Aditya Birla group to hike Hindalco stake

Our Corporate Bureau
29 July 2006

Mumbai: Hindalco Industries promoter Aditya Birla group will increase its stake in the company from 26 per cent to about 31 per cent via preferential allotment of shares. The promoters will gradually increase their stake in all group companies through capital expenditure of Rs15,000 crore, involving both expansion and greenfield projects, Kumar Mangalam Birla, chairman, Aditya Birla group, told shareholders at the company's 47th annual general meeting.

"The promoters' stake, which is now 25.95 per cent, will gradually be increased through the creeping acquisition route. We are always looking to increase our stake," Birla said.

The current stake of promoters and persons acting in concert in other leading Aditya Birla group companies is also rather low — 25 per cent in Grasim and about 29 per cent in Nuvo.

The group is looking at dynamic growth — both organic as well as inorganic, he said.

Hindalco has signed a memorandum of understanding with the Madhya Pradesh government for a greenfield aluminium smelter. For this, it has also entered into a coal block joint venture with Essar in the state. Hindalco and Essar will hold an equal share in the company, to be called Mahan Coal Company.

Hindalco's subsidiary Aditya Birla Minerals has been listed on the Australian Stock Exchange. Hindalco is also looking at acquiring a copper mine in Africa, he said, adding, " We aspire to be among the top 10 global producers in alumina, aluminium and copper. "