Hindalco Industries Ltd has approved the acquisition of EMIL Mines and Mineral Resources Ltd (EMMRL), the company that holds the mining lease for the Bandha coal block in Madhya Pradesh. The transaction is valued at ₹48 lakh, and Hindalco will also assume a net debt of ₹1,131 crore.
As of 09:54 AM on May 21, 2025, Hindalco Industries share price was trading at ₹658, a 0.72% decline, with a 2.77% increase over the past 6 months and a 3.98% drop over the past year.
EMMRL is currently a wholly owned subsidiary of Essel Mining and Industries Ltd., which is also part of the Aditya Birla Group. The acquisition is classified as a related-party transaction but is expected to follow arm’s-length pricing norms. The transaction was approved by Hindalco’s board on May 20 and is subject to regulatory and shareholder approvals. It is expected to be completed within six to nine months.
Since its incorporation in 2020, EMMRL has not reported any turnover.
The Bandha block has mineable reserves of approximately 197 million tonnes. It is located around 20 km from Hindalco’s Mahan aluminium smelter and power plant. The block is expected to have a mine life of nearly 45 years and is connected through road, rail, and conveyor systems, making coal transport viable for industrial use.
Hindalco announced the acquisition on the same day it released its Q4 and full-year FY25 results.
Q4 FY25 (Consolidated):
FY25 (Consolidated):
The aluminium upstream segment recorded an EBITDA of ₹16,262 crore. Copper segment EBITDA stood at ₹3,025 crore. The company’s net debt-to-EBITDA ratio improved to 1.06x from 1.21x last year.
Read more: Hindalco Reports 10% Revenue Growth in FY25 Results, Recommends Dividend
Hindalco’s acquisition of EMMRL is aimed at securing long-term coal access for its nearby operations, while the company continues to post growth in both aluminium and copper businesses.
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Published on: May 21, 2025, 1:48 PM IST
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