Novelis Ex­pands Au­to­mo­tive Alu­minum Ca­pa­bil­i­ties with Ap­prox­i­mately $300 Mil­lion In­vest­ment in Ken­tucky

Business Sphere - - ADITYA BIRLA GROUP - By Our Cor­re­spon­dent

Novelis Inc., the world leader in alu­minum rolling and re­cy­cling, to­day an­nounced plans to build an ap­prox­i­mately $300 mil­lion au­to­mo­tive alu­minum sheet man­u­fac­tur­ing fa­cil­ity in Guthrie, Ken­tucky. The green­field fa­cil­ity, with an an­nual name­plate ca­pac­ity of 200,000 met­ric tons, will in­clude heat treat­ment and pre-treat­ment lines, which pre­pare alu­minum for use in ve­hi­cle parts such as body-in-white, hoods, doors, lift gates and fend­ers. The com­pany ex­pects to break ground in early spring and cre­ate ap­prox­i­mately 125 jobs at the new fa­cil­ity, which is slated to open in 2020. “To­day’s an­nounce­ment by Novelis to ex­pand its ca­pa­bil­i­ties in North Amer­ica is a strate­gic de­ci­sion fully sup­ported by the Aditya Birla Group to main­tain the group’s lead­er­ship po­si­tion in the global me­tals sec­tor and its on­go­ing com­mit­ment to serve both up­stream and down­stream cus­tomers,” said Ku­mar Man­galam Birla, chair­man of the board of di­rec­tors of Novelis Inc. and chair­man of the board of di­rec­tors of Hin­dalco In­dus­tries Lim­ited. “We are im­mensely proud of this lat­est in­vest­ment and look for­ward to see­ing it flour­ish.” “As the global leader in au­to­mo­tive alu­minum sheet pro­duc­tion, Novelis is lever­ag­ing its strong bal­ance sheet, tech­ni­cal ex­per­tise and proven prod­uct ex­cel­lence to make this strate­gic in­vest­ment that will ul­ti­mately add to its un­matched man­u­fac­tur­ing foot­print and de­liver in­no­va­tive so­lu­tions to the mar­ket­place,” said Satish Pai, Man­ag­ing Di­rec­tor, Hin­dalco In­dus­tries Lim­ited and a mem­ber of the board of di­rec­tors of Novelis, Inc. This in­vest­ment is the lat­est ad­di­tion to Novelis’ ex­ten­sive net­work of au­to­mo­tive fin­ish­ing lines. De­mand for au­to­mo­tive alu­minum is ex­pected to rise ac­cord­ing to the 2017 Ducker World­wide sur­vey pro­jec­tion that alu­minum con­tent in North Amer­i­can pas­sen­ger ve­hi­cles, par­tic­u­larly light trucks and SUVs, will in­crease 42 per­cent from its 2015 level by the year 2028. “Alu­minum is a grow­ing ma­te­rial of choice for the au­to­mo­tive in­dus­try world­wide as auto man­u­fac­tur­ers con­tinue to de­mand more and more alu­minum to pro­duce lighter, safer and stronger cars, trucks and SUVs,” said Steve Fisher, Pres­i­dent and CEO, Novelis, Inc. “Novelis will con­tinue to in­no­vate along­side our au­to­mo­tive cus­tomers to light­weight the ve­hi­cles

of to­day while look­ing ahead to meet the mo­bil­ity needs of the fleet-based economies of to­mor­row.” The new fa­cil­ity will be in close prox­im­ity to Lo­gan Alu­minum Inc., a Novelis joint ven­ture in Rus­sel­lville, Ky., and sev­eral nearby au­to­mo­tive man­u­fac­tur­ing plants. “We are ex­cited to see Novelis, a leader in the global alu­minum in­dus­try, ex­pand its Ken­tucky pres­ence and bring new ad­vanced-man­u­fac­tur­ing jobs to Todd County,” said Ken­tucky Gover­nor Matt Bevin. “Part­ner­ing with com­pa­nies like Novelis, who are in­vest­ing here for the long term, sup­ports the state’s econ­omy and advances our ef­forts to make Ken­tucky the cen­ter for en­gi­neer­ing and man­u­fac­tur­ing ex­cel­lence in Amer­ica. We are grate­ful to Novelis for this tremen­dous vote of con­fi­dence in our work­force and for broad­en­ing their foot­print in Ken­tucky.” More than 200 dif­fer­ent ve­hi­cle mod­els on the road to­day fea­ture Novelis alu­minum. Many of the world’s premier brands in­clud­ing FCA, Ford, GM, Jaguar Land Rover and Toy­ota have called on Novelis to help de­sign the safest, strong­est and most durable cars and trucks.

Is­sue of Equity Shares On Pref­er­en­tial Ba­sis To Aditya Birla Group (Pro­moter Group) En­ti­ties For Rs. 32,500 Mil­lion

The Board of Di­rec­tors of Idea Cel­lu­lar Lim­ited (Idea) to­day ap­proved is­suance of 326.6 mil­lion equity shares (face value of Rs.10 per share) at a price of Rs.99.50 per share (in ac­cor­dance with SEBI ICDR Reg­u­la­tions) on pref­er­en­tial ba­sis to the Pro­moter group en­ti­ties Birla TMT Hold­ings Pri­vate Lim­ited / Elaine In­vest­ments Pte. Ltd. (Sin­ga­pore) / Ori­ana In­vest­ments Pte. Ltd. (Sin­ga­pore) / Surya Ki­ran In­vest­ments Pte. Ltd. (Sin­ga­pore). The ag­gre­gate cap­i­tal in­fu­sion will be of Rs.32,500 mil­lion. Mr. Ku­mar Man­galam Birla, Chair­man, Idea Cel­lu­lar Lim­ited, said, “The Aditya Birla Group re­mains com­mit­ted to­wards the tele­com busi­ness. The group is in the process of cre­at­ing a large dig­i­tal in­fra­struc­ture and to con­trib­ute sig­nif­i­cantly to­wards ful­fil­ment of the ‘Dig­i­tal In­dia’ vi­sion of the Hon’ble Prime Min­is­ter. At a time when the tele­com in­dus­try is go­ing through a chal­leng­ing en­vi­ron­ment, this equity in­fu­sion by the Group in Idea is another step to­wards re­in­forc­ing the group’s com­mit­ment.” The above equity is­sue is sub­ject to share­hold­ers and other reg­u­la­tory ap­provals. The Ex­tra­or­di­nary Gen­eral Meet­ing (EGM) of share­hold­ers is to be con­vened on 30 Jan­uary 2018. The is­sue is ex­pected to be com­plete by early Fe­bru­ary 2018, post which the share­hold­ing of pro­moter group in Idea will in­crease to 47.2 per cent from ex­ist­ing level of 42.4 per cent. Sep­a­rately, the Board has also con­sti­tuted a com­mit­tee of Board mem­bers to eval­u­ate po­ten­tial routes for rais­ing fur­ther cap­i­tal of up to Rs.35,000 mil­lion in­clud­ing, among oth­ers, fur­ther Pref­er­en­tial Is­sue, Qual­i­fied In­sti­tu­tional Place­ment (QIP), Rights Is­sue. Ap­pro­pri­ate dis­clo­sures will be made once the Board ap­proves such is­suance of ad­di­tional cap­i­tal based on the rec­om­men­da­tions of the Com­mit­tee. The pro­posed cap­i­tal rais­ing along with re­cent an­nounce­ment of Idea’s stand­alone tow­ers sale to ATC and the po­ten­tial mon­eti­sa­tion of Idea’s 11.15 per cent stake in In­dus Tow­ers, will aug­ment the long term cap­i­tal re­sources of the com­pany. Idea re­mains com­mit­ted to par­tic­i­pate in dig­i­tal op­por­tu­ni­ties and is ag­gres­sively ex­pand­ing its wire­less broad­band cov­er­age and ca­pac­ity, with fo­cus on 4G ser­vices. Dur­ing the first nine months of the fi­nan­cial year 2017-18, Idea has added over 33,500 wire­less broad­band sites and the cur­rent 143,500 broad­band sites now, cover 620 mil­lion In­dian pop­u­la­tion (52 per cent of pop­u­la­tion). Idea is also mov­ing fast to launch its VoLTE ser­vices dur­ing cal­en­dar year 2018.

About Idea Cel­lu­lar Lim­ited

Idea Cel­lu­lar is the third largest wire­less op­er­a­tor in In­dia with a rev­enue mar­ket share of 16.2 per cent (Q2FY18). Idea is listed on the Na­tional Stock Ex­change (NSE), and the Bom­bay Stock Ex­change (BSE) in In­dia. Idea is part of the Aditya Birla Group, which is one of the largest busi­ness groups in In­dia. The Aditya Birla Group is a con­glom­er­ate with op­er­a­tions in more than 35 coun­tries and has busi­nesses in, among oth­ers, mo­bile telecom­mu­ni­ca­tions, me­tals and min­ing, ce­ment, car­bon black, tex­tiles, gar­ments, chem­i­cals, fer­tilis­ers and fi­nan­cial ser­vices in­dus­tries.

Ku­mar Man­galam Birla, Chair­man, Idea Cel­lu­lar Lim­ited

Satish Pai, Man­ag­ing Di­rec­tor, Hin­dalco In­dus­tries Lim­ited

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