Financial Daily from THE HINDU group of publications
Wednesday, Jul 13, 2005
Markets - Stocks
Hindalco to pursue organic, inorganic route for growth Board okays stock split
Mr Kumar Mangalam Birla (right), Chairman, Hindalco Industries Ltd, with Mr D. Bhattacharya, Managing Director, at the company's AGM in Mumbai on Tuesday. Paul Noronha
Mumbai , July 12
HINDALCO Industries Ltd said on Tuesday that its board has approved the sub-division of equity shares of the company from one share of Rs 10 each to 10 shares of Re 1 each.
The board has decided to call an extraordinary general meeting of the shareholders on August 6, to approve the stock-split proposal.
At the annual general meeting, Mr Kumar Mangalam Birla, Chairman, Hindalco, told shareholders that the company would aggressively pursue both organic and inorganic routes for growth.
The roadmap for growing further is to raise the company's cost competitiveness through further improvements and optimal asset sweating, leveraging the Hindalco-Indal combine, exploring opportunities for value adding growth to take advantage of long-term potential in the country, he said.
The company is going through commissioning trials to take the copper smelter capacity at Dahej from 2,50,000 tonnes per annum to 5,00,000 tonnes per annum.
"Once stabilised this expansion will catapult Hindalco to the position of the world's largest single location custom copper smelter and among the top 10 copper producers of the world," he said.
It brings Hindalco closer to its goal of being among the top 15 per cent of globally cost-efficient copper producers.
The company's project to raise alumina capacity at its Muri plant from 1,10,000 tonnes to 4,50,000 tonnes is likely to be commissioned by the third quarter of fiscal 2006.
The proposal for capacity enhancement at Belgaum from 3,50,000 tonnes to 6,50,000 tonnes is under evaluation. The company also plans to raise high value special alumina capacity from its existing level of 91,000 tonnes per annum.
The Hirakud smelter metal capacity is being enhanced from 65,000 tonnes to 146,000 tonnes while power generation capacity will increase from 67.5 MW to 317.5 MW in a phased manner.
In copper, the company wants to strengthen its exports presence even as it retains domestic leadership. "The company intends to entrench itself further into the profitable markets of South-East Asia and West Asia.
The huge demand-supply gap in the region as well as improved availability of low cost metal from the expanded capacity will be exploited optimally," Mr Birla said.
Acquiring new mines to secure concentrate supplies would be another option to be looked at by the company.
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