Hindalco to Invest $10 Billion in Expansion, Targets Green Transition

Hindalco Industries is planning to invest $10 billion in its ongoing expansion efforts, according to Chairman KM Birla. This investment includes the expansion at Novelis and plans to grow its aluminium and copper smelting operations.

Birla, while speaking at the company’s annual general meeting (AGM), said, “Our expansions across the India business and Novelis will entail investments of $10 billion for ongoing projects as well as the ones 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 in Novelis.”

Birla mentioned that Hindalco is building a new alumina refinery from scratch in Rayagada, Odisha.

The first phase of the new alumina refinery in Rayagada, with a capacity of 8,50,000 tonnes, is expected to start operating in FY27. Hindalco is also considering a nearly 200,000-tonne expansion at its Aditya Aluminium smelter in Odisha.

For the Bay Minnette project, Birla mentioned that the company has secured long-term contracts for all new beverage packaging capacity, which is set to start in the second half of 2026. Birla anticipates that India’s aluminium consumption, which was 5 million tonnes in FY24, will double to around 10 million tonnes in the next decade. He also expects copper consumption to grow by 10% in the coming years.

Regarding Hindalco’s capital strategy, Birla noted that the company follows a solid plan by using its free cash flow for growth and dividends. Even after paying off ₹5,195 crore of debt in the Hindalco India business, the company has kept a strong balance sheet and good liquidity. This puts Hindalco in a strong position to support its future growth plans through careful capital use.

About Hindalco Industries Ltd

Founded in 1958, Hindalco Industries is a major part of the Aditya Birla Group. The company and its subsidiaries mainly produce aluminium and copper. They also make aluminium sheets, extrusions, and lightweight products for packaging, including beverage and food cans, as well as foil products.

On August 23, 2024, Hindalco Industries share price opened at ₹690.05, touching the day’s high of ₹692.00 as of 09:48 AM on the NSE.

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