Mumbai, November 19, 2008

ESS DEE Aluminium Limited acquires majority stake in India Foils Limited

ESS DEE Aluminium Limited (EDAL) today announced that pursuant to the Scheme of Rehabilitation of India Foils Limited (IFL) approved by the BIFR vide its order dated 18.08.2008, it has acquired majority stake in IFL from Madras Aluminium Limited (MALCO) a Vedanta Group Company thereby making IFL EDAL’s subsidiary.

Under the rehabilitation scheme, EDAL and MALCO have infused about Rs. 261 crores in IFL in the form of Equity and Preference shares to repay all existing lenders of IFL, making it debt free. With this, the net worth of IFL has become positive. The shutdown foil stock and rolling plant of IFL at Hoera in West Bengal will be restarted using the funds infused. The revival of plants will commence shortly.

IFL enhances EDAL’s rolling capacity from the existing 18000 tonnes to 37000 tonnes spread across 5 manufacturing facilities and thus making it India’s largest pharmaceutical foil manufacturing company.