Given the fact that commodity cycle is now down, when will Novelis deliver shareholder value?
If we knew that commodity cycles would go down, then we would have paid less. No one knew about it. Having said that, the long-term value remains the same. We had said from the beginning that it will be value accretive in three years. After this cycle, it may be value accretive in four years. So, there is another three years to go. Which, for an acquisition of this size, is quite reasonable. To what extent has Novelis been hit by auto sales drop in the US and Europe? It has been (affected) because of drop in sales in both auto and construction. And how is it countering it? By providing technical services to customers and by customising aluminium. That s the way to counter this downturn to an extent. Where do the acquisitions of copper mine figure in this strategy? We are mapping and looking around for mining. It has to suit our requirement in terms of size, location, etc. Such acquisitions will give us better control over scarce resource. Is it tougher to manage commodity cycles from I
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