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With the Supreme Court giving a final verdict on the coal block issue, cancelling all allocations it deemed illegal, Hindalco Industries says it's up to the central government to mend matters.
Kumar Mangalam Birla, chairman, said: “I am sure this government would have chalked out a fallback plan as lakhs of crores of investment has gone into these mines by many companies and business groups.”
He was speaking at the company’s 55th annual general meeting here on Wednesday. Asked if Hindalco’s coal import would rise, Debu Bhattacharya, managing director, said on the event's sidelines, “Looks like yes but I can't say to what level...it's too early to say.” The aluminium producer had imported 300,000 tonnes of coal in 2013-14.
Hindalco was allocated the Mahan coal block to feed its power-hungry aluminium unit in Madhya Pradesh. Mahan Coal was a joint venture between Hindalco Industries and Essar Power, which have already invested Rs 20,000 crore for setting up the plants.
Regarding promoters’ share in Hindalco’s total shareholding, Birla said, “We are continuously looking to increase it and that is something of a priority for us as a promoter group.”
As on June 30, of the total shareholding pattern, promoter and promoter group holds 36.99%, while institutions hold 41.77%, public 55.39% and balance is spread between FIIs, DIIs, non-institutions and bodies corporate.
On query regarding bonus or a rights issue, Birla said, "I can assure there is something the board will definitely look into when we belive any such bonus or rights issue is in the offing and you must keep in mind that shareholders are uppermost in the minds of the board."
Regarding the future of Novelis, the company's US-based subsidiary, Birla said there were plans to increase the share of its value-added products, increase margins, and increase share of recyling which will help us lower cost of production.
"We will also go from can-led company to becoming a auto-led company, which means our share in auto components will gradually increase as we have our new capacities in north America along with large supply contracts with auto makers like Ford, Land Rover and Jaguar therefore what we are doing is that we are moving towards product mix that is richer perhaps less volatile," he said.
