- 25 Jun 2024
- ICICI Securities
ADANI AND HINDALCO HAVE SHOWN INTEREST IN HINDUSTAN COPPER’S JHARKHAND MINES
News: As per media sources, the Adani Enterprise and Hindalco are among the bidders participating in the pre-bid conference which is aimed at selecting a mine developer and operator (MDO) for Hindustan Copper’s mines in Jharkhand. The Rakha and Chapri mines have a combined capacity of 3 million tonnes.
Views: This development is positive for domestic refined copper manufacturers who currently rely on import of copper. Private players like Hindalco are expanding their downstream presence, such as by establishing India’s first Inner Grooved Copper Tube facility with a capacity of 25 KTPA under the PLI scheme. Adani Enterprise has also made a stride by commissioning the first unit of its greenfield copper refinery project in Mundra, dispatching the initial batch of cathodes to customers. We maintain a positive stance on Hindalco driven by healthy demand for Aluminium and Copper metal given its incremental application in automobile and renewable spaces, strategic capacity expansions, higher focus on value added products, improving operating efficiencies, and controlled leverage on B/S (Debt to Equity at ~0.5x).
Impact: Positive