Mumbai: Aditya Birla Group has earmarked at least $3 billion for acquisitions in its aluminium business Hindalco Industries Ltd, at least two people aware of the development said.
The funds will be used to acquire assets in the aluminium space with an eye on increasing focus on the downstream sector—in a shift from the midstream business that Hindalco currently operates in, said one of the two people cited above, requesting anonymity as the talks are private.
“The company has already started scouting for assets in developed markets such as Europe and the US. They could end up spending around $3-5 billion if they find the right assets. They want to add more value-added products to their portfolio as they plan to increase focus on downstream products,” he added. The move will boost Hindalco’s overseas business, he said.
In 2007, Hindalco made its biggest downstream bet when it acquired US-based aluminium cans and packaging material maker Novelis Inc. for around $6 billion.
Read More- Mint