Hindalco plans acquisitions

Hindalco Industries, an Aditya Birla group company, is planning to pursue growth through organic and inorganic route and position the company among the top 10 in the world.

This would include raising of its smelter capacities, acquiring mining leases and strengthening the company's presence in exports, according to chairman Kumar Mangalam Birla.

Addressing the company's 46th annual general meeting here today, Birla said the company would increase its alumina capacity at its Muri plant in Orissa to 4.5 lakh tonne per annum (tpa) from the existing 1.1 lakh tpa. The increase would be effected by the third quarter of fiscal year 2006.

The company has also evaluating a capacity enhancement at Belgaum in Karnatka to 6.5 lakh tpa from 3.5 lakh tpa and increasing high value special alumina capacity from its existing level of 91,000 tpa, he said.

A capacity increase at Hirakud smelter in Orissa would also be increased to 1.46 lakh tonne tpa from 65,000 tpa, while power generation capacity will rise to 317.5 mega watts (MW) from 67.5 mw. This would be done in phases.

Birla said mining leases for bauxite reserves of over 195 million tonne are in place, the land been acquired and the site development work. This would gain momentum in the coming fiscal.

Hindalco has signed memorandum of understandings with Orissa government to set up an aluminium complex and with the Jharkhand government for setting up a greenfield aluminium smelter in the state.

"The projects, which are subject to regulatory approvals, are on due course and once commissioned these projects will position Hindalco in the league of top 10 global players," he said.

Earlier, during the day, the company's board approved a proposal of sub-division of its equity shares from one share of the face value of Rs 10 each into 19 equity shares of Re 1.

An extraordinary general meeting would be called on August 6 to get shareholders' approval for the proposal.

The company also declared a dividend of Rs 20 a share, which will result in a payout of around 16 per cent of it net profit, amounting to Rs 212 crore.