The Aditya Birla group is seen in race for a unit of Canada-based aluminium major Alcan. |
Sources in the know said Birla group company Hindalco was expected to bid for the Alcan unit shortly. The proposed bid would be part of the company's ambitious plans to become one of the top 10 aluminium producers globally over five to six years, the sources said. |
Although the details of the target unit could not be confirmed, it is estimated that it would carry a price tag of over $8 billion. |
Alcan is into the bauxite and alumina, primary metals, engineered products and packaging businesses. |
An Aditya Birla group spokesperson said: "As a policy, we don't comment on speculation." |
Analysts said Hindalco would have to face fierce competition from global majors to win the unit. |
Hindalco has a long-standing relationship with Alcan. In fact, the company had acquired the Kolkata-based Indian Aluminium (Indal) six years ago by taking over the majority stake from Alcan. Later, the Birla group converted Indal into a closely held company by delisting its shares. |
Hindalco has a joint venture with Alcan in Orissa "� Utkal Alumina. The company is developing bauxite mines and is also setting up an alumina refinery with 1-1.5 million tonne capacity a year. |
Alcan is among the top three producers of bauxite and alumina in the world. It owns, operates and has interests in seven bauxite mines and deposites in countries such as Australia, Brazil and Guinea. It has a footprint in 55 nations across the world. Its net sales stood at $20.3 billion in FY05. |
Hindalco posted Rs 11,400 crore sales last year and its reserves stood at Rs 9,500 crore. |