Hindalco Industries to Sell Kalwa Land Parcel for Rs 595 Crore in Debt Reduction Move

13 Jul 2023 , 10:20 AM

The board of directors of Hindalco Industries Limited has given their approval for the sale of a 12.95-acre land parcel located in the Kalwa MIDC area of Maharashtra’s Kalwa. The transaction is valued at Rs 595 crore.

Hindalco aims to focus on its core businesses and reduce its debt through the sale. Proceeds from the sale will be utilized for debt repayment and general corporate purposes.

The sale is subject to shareholder approval. Hindalco Industries is a global leader in aluminum and copper production, with headquarters in Mumbai, India. Despite challenging market conditions, the company’s shares closed positively at Rs 424.65 per share.

The Silvassa extrusion factory is anticipated to achieve its maximum capacity by the middle of the fiscal year 2024-2025. Meanwhile, the copper smelter is temporarily closed for maintenance and is scheduled to resume operations in mid-June 2023, which will have an effect on the copper margins for the first quarter of the fiscal year 2023-2024.

Hindalco Industries faced sluggish earnings performance due to challenging macroeconomic conditions. The company has invested Rs 609 crore in constructing new extrusion units in Silvassa.

Hindalco Industries has expanded through acquisitions, including the Kuppam facility and Ryker Base Private Limited. Hindalco Industries Limited is the metals flagship company of the Aditya Birla Group, valued at USD 26 billion.

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