The largest cross-border deal in the history of Indian aluminum industry, while looking glorious on paper, could prove to be far more challenging for India's aluminum giant, AB Birla's flagship company, Hindalco.

The acquisition of Novelis is a landmark transaction for Hindalco and our Group. It is in line with our long-term strategies of expanding our global presence across our various businesses and is consistent with our vision of taking India to the world.

Close on the heels of the megabillion dollar acquisition of Corus by Tatas comes another high-profile cross-border acquisition; but this time by AV Birla Group-owned Hindalco. India's largest aluminum player acquired the Atlanta-based Novelis, the world's largest producer of aluminum rolled products (semi-finished products for inputs for manufacturing such value-added products as automotive body panels) and aluminum can recycling, and whose client list boasts of such impressive names as Ford, Kodak, Coca-Cola, and Audi among other high-profile global customers. The acquisition also signals that a major consolidation wave is slowly taking shape in the global metal industry, which has, of late, seen a spate of deals that began with the takeover of Canadian steel giant Dofasco by Europe's Arcelor, and then Arcelor being absorbed by Mittal Steel, followed by Tata's acquisition of Corus and now Hindalco's acquisition of Novelis. It also reaffirms the trend that Indian companies are gradually breaking free of their domestic shell and emerging into the global market with an increasing urge to stamp their footprint the world over. And they are not afraid to gobble up prey many times bigger than them; Novelis (2005 revenue: $8.3 bn) is almost four times the size of Hindalco (2006 revenue: $2.4 bn).

The Analyst Magazine, Hindalco-Novelis, Indian Aluminum Industry, Global Metal Industry, Global Markets, Indian Companies, Value-added Products, Risk Management, Market Capitalization, Corporate Finance, Western Markets, Strategic Acquisitions, New Fusion Technology, Industrial Products, Multi-alloy Sheet Products, Cross-border Acquisitions.