Hindalco rules out Indal merger for now

Hindalco, the A V Birla group company, has ruled out a merger of the recently acquired Indal with itself for now.

Vice-chairman A K Agarwala, at the sidelines of the company's 66th annual general meeting on Friday, said, "In the next couple of years a merger was definitely ruled out. We are, at present, expanding our existing capacities, and would consider the issue only after that".

"Over two years down the line, the merger could be a possibility," he added.

Hindalco holds close to 96 per cent in Indal and recently offered another exit option for its existing minority shareholders for taking over the entire holding following which the merger could be initiated.

The expansion plan at Indal involves a Rs 2,300 crore outlay over two years. The entire amount would be financed from internal accruals.

"We have already invested close to Rs 300 crore and intend to invest another Rs 800 crore this year," explained S K Tamotia, president and CEO, Indal.

Another Rs 800 crore would be invested next year, while the rest at Rs 700 crore would be expended in 2005-06.