Hindalco Industries acquires Ryker Base for enterprise value of Rs 323 cr

Deal will strengthen Hindalco's copper rod capacity by providing a time-to-market edge, allowing it to cater to the growing demand from electrical and electronics sectors

Hindalco Industries Limited on Wednesday announced the acquisition of Ryker Base Pvt Ltd, a wholly-owned subsidiary of Polycab India Limited, for an enterprise value of Rs 323 crore.

The acquisition will be through Hindalco’s wholly-owned subsidiary Renuka Investments & Finance Ltd, with a purchase consideration for 100 percent equity stake, subject to customary adjustments for working capital and net debt as on the date of closing, Hindalco said in its release today.

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.

Ryker’s 225,000 tonne plant for manufacturing cast and rolled copper wire rods is located at Waghodia (Gujarat), while Hindalco operates one of the world’s largest single-location custom Copper Smelters at Dahej in Gujarat, with a copper rod capacity of 345,000 tonne.

“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, Hindalco has taken the step to expand its capacity,"the release quoted Satish Pai, managing director at Hindalco Industries as saying.

The acquisition takes forward Hindalco’s downstream strategy as the company 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.

Ryker’s copper wire rods facility uses German technology, consumes less energy and is significantly lower on carbon emissions. The plant is well aligned with Hindalco’s ESG focus, said the Aditya Birla Group company.