Hindalco Industries Limited, a part of the Aditya Birla Group, is an industry leader in aluminum, copper, and specialty alumina. Hindalco’s Copper and Specialty Alumina divisions are leaving an indelible mark on the global stage as the world moves towards rapid digitalization, electrification, and infrastructure development. Hindalco’s Specialty Alumina business is one of the few fully integrated global producer of alumina and hydrates, serving a wide range of industries, including flame retardants, refractory, ceramics, and water treatment chemicals etc. Hindalco’s Copper division is now the third largest copper wire rod producer (Excluding China) in the world. In India, Hindalco meet two-thirds of the country’s requirement for the non-ferrous metal. Hindalco Industries is committed to utilizing Industry 4.0 principles, predictive analytics, IoT, and AI to ensure consistent production and minimize rejects, particularly for high-end applications. They’ve developed cutting-edge technology to produce super-fine precipitated alumina trihydrate (PPT ATH), an exceptional flame retardant, with a capacity of 30,000 TPA, making them the sole manufacturer of PPT ATH in India. In a recent interaction with Wire & Cable India, Mr. Rajat Sharma, Global Head, Flame Retardants, Hindalco Specialty Alumina and Ms. Namita Bohara, Lead Customer Centricity & Business Development, Birla Copper, shared their insights about the journey and success of Birla Copper and Specialty Alumina businesses. They also talked about their plans for investments in digitizing the factory processes and current scenario, ongoing challenges, and upcoming opportunities in the Indian and global cable markets.
Wire & Cable India: Please tell us about the journey of Birla Copper and Specialty Alumina businesses, major milestones, and important achievements.
Namita Bohara: In 1997, India’s copper production was at 48KTPA, while consumption was 155KTPA, leading to heavy reliance on copper imports. Hindalco Industries recognized this potential for growth and launched its flagship project, Birla Copper, in Dahej, Gujarat, in 1998. Starting at 100KTPA capacity, Birla Copper consistently expanded to meet surging demand. With ongoing investments, India’s refined copper production capacity today stands approx. 1000 KTPA against refined copper consumption of 750KTPA. In view of the continuous development in India, demand will require around 2000 KTPA by 2030 to support downstream expansions planned in India. Birla Copper in Dahej is one of the world’s largest custom copper smelters with a captive jetty at Dahej. It features two smelters, two refineries, three rod plants (including one at Vadodara) and a world class Rautomead technology copper alloy manufacturing at Bhiwadi. Hindalco produces high-quality copper cathodes, continuous cast copper rods (notably 19.6mm diameter rods essential for railway electrification), copper alloys and Wires and precious metals like gold and silver. Birla Copper’s brands, Birla Copper, and Birla Copper II, are recognized globally for their purity and consistent quality. We are also ISO 9001, 14001, 27001, 50001, and OHSAS 18001 certifications, Star Trading House status, and NABL-accredited testing labs.
Rajat Sharma: Our Specialty Alumina business which manufactures specialty alumina and hydrates, is a mines-to-market player with a rich legacy of 50 years. We command around 80 percent share in the domestic market and on a global scale, we stand as one of the prominent players in the industry. The journey of our Specialty Alumina business dates back to 1968 when we first set up our Bayer plant. We have our Specialty Alumina refineries in both Belagavi and Muri. Our production capacity since then has grown from 70 KTPA to 600 KTPA. We constantly invest in new technology and processes to stay at the forefront, with our manufacturing units in Belagavi and Muri being hotspots for four decades. These facilities enable us to serve customers across 42 countries, supported by Hindalco Innovation Centre – Alumina, recognized by the Government of India for R&D. Notably, Hindalco achieved the prestigious top ranking in the Dow Jones Sustainability Indices (DJSI) for its sustainability performance consistently from 2020 to 2022. Unlike the industry standard of disposing of red mud in landfills, we responsibly send 100 percent of our red mud to various cement plants and other industries. Additionally, we are on the brink of a significant transformation, shifting from fossil fuel-based energy to greener, renewable energy sources like biomass and solar. To maintain our competitiveness in the market, we are consistently investing in the development of innovative products such as precipitated hydrate for the wire and cable industry, high-precision products for battery separators and thermal conductive fillers, etc. Our 30 KTPA precipitated hydrate plant is scheduled to be commissioned by the fourth quarter of Fy24.
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WCI: Kindly tell us the sectors or industries where your products or services find their applications.
NB: Copper is the backbone of India’s current infrastructure needs and serves as one of the most crucial input materials in several sectors. Due to this, copper demand is used as a proxy for measuring the health of demand in an economy. Copper as a metal is different from other base metals due to its inherent properties. Copper and copper alloy products at present are being used in various critical applications including railways, EVs, consumer durables, wires and cables for infrastructure development, transportation, renewable energy, defence with a majority being in electrical and thermal applications, supporting the carbon-free economy. Over 80 percent of copper is used in sensitive electrical applications and Birla Copper boasts of producing the safest copper which is electrolytically produced and is LME registered. This is driving India’s growth and aligning with the nation’s vision of Atmanirbhar Bharat (self-reliance). Our high-quality sensitive products make us the most trusted supplier in these dynamic sectors.
RS: The Specialty Alumina market finds its use in specialized and advanced applications, each demanding specific attributes such as particle size, specific surface area, and purity. With our own Bayer’s alumina refinery, we possess significant flexibility to produce a wide range of tailored products for various specialty applications. These products find applications in a wide array of industries including flame retardants, ceramics, refractories, glass, polishing, and water treatment. Alumina hydrate serves as an effective flame retardant and smoke suppressant in various industries such as cables, composites, railways, rubber, plastics, paints and coatings, etc. Hindalco has developed various ranges of flame-retardant products like narrow distributed, low viscosity, white hydrate, low electrolyte, and surface-modified grades. We’ve developed a cutting-edge technology to produce super-fine precipitated alumina trihydrate (PPT ATH), an exceptional flame retardant, with a capacity of 30,000 TPA, making us the sole manufacturer of PPT ATH in India. This move enables us to extensively serve the wire and cable industry, further solidifying our global presence with a new office in Japan.
WCI: Could you share highlights of your previous financial year’s performance? What are you doing to continue the successful run in the current financial year?
NB: In FY 2022-23, Birla Copper achieved record-breaking performance with stable operations, with a focus on customer satisfaction. The division’s exceptional growth was driven by world-class products, and rising copper demand in India due to renewable energy, urbanization, infrastructure development, and digitalization. We continue to invest in contemporary products like inner-grooved tubes for air conditioning, India’s first copper and e-waste recycling facility, and special copper alloys for high-speed railways and other applications through our investment in the world’s best Rautomead technology which shall produce various copper alloy rods.
RS: The past year has undeniably been remarkable for our Hindalco Specialty Alumina business, and it is evident that we are poised for substantial growth in the foreseeable future. Several key achievements and performance indicators highlight our significant growth potential. Our EBITDA grew by an astounding year-over-year in FY23, showcasing our solution-driven approach towards VAP( Value Added Products) and SVAP (Super Value Added Products) products and financial strength. This growth signifies our ability to generate significant profits and enhance shareholder value. We increased flame retardant volumes by 50 percent, demonstrating our capability to meet rising product demand. This strategic expansion positions us for further market share gains and revenue growth. Our business is clearly on a trajectory of substantial growth. We possess a solid foundation, a customer-centric approach, and the ability to innovate and adapt to evolving market dynamics. Leveraging these strengths and executing our expansion plans will further enhance our financial performance. The achievements of the past year are just a glimpse of the prosperous future that awaits us, and we are excited about the growth opportunities that lie ahead and remain committed to delivering greener, stronger, and smarter solutions to our customers, stakeholders, and the market as a whole.
WCI: What are Hindalco’s investment plans for digitizing its factory processes? Kindly shed some light on Hindalco’s investments in employee training and development.
RS & NB: Over the past five years, we’ve embraced digital advancements like IoT, analytics, cloud integration, and AR, boosting efficiency and insights. We prioritize employee input, actively seeking their ideas for relevant digital technologies. We’ve launched upskilling programs in critical digital tech areas such as energy conservation, water reduction, and safety enhancement to empower our teams and enhance operational capabilities. Our foray into digital analytics for asset management has improved equipment efficiency and quality through predictive maintenance and proactive sensor-driven measures, reducing costs and downtime. Hindalco Industries is committed to utilizing Industry 4.0 principles, utilizing predictive analytics, IoT, and AI to ensure consistent production and minimize rejects, particularly for high-end applications. We have seen substantial benefits from AI/ML-based predictive maintenance platforms and digital twin solutions, which have improved core metrics. Our focus on innovation and quality control is central to our operations, driving efficiency, reducing downtime, and delivering excellence to our customers.
WCI: Kindly emphasize on the Indian and international presence, vast clientele, and market share of Hindalco.
NB: In the domestic market, Birla Copper commands a solid 60-65 percent market share, a testament to our unwavering commitment to excellence and customer trust. Both our Copper and Specialty Alumina divisions have played pivotal roles in propelling India’s growth across critical sectors like infrastructure, industry, and renewable energy. Our dedication aligns seamlessly with the vision of fostering a self-reliant India. Beyond India, we extend our reach to meet customer needs in the Middle East and Asia, contributing to global industry and economic growth. This international presence underscores our commitment to delivering high-quality solutions globally.
RS: The Specialty Alumina business dominates the domestic market with a remarkable 80 percent market share in Specialty Alumina and alumina hydrates. To build our international presence further, our Specialty Alumina business has recently opened a sales office in Japan and further plans to open warehouses and sales offices in the eastern and western parts of the world, like NAFTA, Europe, etc., to better serve our customers on just in time basis and reinforce our brand’s local presence. In the medium to long term, we aim to be a supplier of choice for premium alumina globally.
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WCI: Kindly provide your insights on the current scenario, ongoing challenges, and upcoming opportunities in the Indian and global cable markets.
RS & NB: Birla Copper and the Specialty Alumina business are set to drive growth in the wire and cable sector, both in India and globally. In India, this growth is propelled by the rise in renewable power generation, modernization of infrastructure, and investments in metro railways. The increasing demand for electricity, infrastructure development, and adoption of technologies like smart grids and electric vehicles contribute to this dynamic market. On a global scale, there’s a shift towards eco-friendly alternatives in the wire and cable industry, which the chemicals business is well-prepared to leverage. Our product, ATH, is the major component in halogen-free flame retardant (HFFR) cables which are the most futuristic and safest cables in the world. However, the industry faces challenges such as substandard raw materials, import competition, the need for stricter quality regulations, and maximizing value addition in India. Given that the electrical industry consumes a significant portion of copper, ensuring the use of pure ETP (Electrolytic Tough Pitch) copper is crucial for improving efficiency and energy savings. At Hindalco, we take pride in producing LME-grade 99.99 percent pure copper, believing that our commitment to purity extends beyond safety to energy efficiency, cost savings, and even lives saved. We are constantly innovating to come up with new products that meet diverse market needs. Our new product, precipitated ATH will enable us to position ourselves as a comprehensive solution provider in the wire and cable industry.
WCI: What is your vision and plan for Hindalco’s future?
NB: Copper and Specialty Alumina businesses are shifting from product manufacturers to solution providers, aligning with customer needs and expanding downstream operations in India. Our goal is to make India self-sufficient in copper. We are making strategic investments to create new downstream products like inner-grooved tubes for air conditioning and specialty copper alloys for high-speed railways. Additionally, we’re about to launch India’s advanced copper and e-waste recycling facility reinforcing our commitment to sustainability.
RS: In the Specialty Alumina business, we focus on creating value through new product development, co-development, effective marketing, and competitive pricing. Our investment in 30 KTPA plant of superfine precipitated hydrate supports self-reliance in India for halogen-free flame retardants. We continue to prioritize sustainability by repurposing red mud and transitioning to renewable energy sources as the world’s most sustainable aluminum company. We are strategically located to serve the booming market & have the best supply security in the world. We aim to be a supplier of choice for the premium markets globally.
