While it may not be commenting on its reported hostile takeover plan of Hindalco, $24 billion Canada-based aluminium giant Alcan has made clear its long- term intentions in India. Its step-down subsidiary Alcan Composites on Tuesday acquired a 76% stake in local aluminium architectural façade company Alukbond for an undisclosed sum.
Alcan Composites is the $800 million business unit of $6-billion Alcan Engineered Products, which is a subsidiary of Alcan Inc.
“At the highest level of Alcan management, there has been concerted efforts to increase Alcan’s presence in the fast-growing markets like India and China,” Steve Hennin, director strategy, Alcan Composites said.
Alukbond is a Rs 20 crore sales company which manufacturers high-end aluminium façade for commercial complexes. It has a capacity to manufacture 1.2 million metres aluminium sheets.
Now renamed Alcan Composites India, the company is aiming for a four and half fold topline growth this year. “In 2-3 years we hope to do business of Rs 160 crore from the Alukbond’s existing plant. We would look at adding another production line in the next 12-18 months,” Hennin said.
Hennin said in two years, a fifth of Alcan Composites’ revenues would come from emerging markets and “not all of it would come through organic growth”, implying that it would consider more inorganic options.
Now that the company has a presence in the exterior façade, Hennin said going forward, it would look at bringing in interior products as well as point of sales products into the domestic market.
Source : DNA India