Alcan plans takeovers, joint ventures in India

Alcan Inc, fighting a takeover attempt by Alcoa, today said it intended to expand operations in India through acquisitions and joint ventures.

The announcement comes within a couple of months after Alcan decided to pull out of Utkal Alumina International, its joint venture with the Aditya Birla Group, by selling its 45 per cent stake.

"You will be hearing about more acquisitions in the next two to three years," said Steve Henning, director of strategy at Alcan Composites. He was addressing a press conference to announce the acquisition of 76 per cent stake in Alukbond India Pvt, maker and seller of agricultural facades, for an undisclosed amount. The company posted sales of $5 million last year.

He, however, didn't give details of his proposed expansion plans in India. Analysts said the expansion plan of the Montreal-based aluminium maker would depend on the future ownership of the company which had recently rejected a $27.6 billion takeover bid from Alcoa.

Alcoa can emerge as the world's largest aluminium company if it could woo the Alcan management with its offer. However, Alcoa may come out with a revised offer. Brazilian majors may also join the race, said an analyst.

Henning declined to comment on the speculation that Indian companies may join hands with their Brazilian counterparts to bid for Alcan. He did not comment on the possibility of Alcan making a hostile offer for Hindalco. He said the acquisition of Alukbond would provide Alcan an opportunity to enter the Rs 300 crore market for architectural facades made from aluminium which is growing 15 per cent a year.

Alcan had announced earlier that it would like to sell its 45 per cent stake in Utkal Alumina, which involves the development of a bauxite mine and a new alumina refinery in Orissa by June.