Hindalco expansion plan entails $10 billion investment
ECONOMY & POLICY

Hindalco expansion plan entails $10 billion investment

Hindalco Industries' ongoing expansion plans involve an investment of $10 billion, according to the company?s chairman, KM Birla. Speaking at the company's annual general meeting (AGM), Birla mentioned that this investment not only includes ongoing expansion at Novelis but also plans for aluminium and copper smelter expansions. He stated that the expansions across Hindalco's India business and Novelis will require a $10 billion investment for both ongoing and near-term projects.

Birla further elaborated that this investment encompasses the expansion of aluminium and copper smelters, the Aditya FRP plant, the new alumina refinery in Rayagada, and the Bay Minette expansion in Novelis. He noted that Hindalco also intends to expand its copper smelting capacity and is considering setting up a brownfield facility in Gujarat to meet the growing demand for this critical metal in the country.

Discussing the rationale behind expanding aluminium and copper operations, Birla emphasized Hindalco's commitment to leading the green transition in India while supporting the country's growth aspirations. This commitment involves taking significant steps across the company's operations, from upstream to downstream.

Birla also highlighted that Hindalco is establishing a greenfield alumina refinery in Rayagada, Odisha, with the first phase of 850,000 tonnes expected to be commissioned in FY27. Additionally, the company is considering a nearly 200,000-tonne brownfield expansion at its Aditya Aluminium smelter in Odisha.

Regarding the Bay Minette project, Birla mentioned that long-term contracts have already been secured for the new beverage packaging capacity at the plant, which is expected to begin commissioning in the second half of the 2026 calendar year. He projected that India's aluminium consumption, which stood at 5 million tonnes in FY24, could double to approximately 10 million tonnes over the next decade. Copper consumption is also expected to grow by 10% over the next few years.

On Hindalco's capital allocation strategy, Birla stated that the company continues to implement its well-structured capital allocation plan, focusing free cash flow on organic growth and dividend distribution. Despite repaying Rs 51.95 billion of debt in Hindalco India during the year, the company has maintained a strong balance sheet and solid liquidity, positioning it well to pursue future organic growth plans through careful capital allocation.

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Hindalco Industries' ongoing expansion plans involve an investment of $10 billion, according to the company?s chairman, KM Birla. Speaking at the company's annual general meeting (AGM), Birla mentioned that this investment not only includes ongoing expansion at Novelis but also plans for aluminium and copper smelter expansions. He stated that the expansions across Hindalco's India business and Novelis will require a $10 billion investment for both ongoing and near-term projects. Birla further elaborated that this investment encompasses the expansion of aluminium and copper smelters, the Aditya FRP plant, the new alumina refinery in Rayagada, and the Bay Minette expansion in Novelis. He noted that Hindalco also intends to expand its copper smelting capacity and is considering setting up a brownfield facility in Gujarat to meet the growing demand for this critical metal in the country. Discussing the rationale behind expanding aluminium and copper operations, Birla emphasized Hindalco's commitment to leading the green transition in India while supporting the country's growth aspirations. This commitment involves taking significant steps across the company's operations, from upstream to downstream. Birla also highlighted that Hindalco is establishing a greenfield alumina refinery in Rayagada, Odisha, with the first phase of 850,000 tonnes expected to be commissioned in FY27. Additionally, the company is considering a nearly 200,000-tonne brownfield expansion at its Aditya Aluminium smelter in Odisha. Regarding the Bay Minette project, Birla mentioned that long-term contracts have already been secured for the new beverage packaging capacity at the plant, which is expected to begin commissioning in the second half of the 2026 calendar year. He projected that India's aluminium consumption, which stood at 5 million tonnes in FY24, could double to approximately 10 million tonnes over the next decade. Copper consumption is also expected to grow by 10% over the next few years. On Hindalco's capital allocation strategy, Birla stated that the company continues to implement its well-structured capital allocation plan, focusing free cash flow on organic growth and dividend distribution. Despite repaying Rs 51.95 billion of debt in Hindalco India during the year, the company has maintained a strong balance sheet and solid liquidity, positioning it well to pursue future organic growth plans through careful capital allocation.

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