India’s copper and aluminium demand strong, says Hindalco MD Satish Pai

Satish Pai, MD, Hindalco Industries.

India’s demand for copper and aluminium has been improving and is expected to remain strong, said a top executive from Hindalco Industries. The executive added that demand for both metals has now crossed the pre-pandemic levels.

“Domestically seeing very high demand growth for both – copper and aluminium, and both have crossed the pre-COVID (demand) levels,” said Satish Pai, managing director of Hindalco Industries in a post-earnings media call on May 24.

Pai expects India’s aluminium demand to grow in the range of 5-7 percent in FY24.

For the March-23 ended quarter, Hindalco reported copper shipments of 117 kilotonnes (KT), up 11 percent. Hindalco’s India aluminium shipments for the same period were at 323 KT flat on a year-on-year basis. Pai, on the earnings call, added that the company is running its India aluminium capacity at full utilisation.

In its March-23 ended quarter presentation, Hindalco said domestic demand for aluminium at an industry level is estimated to have touched 1173 KT, a growth of 13 percent year-on-year. “This sharp growth is supported by strong demand in Electrical and Auto. Building and construction was marginally impacted by rising interest rates and consumer durables was subdued,” the presentation noted.

The presentation further noted that domestic market demand for refined copper increased by 16 percent YoY at 199 KT which is higher than the pre-COVID levels.

Further, the company said, it has started production of low-carbon aluminium. According to Pai, the company targets to have 30 percent of its total aluminium production in the low-carbon category in the next three to four years’ time.

Of the planned capital expenditure for the current financial year, Hindalco looks to spend Rs 5,000 crore on India operations and another $1.8 billion for its US operations. Pai said all capital expenditure would be met through internal accruals.

Hindalco’s consolidated gross debt as of March was at Rs 58,337 crore. Pai said the company does not plan for any fresh borrowings. The top executive also pointed out Hindalco’s India business is almost net-debt free. Consolidated net debt for the company was at Rs 33,959 crore as of March.