Jindal Aluminium acquires Indo Alusys’ extrusion plant for Rs 100 crore

Industry:    

Jindal Aluminium Limited has concluded a Rs 100-crore acquisition of the assets of Indo Alusys Industries Limited (IAIL) and commencement production at the revived Bhiwadi plant.

The acquisition of IAIL’s assets covers its manufacturing unit located in the industrial area of Bhiwadi, Rajasthan. About 70 km from the national capital, the location offers strategic access of the northern market to Jindal Aluminium and brings a potential capacity of 14,000 metric tonnes per annum extrusions.

Once fully operational, Jindal Aluminium’s extrusion capacity is expected to rise from 125,000 tonnes to 139,000 tonnes. Apart from helping Jindal Aluminium to add capacity, the IAIL deal helps revive the local economy, benefit community and other stakeholders, the company said.

Jindal Aluminium started production at this newly acquired facility on 6th December, with an initial capacity of 1000 metric tonnes per month, and the company plans to increase it to 4000 metric tonnes per month by the end of March 2022.

“With the growing use of engineered aluminium products in the Indian economy, this acquisition will allow us to better service the needs of the market and build capacity. Such inorganic growth allows us to focus on our core competencies and support the people, society and economy. Further, it strengthens our position as India’s largest aluminium extrusion company and extends our lead in the sector,” Pragun Jindal Khaitan, vice chairman and managing director at Jindal Aluminium Limited was quoted as saying.

Jindal Aluminium is focused on new opportunities in domestic manufacturing and is continuously increasing its share in the export market. The company plans to add capacity through both organic and inorganic options. Notable inclusions in 2020-21 were the addition of a fifth caster to the rolling division leading to its capacity expansion by 25 percent and commissioning one of India’s largest environment-friendly powder coating facilities.

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