with cautious optimism. With expectations of limited overall impact due to counterbalancing trade measures and localized production, Indian firms might turn potential headwinds into competitive advantages.

US Doubles Down on Steel Tariffs: A Global Ripple Effect
In a notable protectionist measure, the Biden administration declared that it would increase tariffs on certain steel and aluminum imports by double. This policy aims to protect American industry from alleged unfair competition, especially from Chinese companies rerouting materials through third countries. While this aggressive trade stance may ruffle international relations, it has a more nuanced impact on manufacturing for Indian companies within the United States.
For Indian metals giants like JSW Steel and Hindalco’s Novelis, the development presents a mix of challenges and opportunities. Though global trade uncertainty has increased, their established local manufacturing presence offers insulation from direct tariff penalties and positions them favourably in a more protected domestic environment.

JSW Steel: Tariff Shock or Strategic Advantage?
JSW Steel, one of India’s largest steel producers, has significant operations in the US, including facilities in Texas and Ohio. The company has been working to improve the performance of its American units, which have historically seen profitability challenges due to operational issues and volatile market conditions.
With the new tariffs in place, JSW Steel’s US business may actually stand to gain as domestic producers become more competitive against imports.
“Our American operations have been gradually improving, and with these tariffs, we expect positive contributions moving forward,” a senior JSW official was quoted as saying.
The company has already invested over $1 billion in modernizing its US plants. With increased tariffs likely to raise the cost of imported steel, domestic players like JSW’s US units could benefit from increased demand and improved margins. However, the full extent of the impact will depend on whether JSW sources raw materials or semi-finished products from outside the US, which might still be affected by the tariff hikes.

Novelis (Hindalco): Neutral to Positive Outlook Amid Trade Complexity
Novelis, a subsidiary of Hindalco Industries based in Atlanta, is a prominent global provider of rolled aluminium products and a recycler of aluminium. The company has a robust US manufacturing footprint, which strategically positions it to weather import-related trade turbulence.
Commenting on the tariff development, a Novelis spokesperson indicated the company expects a “neutral to positive” outcome, subject to the outcomes of ongoing trade negotiations and potential exemptions.
Novelis’ existing domestic production capacity means the company is less reliant on imported aluminium, which cushions it from the immediate effects of tariff increases. Additionally, given its involvement in high-growth segments like automotive and beverage manufacturing, demand for its products is expected to remain strong.
Still, executives are keeping a close eye on trade policy dynamics, particularly rules of origin and any potential retaliatory measures from affected countries, which could alter cost structures.

Mixed Signals from Analysts: Limited Immediate Impact, Long-Term Uncertainty
Although the tariffs are attracting significant attention, many analysts believe that their overall effect on Indian companies operating in the US may be minimal. This is due to several reasons:
1. Local Manufacturing Mitigates Impact: Indian companies with manufacturing facilities in the US can bypass direct tariffs.
2. Existing Safeguard Duties: Current safeguard measures under Section 232 have already set up barriers for imports, and the recent actions are seen by some as largely symbolic.
3. Potential for Exemptions: Ongoing trade negotiations might provide opportunities for exclusions or quotas that could safeguard allied nations, including India.
4. Global Capacity Constraints: With the supply of aluminium and steel already limited worldwide, changes in tariffs may lead to adjustments in supply chains rather than a decrease in demand.
However, uncertainty continues to be a significant issue. If global supply chains suffer from retaliatory measures or if trade conflicts escalate, even companies that are locally established could experience rising costs or fluctuations in demand.

Global Competitiveness: Indian Companies Poised to Pivot
From a strategic standpoint, these tariffs could prompt Indian conglomerates to double down on localizing production for global markets. The recent move may also serve as a wake-up call for companies overly dependent on exports to build capacity in key consumer markets like the US.
Additionally, firms with sustainability-aligned growth models—such as Novelis with its recycling initiatives—could capitalize on US government preferences for cleaner, domestically produced metals.

Future Outlook: Navigating Policy with Strategy
Looking forward, the full impact of the new US tariffs on Indian companies will hinge on several variables:
Bilateral Trade Talks: Will India negotiate exclusions or special treatment?
Input Cost Trends: Will tariffs increase raw material costs for Indian companies operating abroad?
Competitor Behavior: How will Chinese and European rivals adapt or respond?
US Infrastructure Push: Will the US government’s focus on domestic infrastructure projects provide sustained demand?
For now, companies like JSW and Novelis are maintaining a cautious but optimistic stance. Their investment in US-based capacity may now offer them a protective moat, making them beneficiaries rather than victims of rising trade walls.

Conclusion:
The increase in steel and aluminum tariffs by the US creates a complex situation for Indian companies operating in America. While global uncertainties remain, firms with established US production, like JSW Steel and Novelis, appear well-positioned to weather the storm—and potentially even profit from it. By leveraging local presence and adapting supply chains, Indian companies may convert trade challenges into strategic gains in the long run.

 

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Vedanta Floats ₹4,100 Crore Bond Issue to Boost Liquidity**

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Metal Stocks Soar 10% on Trade Optimism!
Equities - May 16, 2025

Metal Stocks Soar 10% on Trade Optimism!

Metal Stocks Soar 10% on Trade Optimism!

 

Metal stocks experienced a substantial rally, driven by increased global sentiment following a provisional trade agreement between the US and China and growing confidence in recovering cyclical and commodity demand.

Summary:

Indian metal stocks have surged 10% this week, outperforming broader market indices. The rally has been driven by improving global risk sentiment after the US and China announced a provisional trade agreement. Investors are returning to cyclical sectors like metals with expectations of rising industrial activity, renewed foreign inflows, and stabilizing commodity prices.

Metals Lead the Market as Optimism Returns

Metal stocks have made a remarkable recovery, increasing by 10% in just one week and emerging as the top-performing sector on Dalal Street. This surge is due to a provisional trade deal between the United States and China, significantly improving global risk sentiment and triggering bullish momentum in cyclical sectors.
This unexpected revival has sparked renewed momentum for companies like Tata Steel, JSW Steel, Hindalco, Vedanta, and SAIL, leading to a noticeable boost in their production levels and growing interest from investors. The Nifty Metal Index outperforms benchmark indices such as the Nifty 50 and Nifty Bank, which have seen more moderate gains during the same period.

What’s Fueling the Rally in Metal Stocks?

1. US-China Trade Agreement Fuels Global Market Optimism
The main driver behind the current market surge is the announcement of a preliminary trade agreement between the US and China, the two largest economies in the world. Although the deal has not yet been formally signed, both nations have committed to lowering tariffs, enhancing trade transparency, and promoting bilateral commodity exchanges. This development has infused confidence into global markets, leading investors to see it as a sign of reduced geopolitical tensions and a possible rebound in worldwide trade volumes. Sectors linked to economic growth, such as metals, have experienced positive responses. The trade agreement is also anticipated to increase demand for base metals like steel, aluminum, and copper, especially if it spurs infrastructure investments and a revival in manufacturing.
2. Commodity Prices Stabilizing
The recent stabilization in global commodity prices is another significant boost for metal stocks. After a period of volatility, prices for steel, aluminum, and copper have leveled off, with strong demand emerging from the infrastructure, real estate, and renewable energy sectors in Asia and the West. Additionally, iron ore and coking coal prices have steadied, which enhances margin visibility for producers in the metals sector.
3. Foreign Investment in Indian Equities
The uptick in global risk appetite is encouraging a resurgence of foreign institutional investors (FIIs) in Indian markets. Since metals serve as a barometer for international growth, they are often among the first sectors to benefit when FIIs shift their focus back to emerging markets. Data from NSDL shows that in May alone, FIIs infused over ₹12,000 crore into Indian equities, with a significant portion flowing into metal stocks.
4. Domestic Support Factors
On the home front, India’s ambitious infrastructure initiatives under the National Infrastructure Pipeline and increased capital expenditure outlined in the FY26 Budget are expected to sustain demand for steel, aluminum, and other industrial metals. Government-supported housing developments, railway expansions, and green energy projects use metal extensively, granting the sector strong long-term demand prospects.

Top Gainers This Week

-Tata Steel: Increased by 9.6% due to favorable expectations for global spreads and reduced input costs.
-JSW Steel: Rose 11.2%, supported by an optimistic forecast for steel demand in India.
-Hindalco: Gained 10.4%, fueled by optimism surrounding US aluminum demand and the performance of Novelis.
-Vedanta: Up 12% following a favorable rating outlook and strong prices for base metals.
-SAIL: Increased by 10.8% due to rising volumes and improvements in capacity utilization.
There has also been renewed interest in mid-cap metal stocks like Jindal Stainless, MOIL, and National Aluminium Company (NALCO), which have seen increased investor engagement.

Analysts Turn Bullish — But With Caution

Brokerages have noted the metal sector’s breakout. CLSA recently upgraded its view on Indian steel producers, citing better operating leverage and pricing outlook. ICICI Securities mentioned that “the sector looks poised for a short-term re-rating if global macros remain supportive.”
However, analysts also advise investors to remain selective. Metal stocks are subject to cyclical trends and generally align with global commodity cycles. A reversal in prices or re-escalation in geopolitical tensions could quickly erode gains.

*Near-Term Outlook: Can the Rally Sustain?

*The upcoming weeks will be crucial in determining whether we’re witnessing a long-term recovery or a temporary rebound. Several factors will play a role in shaping this trajectory:
1. The completion and execution of the trade agreement between the US and China.
2. The trends in global metal prices, particularly in China, the largest consumer of industrial metals.
3. Foreign institutional investors (FIIs) stance on Indian equities in light of international interest rate decisions.
4. The impact of the monsoon on demand in India’s construction and real estate sectors.
5. Global manufacturing PMI data from the US, Eurozone, and China.
If the macroeconomic indicators remain positive, the metal sector may spearhead the next phase of the market’s rally.

Conclusion

Metal stocks surged by 10% this week, reflecting a renewed sense of optimism across global markets. Driven by the easing of US-China trade tensions, stable commodity prices, and robust domestic demand, metals are once again in favor among investors. While the rally may continue in the short term, investors should stay grounded and make informed, stock-specific decisions rather than unthinkingly chasing momentum. Cyclical stocks like metals offer strong returns—but only to those who time their entry and exit well.

 

 

 

 

 

 

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Abbott India Q4 Profit Jumps 28% on Strong Medicine Sales and Efficiency Gains

 

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Jindal Steel & Power Q1 FY26: Profits Surge on Operational Gains and Strategic Growth
Business, Equities, Research - August 18, 2022

Shares of Hindalco tanked even after good results.

Shares of Hindalco tanked even after good results.

Hindalco reported an all-time high quarterly consolidated net profit for June 2022 at 4,119 crores, up 48% from the year-ago quarter of Rs.2784 crores. Its consolidated revenue rose to 58,018 crores as against 41,358 crores, up 40% YoY. The company reported an all-time high EBITDA of 8,640 crores, which was up 27% from the year ago quarter of 6,790 crores. Meanwhile, its net debt to EBITDA remained strong at 1.40x in Q1 FY23 compared to 2.36x in Q1 FY22.

The main reason for the downtrend

India’s aluminum cost increase of 17% from quarter to quarter was offset in the past quarter. Many investors expect the cumulative impact of inflation to show in Q2 FY23 EBITDA for the aluminium business. The net debt also increased by Rs. 3100 crores from quarter to quarter to Rs. 42200 crores. The stress is on account of compressing scrap, the impending housing sector downturn, and recent Ball Corp with the inflation-weakening demand for cans in North America.

The high margins and significant release of working capital as a result of falling aluminum prices would generate cash flow for Novelis in FY23.While India’s operation’s earnings would be under stress in the near term due to a fall in LME (London Metal Exchange) and high energy costs. We expect it to recover in Q3Y22 and onwards on the back of the restoration of coal supplies by Coal India NSE 0.14 % and stable LME.

The company believed the results were driven by an excellent performance by Novelis and strong performances by Aluminium Downstream and Copper businesses, supported by operational efficiencies and higher volumes. FuThe EBITDA and EBITDA per ton were high, mainly due to higher product pricing, favourable product mix, and recycling benefits. Seeing ahead, the main focus is on riding all market cycles with a greener, stronger, smarter approach.

The performance was backed by strong operational efficiencies and preemptive sourcing of critical raw materials, thus ensuring stable operations and higher margins. The business model supports their position as an integrated aluminium producer with the best EBITDA margins.

After delivering record profitability in the fourth quarter, they have delivered an even stronger first quarter despite rising input costs and inflationary pressures. The performance was because of operational efficiencies and cost-efficient sourcing of critical raw materials.

Valuations:

The EPS was at Rs.67.0 for June 2022. The Return on capital employed was at 16.2% and Return on Equity reported was at 18.5%. EVEBITDA stood at 4.57x for Q1 FY23 quarter. Price to book value was at 1.26x, whereas Return on Asset was at 6.52%. The shares of Hindalco were trading at Rs.435 down by 0.90% on Thursday.

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Jindal Steel & Power Q1 FY26: Profits Surge on Operational Gains and Strategic Growth
Business, Commodities, Economy, Equities, Investor Forum, Market News, Markets - April 15, 2020

Hindalco concludes buying Aleris

Hindalco completes Aleris buy through its subsidiary The flagship company of the Aditya Birla Group, Hindalco through it's subsidiary Novelis has completed the buyout of Aleris Corp. The buyout was...
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