Hindalco Industries

The opinions expressed here are those of the author, a columnist for Reuters

By Andy Home

LONDON, Oct 2 (Reuters) - What price alumina?

The market for the raw material needed to produce aluminium is both huge and highly opaque despite the best efforts of both exchanges and price reporting agencies.

The London Metal Exchange (LME) launched an alumina contract in 2019 but it hasn't traded since early 2020. The CME's product, trading since 2017, has seen only sporadic activity.

The only liquid alumina futures contract is that traded on the Shanghai Futures Exchange. But it has been prone to bouts of speculative excess and isn't much use to Western operators looking to hedge their price risk.

This is becoming an ever more problematic issue as alumina and aluminium prices follow increasingly divergent paths.

Indian producer Hindalco Industries HALC.NS is leading the industry response with a commitment to channel its spot tenders through digital platform Metalshub.

The aim is to "support greater transparency, broader market participation, and robust price discovery."

The LME will be paying particularly close attention.

PRICING PUZZLE

Until 15 or so years ago, alumina was priced as a percentage of the aluminium price, which made a lot of sense given the mutual market dependency of raw material and finished product.

US producer Alcoa AA.N, however, had other ideas and led a charge to break the linkage in favour of prices determined by spot sales. These, it was hoped, would become indices underpinning futures trading.

Both the LME and CME contracts work exactly like that, referencing assessments published by Platts, part of S&P Global.

The problem then, as now, is that there is very little spot business to assess.

Global metallurgical alumina production last year was 146 million metric tons, according to the International Aluminium Institute.

Much of that, though, is vertically integrated with captive smelters. Hindalco reckons only 55-60 million tons are available for third-party trading, and only 10% of that tonnage is sold through the spot market.

Moreover, many traders are loath to disclose their transactions. Indeed, Hindalco itself has kept its tenders highly confidential in the past.

This leaves pricing agencies chasing shadows and the industry reliant on a limited subset of sales for benchmarks used in higher-volume, longer-term contracts.

Hindalco's allocation of tons for digital tendering is precisely what the alumina market has been lacking. The resulting prices will be based on actual transactions rather than voluntarily reported numbers.

JOINING THE DOTS

That, though, is only one component of the potential pricing revolution.

Metalshub has been working with the LME for some time on a similar template to generate transaction-based prices for low-carbon "green" nickel.

It has also been collaborating with LME Insight, part of Commodity Pricing and Analysis Ltd (CPAL). The new pricing agency began operations in Dubai at the end of last year.

CPAL is, like the LME itself, owned by Hong Kong Exchanges and Clearing 0388.HK.

There are clearly quite a lot of potential synergies here. Hindalco tenders alumina. The prices are captured by Metalshub and then fed to LME Insight for inclusion in a new alumina price index. The index can then be "futurised" by the LME to relaunch a new-look alumina contract.

It's perhaps telling that Hindalco's press release included comments from not just the head of its alumina business, Saurabh Khedekar, and Metalshub Managing Director Dr. Sebastian Kreft, but also Hugo Brodie, the LME's head of sustainability and physical market development.

"The development of independent, transaction-led price references will bring greater pricing transparency and overall market efficiency," according to Brodie.

The LME evidently has a stake in a positive outcome.

DIFFERENT PATHS

Alumina certainly merits a better pricing mechanism, particularly as the gap with aluminium is growing ever wider.

The Iran war has reduced Gulf metal production by an annualised 2 million tons, sending aluminium prices higher.

The flip side is reduced demand for alumina, which is weighing on an already weak market.

But the disconnect was already taking shape last year, reflecting a changing aluminium production landscape.

China's smelter capacity cap was never accompanied by a similar mandate on aluminium refineries, meaning while aluminium production growth has slowed, that of alumina hasn't.

Oversupply has been exacerbated by rapidly rising production in Indonesia, where alumina output is also running ahead of smelter demand.

Guinea's ambition to leverage its bauxite resources into alumina plants adds another layer of disruption to traditional trade flows.

This is a fast-evolving industry that needs both better pricing and a way of hedging price risk.

Between them, Hindalco, Metalshub and the LME think they might have an answer.

(The opinions expressed here are those of Andy Home, a columnist for Reuters.)

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(Writing by Andy Home; Editing by Marguerita Choy)

(([email protected], 44-207-542-4412 and on Twitter https://twitter.com/AndyHomeMetals))

By Sarita Chaganti Singh and Sethuraman N R

NEW DELHI, Sept 26 (Reuters) - India has ordered more than 100 captive coal-fired power plants to operate at maximum capacity from October 1 through year-end to meet what it expects will be a rise in electricity demand.

• The federal power ministry's order, invoked under emergency provisions of the Electricity Act, applies to plants with installed capacity of at least 50 megawatts

• The aim is to meet an "expected rise in electricity demand in the coming months," showed the order dated September 25 and seen by Reuters

• Nearly 40% of coal-fired plants are operating with critically low fuel stock due to a surge in power demand as the El Niño climate phenomenon raises temperatures more than usual

• The plants primarily serve industrial facilities such as aluminium smelters, steel manufacturers, cement factories and oil refineries

• The power ministry has directed generators to sell surplus electricity through power exchanges

• The order covers 112 plants belonging to companies including Vedanta VDAN.NS, Tata Steel TISC.NS, Hindalco Industries HALC.NS, JSW Steel JSTL.NS, UltraTech Cement ULTC.NS, Reliance Industries RELI.NS, Indian Oil IOC.NS, Bharat Aluminium BHLNO.UL, Hindustan Zinc HZNC.NS and Nayara Energy

• The ministry has ordered plants to report weekly to the Central Electricity Authority detailing generation, captive consumption, power sales, available capacity and coal stocks

• Separately, the ministry has extended an earlier emergency order requiring Tata Power's TTPW.NS imported coal-fired plant in Mundra, Gujarat, to operate at full capacity until December 31, citing the demand situation

• Section 11 of the Electricity Act allows the government, under extraordinary circumstances, to direct generators to operate power stations in accordance with its instructions

(Reporting by Sethuraman NR and Sarita Chaganti Singh; Editing by Christopher Cushing)

(([email protected]; (+91 9945291420); Reuters Messaging: [email protected]))

By Neha Arora

NEW DELHI, Sept 24 (Reuters) - Indian copper producers have urged the government to reduce the indirect goods and services tax (GST) on copper products to 5% from 18%, arguing that the current rate locks up more than 490 billion rupees ($5.11 billion) in working capital.

• The petition by Bharat Metal Exchange (BME) and copper producers including Hindalco Industries HALC.NS, Vedanta Ltd VDAN.NS, billionaire Gautam Adani's Kutch Copper Ltd and Hindustan Copper HCPR.NS was sent to the GST Council, chaired by the federal finance minister, on September 22. The letter was shared by BME with Reuters.

• "The current 18% GST rate immobilises critical working capital across an unusually long (four to five months) processing and conversion cycle," the letter said.

• The tax burden leaves little for procurement of raw materials and other business expenditures given rising copper prices, an official with BME said.

• Copper producers have committed 440 billion rupees in capital expenditure by 2030 that would create an estimated 45,000 jobs, BME's letter said.

• Copper prices on the London Metal Exchange touched a record high of $14,875 a metric ton earlier this month.

• India, which is the world's second-biggest refined copper importer, may have to import 91% to 97% of its copper concentrates by 2047, according to the government.

• The country's copper imports rose 4% to 1.2 million metric tons in fiscal 2025. Demand is expected to climb to 3 million metric tons to 3.3 million metric tons by 2030 and 8.9 million metric tons to 9.8 million metric tons by 2047, the government has said.

($1 = 95.9250 Indian rupees)

(Reporting by Neha Arora; Editing by Diti Pujara)

(([email protected]; X: neha_5;))

Sept 15 (Reuters) - Digital platform Metalshub said on Tuesday it has partnered with Hindalco Industries HALC.NS to launch a digital tendering process for spot alumina sales, with the first tender expected between October and December 2026.

• Hindalco partnered with Germany-based Metalshub to use structured, competitive digital bidding for metallurgical-grade alumina spot sales.

• Alumina, the main raw material used to make aluminium, is mostly sold through long-term contracts rather than on the spot market. Spot assessments are often based on surveys, not confirmed transactions, Metalshub said.

• The companies said the process would allow a wider pool of qualified buyers to submit confidential bids through competitive request-for-bid events.

• The platform generates transaction data from competitive bidding, the release said, adding that digitalisation has increased liquidity and improved commercial outcomes in markets including lithium and industrial minerals.

• Metalshub is also working with the London Metal Exchange and Commodity Pricing and Analysis Ltd (CPAL) on transaction-based price discovery for critical raw materials, including alumina, it said.

(Reporting by Vedika Thorat in Bengaluru; editing by David Gaffen)

(([email protected];))

Aug 21 (Reuters) - Grasim Industries Ltd GRAS.NS:

• UHG HOLDINGS IFSC INCORPORATED IN IFSC AT GUJARAT INTERNATIONAL FINANCE TEC-CITY

Further company coverage: GRAS.NS

(([email protected];;))

** India's Hindalco HALC.NS and National Aluminium Co NALU.NS jump 3% and 7%, respectively

** HALC and NALU hit two-month highs of 1,087.5 rupees and 422.2 rupees

** Aluminium prices on London Metal Exchange rose for seventh session to seven-week high on Tuesday, as fears of tight inventory and continued supply deficit boosted the light metal MET/L

** Higher prices are positive for aluminium companies as they boost their margins

** HALC and NALU top pct gainers on benchmark Nifty 50 .NSEI and Nifty 500 .NIFTY500, respectively

** YTD, HACL and NALU up 21.7% and 32.6%

(Reporting by Vivek Kumar M)

(([email protected];))

By Neha Arora

NEW DELHI, Aug 10 (Reuters) - State-run Hindustan Copper HCPR.NS plans to sell copper concentrate produced by mines it is acquiring from Chile's Codelco to Hindalco HALC.NS and Adani, aiming to meet India's growing appetite for the red metal, two sources familiar with the matter said.

It is also in talks to form a joint venture with state-run Codelco to mine and sell copper, three sources said, declining to be identified as the deliberations were confidential.

Hindustan Copper, Coal India COAL.NS and NTPC Mining are in discussions to secure four copper mining blocks from Codelco, India's mines secretary said in April.

Last year, Hindustan Copper signed a preliminary agreement with Codelco about looking at mutually beneficial opportunities in exploration and mining. In May this year, it signed a non-disclosure agreement with Codelco and appointed a deal advisor.

It did not respond to a Reuters request for comment. It has previously denied that it is in talks about a joint venture.

Codelco, NTPC Mining and Coal India also did not immediately respond to a Reuters request for comment.

India, the world's second-biggest refined copper importer, may have to import 91% to 97% of its copper concentrates by 2047, the government has said.

Hindalco, an Aditya Birla Group-owned firm, is one of India's biggest aluminium and copper producers. The Adani conglomerate runs Kutch Copper, a $1.2 billion smelter in the western state of Gujarat that it says is the world's biggest single-location plant of its type.

According to two of the sources, due diligence is ongoing and Hindustan Copper is open to having partners for the JV such as Coal India and NTPC Mining.

Early this year, a technical team from Hindustan Copper and executives from NTPC Mining and Coal India visited Chile, the sources said, adding that it would still take a decade before mining could begin and concentrate is produced.

India plans to include a chapter on copper in free trade pact talks with Chile to secure a fixed quantity of copper concentrate, the government said last year.

India produces an estimated 573,000 metric tons of refined copper annually but demand is much greater at around 1.8 million tons.

(Reporting by Neha Arora; Editing by Edwina Gibbs)

(([email protected]; X: neha_5;))

Aug 7 (Reuters) - Hindalco Industries Ltd HALC.NS:

• Q1 CONSOL NET PROFIT 70.13 BILLION RUPEES

• Q1 CONSOL REVENUE FROM OPERATIONS 848.25 BILLION RUPEES

• ONE-TIME CHARGE OF 22.99 BILLION RUPEES IN Q1

Further company coverage: HALC.NS

(([email protected];;))

** Shares of Hindalco Industries HALC.NS down 2% at 1,019.2 rupees

** Co's U.S.-based unit Novelis, which contributes to more than half of total revenue, reported a 71% surge in net income

NOVELIS FIRE-INCIDENT DRAG FADING, DEBT STILL RISING

** Emkay Global ("add", PT: 1,150 rupees) says Novelis' insurance recoveries expected to more than offset residual fire-related costs going forward, and working capital should unwind, aiding cash flows

** Emkay Global says scrap spreads provided Novelis meaningful tailwind in Q1, but unlikely to sustain at current levels

** Jefferies ("hold", PT: 1,075 rupees) flags sharp 17% q/q rise in net debt, driven by cash impact of fire incidents, increased working capital requirements amid higher aluminium prices

(Reporting by Anuran Sadhu in Bengaluru)

(([email protected]; +91 8697274436;))

By Neha Arora

NEW DELHI, July 24 (Reuters) - Canadian climate technology developer Enervoxa plans talks with India's Vedanta VDAN.NS, Hindalco Industries HALC.NS and state-run NALCO NALU.NS as it looks to set up a processing plant in the country to extract rare earths from a waste byproduct of aluminium production.

A commercial-scale plant would cost around $250 million to $350 million and could be financed through a combination of strategic equity and project financing, Enervoxa Chief Executive Vandit Verma told Reuters. The company is looking at potential locations in eastern India for the project, he said.

Recovering rare earth concentrates from bauxite residue — a byproduct of aluminium production known as red mud — is a relatively new commercial application that has gained momentum amid growing geopolitical concerns over China's dominance of rare earth processing.

Rare earth elements are essential to technologies spanning mobile phones, electric vehicle motors and defence applications such as cruise missiles.

India holds substantial rare earth reserves but lacks industrial-scale facilities capable of processing the minerals to high purity levels. The country is also the world's second-largest aluminium producer and its third-biggest consumer.

Enervoxa has spent eight years developing its own process to recover rare earths from red mud, Verma said in an interview on Wednesday.

In addition to aluminium producers, Enervoxa plans to approach engineering companies, steel manufacturers and critical minerals processing companies to develop an integrated value chain for the products recoverable from red mud, which also include iron oxide, coagulants, pigments and titanium-bearing materials.

The company also plans to seek Indian government assistance, Verma said.

India's Jawaharlal Nehru Aluminium Research Development and Design Centre, along with other stakeholders under government think tank NITI Aayog, is conducting research into metal extraction and rare earth element enrichment from red mud, the government said last year.

Enervoxa's project could involve either full processing of red mud within India or production of a rare earth concentrate for refining at a dedicated downstream facility, Verma said.

The company is currently focused on evaluating commercial opportunities with companies in India, North America, Southeast Asia and other alumina-producing regions, he said.

(Reporting by Neha Arora; Editing by Mayank Bhardwaj and Kevin Buckland)

(([email protected]; X: neha_5;))

July 11 (Reuters) - India's Aditya Birla Group has proposed investing an additional $1.26 billion to triple the capacity of its Kansariguda alumina refinery in Odisha to 3 million metric tons per annum, the state government said on Saturday.

The expansion, to be executed by the group entity Hindalco Industries HALC.NS, takes the total proposed investment in the refinery to about $2.1 billion, the statement said.

($1 = 95.3200 Indian rupees)

(Reporting by Jatindra Dash; editing by Barbara Lewis)

(([email protected];))

June 19 (Reuters) - Hindalco Industries Ltd HALC.NS:

• HINDALCO - COMMISSIONS ALUMINIUM BICYCLE COMPONENT FACILITY AT CHAKAN, PUNE

Source text: ID:nBSE4nZCNR

Further company coverage: HALC.NS

(([email protected];))

.

** UBS initiates metals maker Hindalco HALC.NS with "Buy" and PT of 1,325 rupees

** Positive view is based on high metal prices, turnaround at its global subsidiary Novelis, and scheduled completion of key growth projects

** Brokerage expects Hindalco's upstream aluminium business to benefit from higher realizations and a structurally low cost base, with LME aluminium CMAL3 projected to remain above $3,000/tonne through FY27-29E, driving a 26% EBITDA CAGR over FY26-28E

** Forecasts significant improvement in Novelis operations following a challenging FY26, with volumes normalizing and margins expanding from $462/tonne in FY26 to $512-542/tonne in FY27-28E

** Says despite HALC's substantial capex pipeline, strong operating cash flow is expected to support deleveraging over the medium term

** Stock rated "Hold" on average by 30 analysts; median PT at 1,110.5 rupees - LSEG compiled data

** YTD, stock up 15.2% vs Nifty Metal .NIFTYMET index up 18.2%

(Reporting by Mridula Kumar in Bengaluru)

(([email protected];))

Adds background and details in paragraphs 5-8

June 10 (Reuters) - Novelis said on Wednesday it had restarted production at its Oswego, New York facility, a plant key to Ford's F.N F-150 pickup truck line, months after two fires halted operations.

The aluminum supplier said it was working closely with customers to ramp up supply.

While Novelis also supplies other automakers, including Stellantis STLAM.MI and General Motors GM.N, Ford is a major consumer because its flagship F-series trucks largely use aluminum bodies.

The fires spurred supply bottlenecks, which led Ford to cut its 2025 profit forecast and flag a charge of up to $2 billion.

"Restarting the Oswego hot mill is an important step forward for our operations and, most importantly, for our customers," Novelis CEO Steve Fisher said on Wednesday.

Novelis had been leaning on plants in South Korea and Europe to make up for the downtime from the New York plant and support aluminum production.

In May, India's Hindalco Industries HALC.NS, which owns Novelis, said the disruptions cost it roughly $437 million in the fourth-quarter.

(Reporting by Nathan Gomes in Bengaluru; Editing by Vijay Kishore and Tasim Zahid)

(([email protected];))

June 4 (Reuters) - Hindalco Industries Ltd HALC.NS:

• HINDALCO - LAUNCHES ETERNIA FLAGSHIP EXPERIENCE CENTRE IN NEW DELHI

• HINDALCO - TARGETS 10 BILLION RUPEES REVENUE BY FY29

Source text: ID:nBSE1prRhW

Further company coverage: HALC.NS

(([email protected];))

** Shares of metals maker Hindalco HALC.NS rise 8% so far this week, poised for a second consecutive weekly gain, if current trend holds

** Stock has risen in eight of the past nine weeks

** Shares rise as aluminum prices hit over four-year high during the week

** Company on Monday projected steady Novelis earnings, strong domestic demand in 2027

** BOB Capital Markets says outlook is positive, supported by improved domestic demand and incremental volumes from expansion projects over FY27-29

** Eleven of 30 brokerages rate the stock "buy" or higher, 13 "hold" and six "sell" or lower; their median PT is 1,105 rupees

** YTD, stock up 29.3% vs an 8.7% fall in Nifty 50 Index .NSEI

(Reporting by Abhinav Parmar in Bengaluru)

(([email protected];))

May 25 (Reuters) - Hindalco Industries Ltd HALC.NS:

• INDIA'S HINDALCO EXEC: CONFIDENT THAT WE WILL RETAIN CUSTOMERS INCLUDING FORD

• HINDALCO EXEC: 2027 WILL BE AN INFLECTION YEAR FOR NOVELIS

• HINDALCO EXEC: RAMPING UP PRODUCTION FOR ALUMINIUM CAN SHEETS

• HINDALCO EXEC: EXPECT RAW MATERIALS COSTS TO GO UP BY 5%

Further company coverage: HALC.NS

(([email protected];))

** Hindalco Industries HALC.NS shares rise 0.5% to 1,105 rupees ahead of Q4 results

** Analysts expect aluminium maker to post 14.4% fall in quarterly net income, with 11.6% rev growth YoY - LSEG data

** Phillip Capital says the stock may have limited upside in the near term

** While the long-term outlook remains positive, near-term challenges and a likely moderation in Utkal Alumina's performance could weigh on the stock after a strong Q4, it added

** Ambit Capital says the first half of FY27 should be strong, helped by seasonal demand, higher beverage-can demand linked to FIFA events, and better margins from scrap-based aluminium

** However, it warns of risks ahead, including tighter scrap supply as Oswego and Bay Minette increase production, stronger demand for recycled aluminium in China, and possible demand weakness if prices stay too high

** YTD, HALC up 24% vs 9.5% fall in Nifty 50 Index .NSEI

(Reporting by Abhinav Parmar in Bengaluru)

(([email protected];))

** India's Nifty 50 .NSEI down 0.1% and BSE Sensex .BSESN 0.2% lower

** Indexes fell as much as 0.9% earlier in the session

** Oil-to-telecom conglomerate Reliance Industries RELI.NS and aluminium company Hindalco HACL.NS lead gains

** HALC jumps 3.7%, top index gainer, after subsidiary Novelis reports higher operating profit and says New Jersey plant to restart in next few weeks

** Index heavyweight RELI up 1%, set to snap three-session losing streak

** Fifteen of the 16 major sectors trade lower; broader small-caps .NIOFSMCP100 and mid-caps .NIFMDCP100 down 0.3% and 0.1%, respectively

** Surge in global bond yields dents outlook for equities, while caution prevails over Iran war GLOB/MKTS

** Zee Entertainment Enterprises ZEE.NS slides 6% after reporting quarterly loss

(Reporting by Vivek Kumar M)

(([email protected];))

Adds dropped word 'president' in paragraph 10

By Neha Arora

NEW DELHI, May 19 (Reuters) - India's top copper producers, including Adani, Vedanta and Hindalco, are opposing plans to make copper wire made by secondary refiners acceptable under government quality standards, saying products made from scrap pose safety risks.

The dispute has triggered a months-long standoff between large primary producers and smaller refiners over fire-refined high conductivity (FRHC) copper rods, which are mainly used in electrical applications such as transformers, power cables and wires.

Large producers argue that copper rods from smaller refiners, which mostly use scrap as raw material, should not be under the same standards because the products may not consistently meet the purity levels required for electrical applications.

"Indian fire (secondary) refiners may not have the requisite technology and hence are incapable of manufacturing the FRHC grade consistently," the large producers said, according to the minutes of a March 23 meeting of the Bureau of Indian Standards (BIS) that was reviewed by Reuters.

The state-run BIS oversees product quality standards in India.

"Many of the manufacturers are not refining and just re-melting scrap to make substandard product," the minutes said of the views expressed by the Indian Primary Copper Association (IPCPA).

The IPCPA's partners include Adani ADEL.NS, Vedanta VDAN.NS, Hindalco HALC.NS and Hindustan Copper HCPR.NS.

In the minutes, secondary producers defended their production method, saying fire refining is used to control the chemical composition of copper and meets conductivity requirements used internationally for cable manufacturing.

The BIS did not respond to requests from Reuters for comment.

IPCPA President Rohit Pathak said the industry body was seeking separate standards for FRHC copper because "fire refining which uses copper scrap as the primary input, cannot remove impurities to achieve 99.99% purity required for electrical applications."

"Lower purity will increase overheating and fire risks. A separate standard will help ensure safe usage," Pathak, who is also CEO of Hindalco's copper business, told Reuters in a statement.

India's total demand for copper rods in the fiscal year to end-March 2025 was estimated at 1.2 million metric tons, of which imports accounted for 0.1 million tons, while FRHC copper rod production stood at 0.4 million tons, according to industry estimates.

Imports are mainly sourced from the United Arab Emirates, although supplies have been disrupted this year by the Middle East conflict.

As a result of the dispute, about 400,000 tons of copper wire rod is currently being traded outside the quality control regime, an industry source said.

(Reporting by Neha Arora; editing by Mayank Bhardwaj and Raju Gopalakrishnan)

(([email protected]; X: neha_5;))

By Neha Arora

NEW DELHI, May 11 (Reuters) - India and Peru will probably hold the next round of talks on a proposed free trade pact next month, a senior Peruvian diplomat told Reuters, adding that a deal could be signed by the end of the year.

"In principle, in June we are going to resume the negotiations," Javier Paulinich, Peru's ambassador to India, said.

Peru, the world's third-largest producer of copper, is also negotiating a chapter on critical minerals with India, Paulinich said.

India's Ministry of Commerce and Industry did not immediately respond to an emailed request for comment.

India's Hindalco Industries HALC.NS was also looking to buy copper from Peru, Paulinich said.

"I think they are trying to negotiate," he said.

Hindalco did not immediately respond to a Reuters email seeking comments.

Peru produced about 2.7 million metric tons of copper in 2024 and attracted $4.96 billion in foreign investment in the sector.

Anticipating a surge in demand and potential supply shortfalls, India, the world's fastest-growing major economy, has urged its mining companies to invest overseas to secure copper supply chains and manage possible disruptions, according to a government policy document published last year.

India, the world's second-biggest importer of refined copper, may have to source 91% to 97% of its copper concentrate requirements from overseas by 2047, according to official estimates.

India's copper imports rose 4% to 1.2 million metric tons in the fiscal year to March 2025. Demand is expected to climb to 3 to 3.3 million tons by 2030 and 8.9 to 9.8 million tons by 2047, the government has said.

(Reporting by Neha Arora; Editing by Muralikumar Anantharaman)

(([email protected]; X: neha_5;))

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By Ira Dugal

May 5 - Sun Pharmaceutical's mammoth all-cash bid for U.S. drugmaker Organon & Co last week is yet another instance of Indian companies making bolder bets overseas, backed by the strength of their balance sheets.

But history shows that returns from these cross‑border deals are not always assured. With global M&A now becoming a strategic necessity rather than just offering bragging rights, is that likely to change? Write to me with your views on Indian companies' growing global ambitions at [email protected].

And, two executives are in the running for the post of Air India CEO. Scroll down for more on that.

THIS WEEK IN ASIA

• While Asia and Europe scramble for natural gas, the US glut has nowhere to go

• China's central bank guides banks to step up lending in April, sources say

• Investors are running out of time to brace for true oil shock

• One of Iran’s most powerful families founded its largest crypto exchange. It’s used by the IRGC to move millions

NOT JUST AMBITION, BUT A STRATEGIC NEED

From pharmaceuticals to IT, Indian firms across sectors are looking overseas in search of newer markets, products and technologies for their next burst of growth.

Sun Pharma is buying Organon in a deal valued at about $11.75 billion including debt, ‌making it the largest overseas acquisition by an Indian pharma company.

It eclipsed another large overseas bet just months ago by IT firm Coforge to acquire artificial intelligence firm Encora for $2.35 billion, and Tata Motors' purchase of Italian commercial vehicle manufacturer Iveco for $4.45 billion in July 2025.

The first quarter of 2026 has seen 56 outbound transactions valued at $3.9 billion, according to data from advisory firm Grant Thornton Bharat LLP. In 2025, 162 such deals worth $18.2 billion were closed.

Proximity to customers, control over distribution and insulation from trade barriers are important drivers of outbound M&A, said Bhavesh Shah, managing director and head of investment banking at Mumbai-based investment bank Equirus Capital.

"What’s changed is the rise in capability-led acquisitions, whether it’s R&D, specialty products, or technology," Shah said. "So earlier it was about global ambition; today it’s more a strategic necessity to stay competitive and de-risk supply chains."

Sun Pharma, for instance, is acquiring a suite of products in women's health with the Organon purchase - a segment projected to have a $600 billion opportunity. Coforge entered the much-in-demand agentic AI space with its acquisition of U.S.-based Encora.

"Together, the two deals capture the full spectrum of India's outbound ambition: buying capability where it does not exist domestically and buying global scale where organic growth would take decades," said Sumeet Abrol, partner and national leader for deals at Grant Thornton Bharat.

GROWTH OF FINANCING OPTIONS

Corporate India's overseas ambitions have ebbed and flowed over the years, and some have left individual companies burdened with debt.

The buyout rush of the early 2000s - which saw Tata Steel acquire Anglo-Dutch group Corus for $12 billion, Tata Motors buy out iconic British brands Jaguar and Land Rover for $2.3 billion and Hindalco acquire Canada's Novelis for $6 billion - was one of the reasons that led to excess leverage on corporate balance sheets.

But after a decade-long clean-up, debt on most Indian corporate balance sheets is low. The median debt-to-EBITDA for rated Indian corporates was at 0.5 times as of March 2026, while interest coverage ratio was 5 times, according to rating agency CRISIL.

Recent deals don't immediately raise red flags, analysts said.

"Funding has been quite disciplined this cycle. It’s a good mix of internal accruals and moderate leverage," said Equirus' Shah.

Transactions such as Tata Motors' purchase of Iveco have also seen the increased use of guarantees to raise debt in overseas units. Tata Motors issued a $2.26 billion guarantee to back financing for the deal.

"The availability of debt financing on target balance sheets in overseas markets (LBOs) with no or limited recourse to acquiring balance sheets in India is also fueling some of this activity while keeping the Indian balance sheets deleveraged," said Grant Thornton's Abrol, adding that these financing options are increasingly available to even mid-market companies.

Abrol, however, said the deal struck by Sun Pharma is a transaction that needs to be "watched carefully" for balance sheet discipline.

"Post-transaction, the combined entity's net debt-to-EBITDA is projected at 2.3x — manageable, but a meaningful departure from Sun Pharma's historically net cash positive position," he said.

The company said it aims to bring down debt "soon", with analysts expecting a three-four year period for debt reduction.

MARKET MATTERS

Foreign investors have continued to offload Indian shares, selling a net $6.5 billion in April after dumping $12.7 billion in March. With no quick resolution to the war between U.S.-Israel and Iran, investors expect earnings growth in India to slow, making valuations unattractive. Read here.

The persistent outflows have pushed the rupee back down to record lows despite steps taken by the central bank to support the currency.

The Indian central bank is mulling steps to draw dollar flows, Reuters reported on Monday.

THIS WEEK'S MUST-READ

The Tata Group has zoomed in on two possible options for the post of Air India CEO, which fell vacant when Campbell Wilson resigned last month. Singapore Airlines executive Vinod Kannan and Air India's commercial head Nipun Aggarwal are the two frontrunners to become the new CEO of Air India, Reuters' Aditya Kalra and Abhijith Ganapavaram report.

(Reporting by Ira Dugal; Editing by Muralikumar Anantharaman)

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April 30 (Reuters) - India's state-owned National Aluminium Company (NALCO) NALU.NS reported a 16.6% fall in fourth‑quarter profit on Thursday, as higher costs and weaker alumina prices weighed on earnings.

• The company is India's largest producer of alumina, or aluminium oxide, used in the production of aluminium and as a catalyst in petrochemical refining.

• Net profit fell to 17.22 billion rupees ($181.02 million) in the quarter ended March 31, from 20.67 billion rupees a year earlier.

• Revenue from operations declined 5% to 50.13 billion rupees.

• Expenses rose 10% to 28.98 billion rupees, partly due to higher raw material and operating costs.

• Analysts expected weaker alumina prices to limit margins at the company's alumina unit, despite support from firm aluminium prices, which rose on global supply disruptions.

• Chinese domestic alumina prices fell about 5.5% quarter-on-quarter in the March quarter, as escalating U.S.-Israel tensions with Iran since late February weighed on demand from China, the world's largest consumer, according to S&P Global.

• Revenue from the firm's second-biggest segment, chemicals, fell nearly 38%.

• Rival Vedanta VDAN.NS reported a 92.3% rise in profit on Wednesday, while Hindalco Industries HALC.NS is yet to report.

($1 = 95.1275 Indian rupees)

(Reporting by Devika Nair in Bengaluru; Editing by Mrigank Dhaniwala and Sonia Cheema)

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April 27 (Reuters) - India has launched an investigation on some aluminium wire products from Malaysia in the backdrop of existing countervailing duties that are set to lapse in September, the government said late on Monday.

A group of companies including Hindalco Industries Limited HALC.NS, Vedanta Limited VDAN.NS and Bharat Aluminium Company had filed an application for a review to ascertain if there is a need for an extension to the duties.

(Reporting by Kanjyik Ghosh and Neha Arora; Editing by Chris Reese)

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By Neha Arora

NEW DELHI, April 21 (Reuters) - A leading industry group representing small and mid-sized firms that recycle metals, plastics, e-waste, rubber and glass has sought intervention from the Prime Minister's Office (PMO) to remove an import tax on aluminium scrap, citing rising costs and strong demand, according to a letter reviewed by Reuters.

India, a major global buyer of aluminium scrap, imposes a 2.5% tariff on the product and relies heavily on supplies from the European Union, the U.S. and the Middle East.

The EU's planned export curbs and disruptions from the U.S.-Israeli war on Iran have tightened supplies, industry officials said.

Aluminium scrap is used mainly by the auto sector as well as in construction, foils and cables.

"MSMEs (Micro, Small and Medium Enterprises) depend on high-quality imported scrap to meet technical specifications, but the 2.5% basic customs duty raises input costs and strains working capital, limiting access to reliable recycled material," the Material Recycling Association of India (MRAI) said in a March 26 letter to the PMO.

The PMO and the MRAI did not respond to Reuters requests for comment.

Scrapping of import tariff would reduce costs and improve competitiveness, the letter said.

The secondary sector that relies on scrap contributes nearly 40% of India's total aluminium supply of around 2.2 million metric tons per year and it meets 85% of its scrap needs through imports, the letter said.

In a report released last year, the mines ministry said India's high dependence on imported scrap could be attributed to the low availability of domestic scrap.

The ministry also said high scrap imports posed a problem for primary producers of aluminium given a surge in shipments in recent years.

However, the MRAI said in its letter that removing the import tariff would promote downstream manufacturing without adversely impacting primary producers.

India's leading primary aluminium producers include Vedanta VDAN.NS, Hindalco Industries HALC.NS and state-owned National Aluminium NALU.NS.

Besides being a resource for domestic producers, scrap has a vital role in the sector's decarbonisation efforts, since recycling aluminium uses 95% less energy than producing metal from mined bauxite.

"With aluminium consumption expected to reach 8.5-9.0 million metric tons by FY30 and recycled content mandates coming in, imports are likely to remain crucial unless domestic scrap collection and urban mining improve significantly," commodities consultancy BigMint said.

(Reporting by Neha Arora; Editing by Thomas Derpinghaus)

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** Shares of India's Hindalco HALC.NS up 3.45% at 1012.75 rupees and National Aluminium Co NALU.NS rise 1.35% to 423.40 rupees

** HSBC raises Hindalco PT to 1,310 rupees from 1,210 rupees and NALCO PT to 455 rupees from 425 rupees; reiterates "buy" ratings

** Brokerage cites persistent global aluminium supply-side challenges driven by Middle East disruptions and tighter availability outside China

** Expects higher aluminium prices, weaker rupee and cost tailwinds to drive 6%–10% EPS upgrades for Indian aluminium producers

** J.P. Morgan also reiterates positive view on aluminium producers as supply disruption risks lift prices; estimates a 1.9-million-tonne global deficit in 2026, largest in 26 years

** YTD, HALC up 10.32% and NALU gains 33%

(Reporting by Surbhi Misra in Bengaluru)

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April 8 (Reuters) - The following are the top stories in the Wall Street Journal. Reuters has not verified these stories and does not vouch for their accuracy.

- The U.S. government has so far rejected requests from Ford F.N and other U.S. automakers for relief from aluminum tariffs after fires at a Novelis plant created supply bottlenecks for the automaker.

- Billionaire Elon Musk has amended his lawsuit against OpenAI to ask that any damages he might win be awarded to the company’s charitable arm rather than to himself.

- After cooling gradually for much of the past year, the labor market may be showing signs of stabilizing, Federal Reserve Governor Philip Jefferson said.

- The U.S. State Department is negotiating with countries in Africa and Asia to relocate over 1,100 Afghans stranded in Qatar after U.S. travel restrictions.

- GoPro GPRO.O plans to cut 23% of its workforce, as the company struggles to return to profitability.

- Hong Kong conglomerate CK Hutchison 0001.HK has started arbitration against A.P. Moeller-Maersk MAERSKb.CO after Panama seized its port assets in the country.

(Compiled by Bengaluru newsroom)

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** Shares of Vedanta VDAN.NS and Hindalco HALC.NS climb 2.6% and 3%, respectively - top gainers on metals index .NIFTYMET

** JPMorgan upgrades VDAN and HALC to "overweight" from "neutral," citing sustained strength in aluminium prices amid global supply risks due to the ongoing Iran war

** The Middle East conflict has put us on the edge of a bullish supply driven event horizon and recent smelter outages will likely last for months even after shipping through Strait of Hormuz eventually returns, says brokerage

** JPM sees attractive risk-reward into FY27 for VDAN and raises PT to 850 rupees from 680 rupees

** Adds, HALC expected to benefit from higher aluminium and copper prices and recovery at Novelis from FY27; PT raised to 1,125 rupees from 875 rupees

** Avg rating on VDAN at "buy" and HALC at "hold" - data compiled by LSEG

** YTD, VDAN up 17.5% and HALC up 7.7%; metals index gains 4.5%

(Reporting by Kashish Tandon in Bengaluru)

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By Aditi Shah

NEW DELHI, March 19 (Reuters) - India's automakers and parts suppliers are bracing for production slowdowns and assembly-line disruptions as the Iran conflict chokes gas availability, threatening growth in the world's third-largest car market.

Some parts suppliers to India's leading carmakers like Maruti Suzuki, Tata Motors and Mahindra are already reporting a shortage of gas to power operations, an early sign that supply chain issues are developing, according to two dozen executives at car companies, part makers and dealers.

The disruption comes at a time when India's car demand is soaring to record levels, with sales expected to cross 4.5 million units in the current fiscal year to March 31, leaving little excess inventory with manufacturers and dealers.

"At this point in time it is about survival. First and foremost we need to ensure production continues. The buffer stocks will not last long," said a senior executive with a leading carmaker.

INDIA MOST EXPOSED TO WEST ASIA CONFLICT

India relies heavily on the Middle East for energy supplies, importing 50% of its natural gas needs mostly from Qatar, which has been forced to shut its refinery after a wave of Iranian attacks.

Shipments of oil and gas through the Strait of Hormuz have also tanked after Iranian attacks on vessels.

While India is working to secure gas from the U.S., Norway and Russia, the government has prioritised supplies for homes over factories. In auto sector plants, the fuel is critical to high-heat processes like forging and casting, and in the paint shop.

Suppliers Reuters spoke to in India's western and northern car manufacturing belts said production will be managed until end-March. But the stress in the system is showing, with at least four executives saying Tata and Mahindra are operating some factories below capacity.

Mahindra said in a statement that the company has not lost any production this month versus its "plan to date", while a spokesperson for Tata Motors said operations at its plants are "near normal".

Tata said it is working with suppliers to ensure continuity and optimising production where required.

Small and medium manufacturing units, which form the car industry's backbone, are most vulnerable, as they rely more on gas and are unable to switch to other sources quickly.

Kirloskar Ferrous KRFI.BO, a supplier of iron castings, told an Indian stock exchange this week it has stopped some production at a factory in Western India "until further notice".

Metal producer Hindalco HALC.NS declared force majeure to some of its customers last week, warning them of potential disruptions amid gas shortages.

Both companies count Mahindra as a customer. Mahindra did not offer a direct comment about the two suppliers, but said its teams are working on the supply chain and taking action as needed.

CARMAKERS YET TO OFFICIALLY CUT PRODUCTION SCHEDULES

Automakers are operating in a state of high-alert diplomacy with their suppliers to keep assembly lines moving, and have not officially cut production schedules yet.

"We have received some information about challenges in energy supply for our in-house and our suppliers' production operations," said Rahul Bharti, senior executive officer for corporate affairs at Maruti MRTI.NS, India's biggest carmaker.

"As of now, our operations are running as per plan," he told Reuters.

S&P Global Mobility has already begun slashing its India outlook, now forecasting 6.3% growth in light vehicle production for 2026, down from 7.4% projected before the war.

"Depending on when the conflict ends, we may need to further revise the forecast," said S&P's Gaurav Vangaal.

(Reporting by Aditi Shah; Editing by Jan Harvey)

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