Hindalco Share Price in Focus as It Moves to Acquire US-Based AluChem for $125 Million

Hindalco Industries, the metals arm of the Aditya Birla Group, has announced a definitive agreement to acquire AluChem Companies, an Ohio-based producer of high-value specialty alumina, for an enterprise value of $125 million. This marks Hindalco’s third strategic acquisition in the US, following its earlier takeovers of Novelis and Aleris Corporation.

The transaction will be executed through Aditya Holdings, a wholly-owned step-down subsidiary of Hindalco.

Strengthening Global Specialty Alumina Capacity

Hindalco currently operates 500,000 tonnes of specialty alumina capacity and plans to double this to 1 million tonnes by FY2030. The acquisition of AluChem supports this expansion vision by giving Hindalco a robust presence in the North American market, with AluChem boasting an annual capacity of 60,000 tonnes across 3 facilities located in Ohio and Arkansas.

The specialty alumina market is poised for strong growth globally, driven by rising demand across sectors like electronics, ceramics, aerospace, electric mobility, semiconductors, and medical applications.

Strategic Push into High-Tech Materials

Commenting on the development, Aditya Birla Group Chairman Kumar Mangalam Birla called the move a “strategic leap” toward strengthening Hindalco’s portfolio in advanced materials.

“Our strategic foray into the specialty alumina space will not only accelerate the development of future-ready, sustainable solutions but also open new pathways to pursue high-impact growth opportunities,” Birla noted.

The acquisition aligns with Hindalco’s long-term strategy of pivoting toward high-margin, high-tech segments and reinforces its commitment to sustainability and innovation-led growth.

Hindalco Share Price Performance

As of 10:06 AM on June 25, 2025, Hindalco Industries Ltd traded at ₹670.80, up by 0.21% from its previous close of ₹669.40. The stock opened higher at ₹676.95 but saw some intraday pressure, dipping to a low of ₹670.05. Trading activity was robust, with a volume of 15.36 lakh shares and a total traded value of ₹103.32 crore.

Hindalco’s market capitalization stood at ₹1.51 lakh crore, with a free float market cap of ₹96,943 crore.

Read More: Best Metal Stocks In India In June 2025- NALCO, Hindalco, and Vedanta, Among Others.

Conclusion

Hindalco’s acquisition of AluChem represents a strategic step toward expanding its global specialty alumina footprint and diversifying into higher-value segments. While the deal strengthens its position in the North American market and supports long-term growth plans, its success will depend on integration efficiency and evolving market demand across sectors like electronics and mobility.

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