Hydro’s Kuppam plant has a 15,000-ton aluminum extrusion capacity and is integrated with advanced value-adding capabilities for surface finishing and fabrication.

Hindalco Industries said Friday that it has signed a definitive agreement with Norway-based Hydro to acquire the Indian aluminum extrusion business for an enterprise worth Rs 247 crore. The company said in a statement that the acquisition comes in Hindalco, an integrated facility located in Copham in the state of Andhra Pradesh, an experienced team of employees and the ability to serve a strong portfolio of reputable clients.

Hydro’s Kuppam plant has a 15,000-ton aluminum extrusion capacity and is integrated with advanced value-adding capabilities for surface finishing and fabrication. Located approximately 120 kilometers from Bengaluru, Kuppam offers aluminum extrusion products and solutions for automotive, building and construction, and industrial applications.

It will expand Hindalco’s presence in southern India, which is the second largest extrusion market in the country. Hindalco is part of the diversified Aditya Birla Group. The acquisition of the Kuppam Factory is a strategic move to expand our presence at the higher end of the value-added market. Satish Pai, Managing Director of Hindalco, said the plant’s range of specialty products will enhance our capabilities in extrusion and cutting-edge manufacturing solutions.

“The acquisition is the latest step in our long-term strategy to increase our downstream business. Over the past year, we have already announced a total capital of Rs 3,730 crore to add terminal capacities in Silvassa and Hirakud. Our recent acquisition of Ryker’s copper wire rod unit for our copper value-added portfolio is in line with our recent acquisition of the copper wire rod unit Ryker for our copper value-added portfolio,” Bai said. Also with this strategy.

The agreement is in line with Hindalco’s strategy to increase downstream capacity to meet growing market demand. The Cobam plant will also serve as a prototype for the upcoming Hindalco extrusion plant in Silvassa in western India.

The aluminum extrusion market in India is expected to grow rapidly from the current level of about 3,73,000 tons to about 8,50,000 tons by 2030. Once commissioned, the Kuppam and Silvassa units are expected to boost the overall extrusion capacity of the company. Hindalco from 60,000 tons to 1.09,000 tons. The company said the deal is expected to close in the next quarter.

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