Aditya Birla Group-owned Hindalco Industries Ltd. has announced the acquisition of a 100% equity stake in US-based AluChem Companies, Inc., a prominent manufacturer of Specialty Alumina. The acquisition is valued at $125 million (₹1,075.16 crore) and will be carried out through Aditya Holdings LLC, a step-down wholly owned subsidiary of Hindalco, the company revealed in an exchange filing on Tuesday.

This represents a major investment by the metal company in specialty alumina, aimed at expanding its portfolio of high-value, technology-driven materials.

“This acquisition is an important step in our global strategy to build a leadership position in value-added, high-tech materials. Our strategic foray into the specialty alumina space will not only accelerate the development of future-ready, sustainable solutions but also open new pathways to pursue high-impact growth opportunities,” Kumar Mangalam Birla, Chairman of Aditya Birla Group said in a statement.

Hindalco’s Specialty Alumina business has seen steady double-digit growth in recent years and now represents a significant part of its operations. Demand for specialty alumina is rising across sectors such as electric mobility, semiconductors, and precision ceramics. The company currently has a production capacity of 500,000 tons and plans to increase this to 1 million tons by FY30.

“As alumina gains increasing relevance in critical and clean-tech sectors, AluChem’s advanced chemistry capabilities will significantly enhance our ability to serve these fast-evolving markets. Importantly, it deepens our high value-added portfolio with differentiated products that drive profitability and strengthen our global competitiveness,” said Satish Pai, Managing Director, Hindalco Industries, in a statement.

AluChem adds a North American footprint to Hindalco, with a production capacity of 60,000 tons per year across three manufacturing facilities in Ohio and Arkansas. The company produces ultra-low soda calcined and tabular alumina, materials valued for their thermal and mechanical stability in applications such as precision mechanical components and industrial refractories.

“This partnership with Hindalco brings AluChem the ability and capital to scale up faster and build scale in North America. (Hindalco’s) ability to leverage R&D capabilities and a talented workforce adds tremendous value to our innovation pipeline, helping drive market expansion beyond North America,” said Ronald P. Zapletal, Founder, AluChem Companies, Inc.

The acquisition is expected to be completed in the third quarter of this fiscal year, subject to customary closing conditions and regulatory approvals.

As Hindalco expands its downstream operations in aluminium, copper, and speciality alumina, this acquisition is expected to strengthen the company’s positioning in advanced manufacturing and technology-driven production.