Building on a solid foundation

Kumar Mangalam Birla Chairman, Hindalco

Hindalco Industries Limited, the metals flagship of the Aditya Birla Group, is the world’s largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia. Its copper smelter is the world’s largest custom smelter at a single location. The acquisition of Novelis Inc., a global leader in aluminium rolled products and beverage can recycling, in 2007, positioned Hindalco among the top five aluminium majors worldwide and the largest vertically integrated aluminium company in India.

Hindalco acquired Novelis, a company three times its size, for $6 billion by paying $3.5 billion in cash and taking on $2.5 billion of its debt. In the third quarter of the financial year 2010-11, Novelis completed refinancing transactions to recapitalise its balance sheet, and the proceeds were used to refinance Novelis’ prior secured term loan credit facility, and to fund its previously announced cash tender offers. Hindalco believes the refinancing provides it as well as Novelis increased flexibility to address growth opportunities in order to further strengthen their global footprint.

At the 51st AGM of the company, Kumar Mangalam Birla, chairman, Hindalco, said, “Building on a solid foundation, Novelis today is a leaner and more nimble entity. It is perhaps the only pure play focused, aluminium rolled products global company.”

For the third quarter ended December 31, 2010, Hindalco reported

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