Browse Case Studies by
Case Studies in
- Corporate Governance
- Corporate Social Responsibility
- Economics
- Enterpreneurship
- Finance, Accounting & Control
- Leadership
- Marketing
- Organisational Behaviour / HRM
- Social Entrepreneurship
- Strategy
- All Case Studies »
Concept wise Case Studies
- Corporate Turnarounds - Vol. I
- Corporate Restructuring - Vol. I
- Turnaround Strategies - Vol. I
- Turnaround Strategies - Vol. II
- Low Cost Airlines
- » All Concept wise Cases
Industry wise Case Studies
- Consumer Electronics and Appliances Retail
- Telecommunications Equipments and Services
- Retailing
- Food and Beverages
- Electronics
- » All Industry wise Cases
Region wise Case Studies
Restructuring / Turnaround Strategies Case Study
Case Title:
Novelis, Alcan's Spin-off: Staying Competitive?
Publication Year : 2006
Authors: Shalini, Sumit Kumar Chaudhuri
Industry: Aluminium Production
Region: USA
Case Code: RTS0075
Teaching Note: Not Available
Structured Assignment: Not Available
Abstract:
In January 2005, Alcan, the Canadian aluminium company, spun-off its rolled products business into an independent company, Novelis. The Spin off was required for Alcan to receive an antitrust approval from the European Union after its acquisition of a French company, Pechinery. Novelis supplies rolled products for use in food and beverage, can production, food packaging foils as well as automotive parts. In 2004, with customers like Jaguar, Ford, Mercedes, Reaxam and Kodak Polychrome Graphics, Novelis generated sales of $7.8 billion. However, it is mired with problems like a debt of $2.95 billion, rising energy costs and metal price ceilings in some of its sales contracts.
Pedagogical Objectives:
- To highlight the rationale behind the Spin off of Novelis from Alcan
- To discuss the competitive strategies of Novelis in the global rolled products business.
Keywords : Alcan; Novelis; Spin off; Competitive strategy; Restructuring / Turnaround Strategies Case Study; Flat-rolled aluminium market; Aluminium production; US; GM (General Motors); Mercedes; Jaguar Cars Limited; Metal price ceiling; Canada
