India: Hindalco acquires EMMRL to enhance fuel security, operational efficiency

• Acquisition to give Hindalco ownership of Bandha coal block
• Captive coal supply to protect Hindalco from fuel market volatility

Hindalco Industries has announced the acquisition of EMIL Mines and Mineral Resources Ltd (EMMRL), a wholly owned subsidiary of Essel Mining and Industries Ltd (EMIL).

This acquisition aligns with Hindalco’s broader strategy to integrate backwards into key raw materials and secure long-term operational sustainability. It is expected to enhance production reliability, lower input cost volatility, and strengthen the company’s position as a market leader in the aluminium industry.

The company’s Board of Directors approved the acquisition on 20 May 2025. Under the terms of the deal, Hindalco will acquire 100% equity in EMMRL for a consideration of INR 48 lakh, along with the assumption of net debt amounting to INR 1,131 crore.

The transaction is subject to customary regulatory and shareholder approvals, including those from state and central government authorities. The acquisition is expected to be completed within six to nine months.

Access to Bandha coal block

The acquisition will give Hindalco ownership of the Bandha coal block, located in Singrauli, Madhya Pradesh. With estimated mineable coal reserves of approximately 197 million tonnes (mnt), estimated geological reserves of 560 mnt, and an expected mine life of 45 years, the block is a significant resource for long-term energy security.

The coal block’s proximity to Hindalco’s Mahan aluminium plant offers logistical advantages that are expected to translate into improved supply chain efficiency and reduced transportation costs.

Enhancing energy security, cost competitiveness

Given that energy constitutes a substantial portion of aluminium production costs, the acquisition of a captive coal source is a strategic move. By securing the Bandha coal block, Hindalco aims to reduce reliance on third-party coal suppliers and protect itself from market volatility in fuel prices.

The captive coal supply will support consistent operations at the Mahan plant and contribute to overall cost efficiency, helping the company maintain its competitive edge in the aluminium sector.