Hindalco Acquires 100% Stake in Ryker Base from Polycab
Aditya Birla Group’s Hindalco Industries Limited has announced the acquisition of 100 percent equity stake in Ryker Base Pvt. Ltd. (Ryker) in order to strengthen its Copper portfolio.
Ryker Base Pvt. Ltd. is a wholly-owned subsidiary of Polycab India Limited, a leading Indian cable manufacturer.
The purchase of the equity stake will be at an enterprise value of ₹323 crore and is being made through Renuka Investments & Finance Ltd., a wholly-owned subsidiary of Hindalco.
About Ryker Base Private Limited and Hindalco Industries Limited
Ryker Base Private Limited was incorporated in India in July 2016 to develop, own and operate a 225,000-tonne manufacturing facility for cast and rolled Copper wire rods, located at Waghodia, Gujarat. It was formed as a 50:50 JV between Polycab India Ltd. and World’s leading independent commodity trading company, Trafigura Pte. Ltd.
Later, in 2020, during the Covid pandemic Polycab purchase the stake of Trafigura.
Hindalco Industries Limited is an Indian Aluminum and Copper manufacturing company and is India’s largest Copper producer. 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 tonnes.
Hindalco’s Copper products are customized for use in home electrification and in core sectors like power, construction, automobiles and Indian Railways.
This acquisition will strengthen Hindalco’s Copper Rod Manufacturing Capacity.
Expressing on the announcement of acquisition Mr. Satish Pai, Managing Director, Hindalco Industries mentioned ” The acquisition takes forward Hindalco’s downstream strategy. 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 ” as per the press release of Hindalco dated 3rd November 2021.
He also added that Hindalco’s Copper is a vital input for India’s accelerating journey on Electrification, Urbanization, Renewables and E-Mobility.
The acquisition will greatly strengthen Hindalco’s Copper rod manufacturing capacity and also will help Hindalco cater to the growing demand from electrical and electronics sectors.
Also, Ryker’s Copper wire rods facility uses German technology, consumes less energy and is significantly lower on carbon emissions, which aligns well with Hindalco’s ESG (Environmental, Social and Governance) focus.
The move of Hindalco also acts as a catalyst in fulfilling the needs of the nation and industry.