Hindalco Industries’ ongoing expansion plans entail an investment of $10 billion, said the chairman of the company, KM Birla, at the company’s annual general meeting (AGM) today.
In addition to the ongoing expansion at Novelis, this investment also includes plans for aluminium and copper smelter expansions.
Birla, in his speech, said, “Our expansions across the India business and Novelis will entail investments of $10 billion for ongoing projects as well as those envisioned in the near term.” He added, “This includes the aluminium and copper smelter expansions, the Aditya FRP plant, the new alumina refinery in Rayagada, and the Bay Minnette expansion at Novelis.”
Elaborating on each, he noted, “Hindalco also has plans to expand its copper smelting capacity and is exploring the possibility of setting up a brownfield facility in Gujarat to meet the growing needs of the country for this critical metal.”
Commenting on the rationale for expanding aluminium and copper, he said, “Hindalco is committed to pioneering the green transition in India while enabling the country’s growth aspirations. This would mean taking big, bold steps across our operations—from upstream to downstream.”
Birla noted that Hindalco is setting up a greenfield alumina refinery in Rayagada, Odisha. The first phase of 850,000 tonnes is expected to be commissioned in FY27. He also highlighted that Hindalco is evaluating a nearly 200,000-tonne brownfield expansion at its Aditya Aluminium smelter in Odisha.
For the Bay Minnette project, he added, “We have already secured long-term contracts for all the new beverage packaging capacity at this plant, which is expected to begin commissioning in the second half of calendar year 2026.”
Birla expects India’s aluminium consumption—which was at 5 million tonnes in FY24—to double to approximately 10 million tonnes over the next decade. “We expect copper consumption to grow by 10 per cent over the next few years,” he added.
On the company’s capital allocation strategy, Birla noted, “Hindalco continues to execute its well-structured capital allocation plan, directing free cash flow towards organic growth and dividend distribution. Despite repaying Rs 5,195 crore of debt in the Hindalco India business during the year, Hindalco maintained a strong balance sheet and solid liquidity. This positions us well to drive our future organic growth plans through prudent capital allocation.”
First Published: Aug 22 2024 | 5:51 PM IST
