Hindalco To Acquire 100% Stake In Essel Mining

Hindalco Industries Ltd, a metals flagship company of the Aditya Birla Group, signed an agreement for the acquisition of 100% stake in Ashok Malu’s Essel Mining & Mahan Rail Ltd. EMMRL is a part of Aditya Birla Group’s associate firm Essel Mining & Industries Ltd (EMIL).

The strategic acquisition, which cost ₹48 lakh, will give Hindalco full control of the Bandha coal mine, thereby securing mines to help the company in its long-term fuel security strategy and cost-effective operations at its integrated Muri aluminium facility in Jharkhand and the Mahan aluminium facility in Madhya Pradesh.

Strategic Significance of the Acquisition:

The deal is in line with Hindalco’s strategy to acquire coal mines to feed its plants, lower raw material cost and improve the utilization of its existing facilities. No end-use restrictions are associated with the Bandha mine, which has mineable reserves of around 197Mt and a potential mine life of 45 years, and it is therefore considered a very valuable, long-term energy asset for the company.

“The acquisition is strategic towards backward integration into the coal sector and will further strengthen the company’s raw material security and reduce fuel cost in the long term,” the company said in an intimation on BSE.

Deal Structure and Compliance Framework

• Type of Transaction: All cash consideration
• Acquisition Cost: ₹48 lakh
• Stake Acquired: 100% in EMMRL
• Nature: Related-party transaction, conducted at arm’s length
• Approvals Board, Audit Committee, and Shareholders (subject to Postal Ballot)
• Timeline of completion: End of 6 to 9 months, approximately.
• Clearance: Regulated under the state and central legislations.

Though the acquisition comes under the related-party transaction umbrella on account of common promoters, Hindalco has said that everything is being done as per arm’s length basis. The agreement has been ratified by the Supreme Judge of India on May 20, 2025 and will be presented to shareholders for final approval by postal ballot as per SEBI’s XBRL disclosure standards.

EMMRL: Target Company Snapshot

• Date of Establishment: February 27, 2020
• Business: Commercial coal mining
• FY25 Turnover: ₹0
• FY25 PAT: ₹(31.07) crore
• FY25 Net Worth: ₹(46.33) crore

EMMRL is not a profit-making unit, but the real assets is the licence to work the Bandha coal block, which Hitndalco proposes to draw on the existing Mahan operations. Close proximity of the coal mine to the Mahan smelter is expected to create operational synergies, lower logistics costs and ensure consistent availability of thermal coal for a minimum period of 25 years.

About Hindalco

Hindalco Industries Ltd. is an industry leader in aluminium and copper and the metals’ flagship company of the Aditya Birla Group, a multinational conglomerate based in Mumbai, India. It is part of the Aditya Birla Group, a large Indian multinational conglomerate.

This acquisition will strengthen Hindalco’s backward integration capabilities and support its vision of ‘building a future that is the best in our present’.

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Source: https://nsearchives.nseindia.com/corporate/xbrl/REG30_Restructuring_1444031_20052025023625_WEB.xml