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Hindalco shares in focus after subsidiary acquires US-based AluChem for $125 mn

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June 25, 2025
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Hindalco shares in focus after subsidiary acquires US-based AluChem for 5 mn
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Shares of Hindalco Industries, the metals flagship of the Aditya Birla Group, will be in focus on Wednesday after the company announced the acquisition of US-based AluChem Companies, Inc. for an enterprise value of $125 million. The deal will be executed through Aditya Holdings LLC, a step-down wholly owned subsidiary of Hindalco.

This marks the first entry by an Indian company into the low-soda tabular alumina segment, significantly strengthening Hindalco’s presence in precision-engineered, high-performance industrial materials. Tabular alumina is a premium-grade material used in applications across refractories, ceramics, and advanced manufacturing.

With this acquisition, Hindalco enhances its footprint in North America and broadens its speciality alumina portfolio. The company’s speciality alumina business — a key pillar in its value-added product strategy — has seen consistent double-digit growth and has emerged as a high-margin vertical in recent years.

As speciality alumina gains traction across sectors such as electric mobility, semiconductors, and precision ceramics, the acquisition positions Hindalco to access next-generation applications and drive innovation-led growth.

Also Read: M&M, Coforge among 10 high-conviction stock ideas post Q4FY25 results that can rally up to 52%

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AluChem has a strong presence in North America, with an annual production capacity of 60,000 tonnes across three manufacturing facilities located in Ohio and Arkansas. It is a well-established supplier of ultra-low soda calcined and tabular alumina, known for its thermal and mechanical stability, catering to high-precision industries and energy-intensive applications.Kumar Mangalam Birla, Chairman of Aditya Birla Group, said, “This acquisition is an important step in our global strategy to build a leadership position in value-added, high-tech materials.Our strategic foray into the speciality alumina space will not only accelerate the development of future-ready, sustainable solutions but also open new pathways to pursue high-impact growth opportunities.”

Also Read: 11 Nifty mid & smallcap stocks that can rally 40-90% over the next 12 months

Hindalco shares have gained around 13% so far in 2025 and have delivered a robust return of 64% over the past two years. The company currently commands a market capitalisation of approximately Rs 1.5 lakh crore.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)

Tags: acquiresaditya birla groupAluChemaluchem deal valueFocusHindalcohindalco aluchem acquisitionHindalco Industrieshindalco share newshindalco share pricehindalco us expansionkumar mangalam birla hindalcosharesspeciality alumina marketsubsidiaryUSbased
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