On 16 May 2007 acquired the India-based Hindalco Industries, a subsidiary of AV Birla Group of companies in the U.S. Canadian aluminum giant Novelis. The acquisition was the result of an agreement reached between Hindalco and Novelis on 10 February, 2007. Hindalco was Novelis for U.S. $ 6 billion to buy in cash, making it the second largest acquisition by an Indian company by then. The acquisition resulted in the formation of a Fortune 500 company – the world’s largest producer of aluminum – and expect … Read more »

On 16 May 2007 acquired the India-based Hindalco Industries, a subsidiary of AV Birla Group of companies in the U.S. Canadian aluminum giant Novelis. The acquisition was the result of an agreement reached between Hindalco and Novelis on 10 February, 2007. Hindalco was Novelis for U.S. $ 6 billion to buy in cash, making it the second largest acquisition by an Indian company by then. The acquisition resulted in the formation of a Fortune 500 company – the world’s largest producer of aluminum – and expects the industry to be cost leader with a presence across the entire value chain of aluminum from mining to final aluminum products. The case provides a general introduction to the aluminum industry, including different products, actors and processes. There are also indirect analysis of the industry and a mention of the critical success factors for the industry. The case covers the growth strategies of Hindalco and Novelis and briefly discussed their competition as well. It also talks in detail about the various synergies of the transaction and ends with the description of the situation post-deal with Novelis turning black due to a variety of reasons.
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from
Aastha Sachdeva,
Madhur depth
R. Srinivasan
Source: Indian Institute of Management Bangalore
20 pages.
Release Date: 1 June 2009. Prod #: IMB303-PDF-ENG
Hindalco’s acquisition of Novelis: The Making of a Giant HBR case solution