Hindalco Industries to pick up 100% equity stake in Ryker Base Pvt Ltd for an enterprise value of Rs 323 crore. Ryker is a wholly-owned subsidiary of Polycab India Ltd
HindalcoNSE 2.11 % Industries Limited, part of the Aditya Birla Group, on Wednesday announced the acquisition of 100 per cent equity stake in Ryker Base Pvt Ltd for an enterprise value of Rs 323 crore. Ryker is a wholly-owned subsidiary ofPolycabNSE -1.40 % India Ltd.
The acquisition will be done through Hindalco’s wholly-owned subsidiary Renuka Investments & Finance Ltd.
According to a release, the acquisition will strengthen Hindalco’s copper rod manufacturing capacity by providing a time-to-market advantage, allowing the company to cater to the growing demand from electrical and electronics sectors.
The purchase consideration for the equity stake is based on an enterprise value of Rs 323 crore, subject to customary adjustments for working capital and net debt as on the date of closing, it added.
Ryker’s 225,000-tonne plant for manufacturing cast and rolled copper wire rods is located at Waghodia (Gujarat). Hindalco operates one of the world’s largest single-location custom copper smelters at Dahej in Gujarat, with a copper rod capacity of 3,45,000 tonnes.
Hindalco’s copper is a vital input into India’s accelerating journey on electrification, urbanisation, renewables and e-mobility. Keeping the needs of the nation and industry in mind, the company has taken the step to expand its capacity, Satish Pai, Managing Director of Hindalco Industries, said.
“We had recently announced two projects — a greenfield aluminium extrusions plant in Silvassa, and a flat-rolled products facility in Hirakud — aimed at enhancing our product mix towards more value-added products. The Ryker deal will further enrich our portfolio of downstream products,” he added.
Hindalco’s copper products are customised for use in home electrification and in the country’s core sectors like power, construction, automobiles and Indian Railways.
Ryker’s copper wire rods facility uses German technology, consumes less energy and is significantly lower on carbon emissions.