Hindalco Industries board approves proposal to sell land for ₹595 crore
Hindalco Industries Limited has approved a proposal to sell a land parcel at Kalwa, Maharashtra, for ₹595 crore. The land parcel is located in the Kalwa MIDC area and has a total area of 12.95 acres. The sale of the land parcel is part of Hindalco's strategy to focus on its core businesses and reduce its debt.
The proceeds from the sale will be used to repay debt and for other general corporate purposes. Hindalco Industries is a leading global aluminium and copper producer. The company has a diversified portfolio of businesses, including aluminium, copper, specialty products, and packaging.
Hindalco is headquartered in Mumbai, India, and has operations in over 30 countries. The sale of the land parcel is subject to the approval of the shareholders of Hindalco Industries. The company is expected to complete the sale in the next few months.
The shares of Hindalco Industries soared and closed in green even in the choppy market conditions. The shares ended the day at ₹424.65 per share, whereas the sensex closed at 65,393.90 down 223 points or 0.34 per cent. The Silvassa extrusion factory is expected to reach maximum capacity (30kt) by mid-FY25. The copper smelter is closed for maintenance and will reopen in mid-June 2023, which will have a negative impact on Q1FY24 copper margins.
Due to severe macroeconomic conditions, the company's earnings performance was sluggish despite decreased volumes. The company has invested Rs. 609 crore in Silvassa to construct new extrusion units with a capacity of 34 KTPA.
The company has grown in size by acquiring the Kuppam facility for Rs. 247 crores in enterprise value and Ryker Base Private Limited, renamed Asoj, for Rs. 323 crores in enterprise value.
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