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. "

Hindalco has set a production target of 4.60 lakh tonnes of aluminium and 3.60 lakh tonnes of copper and an export target of one lakh tonnes of aluminium and 1.60 lakh tonnes of copper for the current year, he said.

The company has also posted good financial results for the first quarter of 2006-07 mainly because of high prices of aluminium and copper. Birla said the prices of these metals are expected to remain stable.

Despite sharp increase in prices of fuel oil, coal, pitch and bauxite, which pressured margins  for the first quarter of 2006-07, Hindalco reported a 59 per cent jump in net profit at Rs 601.50 crore (Rs 379.20 crore in Q1 '05-06) on 94 per cent higher net sales and operating revenues of Rs 4,273.70 crore (Rs 2,207.10 crore). h  b 

Of the total revenues, aluminium business contributed Rs 1,654.20 crore. Revenues from copper more than tripled to Rs 2,621.70 crore driven by rise in copper prices and profits grew to Rs 97.80 crore (Rs 52.90 crore).