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Hindalco acquired US-based AluChem for $125M to tap into the high-performance tabular alumina market.
This marks the first-ever entry by an Indian company into the low-soda tabular alumina segment used in heavy-duty industrial applications.
Think of tabular alumina as ultra-hard crystals, similar in toughness to minerals found in gemstones like sapphire, designed to withstand extreme heat and stress.
The deets: Hindalco Industries is doing this acquisition via its arm Aditya Holdings LLC.
AluChem brings along a solid US manufacturing footprint with a 60,000-tonne capacity spread across three advanced plants in Ohio and Arkansas, and expertise in ultra-low soda calcined alumina products.
Why it matters: Hindalco is already a major player in the specialty alumina space, known for producing alumina used in refractories, ceramics, and electrical insulation. With the AluChem acquisition, it’s now stepping into a more advanced corner of the market.
It’s also a step up in Hindalco’s value-added game plan, giving it access to cutting-edge components used in EVs, semiconductors, and precision ceramics.
Zoom out: India's tabular alumina market is experiencing significant growth, driven by increasing demand in sectors such as steel, cement, petrochemicals, and advanced ceramics.
In 2024, the market was valued at approximately USD 954 million and is projected to grow at a rate of 9.8% through 2031.
The steel and cement industries, in particular, are major consumers of tabular alumina due to its high thermal stability and mechanical strength, essential for high-performance refractory applications.
Additionally, the Indian government's focus on expanding renewable energy and electric mobility sectors is also contributing to the demand for advanced materials like tabular alumina.
