Hindalco’s USD 10 billion expansion plan includes expansion of aluminum and copper smelters, establishment of a new alumina refinery in Rayagada, the Aditya FRP plant, and the expansion of its Bay Minnette project in Novelis.
Aug 23, 2024
Hindalco Industries, a flagship company of the Aditya Birla Group, has come up with a significant investment plan of USD 10 billion to expand its operations in India and Novelis.
This information was shared by Chairman Kumar Mangalam Birla during the annual general meeting of the company. He revealed plans for the ongoing and near-term projects, including expansions in aluminum and copper smelters, a new alumina refinery in Rayagada, the Aditya FRP plant, and the Bay Minnette expansion in Novelis
Mr. Birla said Hindalco was considering a brownfield expansion of approximately 200,000 tonnes at its Aditya Aluminium smelter in Odisha, with a significant portion of the power requirements to be met through renewable energy sources.
The company is also planning to expand its copper smelting capacity and exploring the establishment of a brownfield facility in Gujarat to meet the growing needs of the country for this critical metal.
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Mr. Birla said Hindalco was committed to pioneering the green transition in India while enabling India’s growth aspirations. This would mean taking big and bold steps across its operations, from upstream to downstream. The first phase of 850,000 tonnes was expected to be commissioned in FY27.
Hindalco was further evaluating a nearly 200,000 tonne brownfield expansion at its Aditya Aluminium smelter in Odisha, he added.
Speaking about strategic capital investments in Novelis, he said the rolling and recycling project in Bay Minette was set to become one of the most advanced and automated plants in the industry, positioning Novelis with a first-mover advantage in the market.
As per the Chairman, they have already secured long-term contracts for all the new beverage packaging capacity at this plant, which was expected to begin commissioning in the second half of calendar year 2026.
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Calling aluminum and copper as essential metals, which will drive sustainable progress in the country, Mr. Birla estimated India’s aluminum consumption to reach approximately 10 million tonnes over the next decade, almost double of 5 million tonnes recorded in FY24. He further predicted copper consumption to grow by 10 percent over the next few years.
He said Hindalco continued to execute its well-structured capital allocation plan, directing free cash flow towards organic growth and dividend distribution. Despite repaying INR 5,195 crore of debt in the Hindalco India business during the year, Hindalco maintained a strong balance sheet and solid liquidity. This positioned the company well to drive future organic growth plans through prudent capital allocation.
