Hindalco buys Polycab's subsidiary to boost copper rod production

Hindalco Industries Limited has procured a Polycab India Limited subsidiary as the Kumar Mangalam Birla-controlled firm plans to increase its copper rod production capacity, enabling it to provide to the surging demand from the electrical and electronics sectors. The 100% takeover of Ryker Base Private will be via Hindalco’s wholly-owned subsidiary Renuka Investments & Finance Limited for an enterprise value of Rs 323 crore, as per an exchange filing. The agreement is subject to customary adjustments for working capital and net debt as of the date of closing. Ryker has a 225,000-tonne plant for production cast, rolled copper wire rods situated at Gujarat. According to the managing director at Hindalco Industries, Satish Pai, the agreement is a step forward towards Hindalco’s downstream plan. In a filing, he said that the firm has recently declared two projects — a greenfield aluminium extrusions facility in Silvassa and a flat-rolled products plant in Hirakud — intended at improving product mix towards more value-added products. The Ryker agreement will further enhance their portfolio of downstream products. Shares of Hindalco closed 2.32% higher on Wednesday as against a 0.33% drop in the Nifty 50. Image Source