Hindalco Industries, a flagship company of the Aditya Birla Group, is set to undertake a significant expansion with investments totaling $10 billion, said Chairman Kumar Mangalam Birla at the company's annual general meeting held on August 22. He outlined plans for ongoing and near-term projects, including expansions in aluminum and copper smelters, the Aditya FRP plant, a new alumina refinery in Rayagada, and the Bay Minnette expansion in Novelis.
Hindalco is 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, Birla said in his speech.
In addition to its aluminum initiatives, the company is planning to expand its copper smelting capacity and is exploring the establishment of a brownfield facility in Gujarat to address the rising demand for this essential metal in India.
The metals firm posted a 25 percent on-year jump in Q1 net profit to Rs 3,074 crore, but missed Street expectations. Revenue from the copper business came in at Rs 13,292 crore, up 15.6 percent, on account of higher shipments and realisation, while revenue from aluminium upstream and downstream increased 9.6 percent and 18 percent respectively, the company said in an exchange filing on August 13.
As domestic demand for aluminium continues to surge, India's leading producers have charted expansion plans with investments worth thousands of crores of rupees to support volume expansion and vertical integration. Hindalco is setting up a greenfield alumina refinery in Rayagada, Odisha, where the first phase of 850,000 tonnes is expected to be commissioned in FY27.
Birla noted Aluminium and Copper as essential metals for "driving sustainable progress."
Further, he flagged that strategic capital investments in Novelis and that rolling and recycling project in Bay Minette, is set to become one of the most advanced and automated plants in the industry, positioning Novelis with a first-mover advantage in the market.
"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 said.
In FY24, Hindalco's consolidated EBITDA rose to Rs 25,728 crore, a 7 percent growth over the previous year.
"Hindalco maintained a solid balance sheet and liquidity position which helped the Company keep the Net Debt to EBITDA ratio below 1.5x. Looking ahead, our strong cash position will continue to fuel your Company’s growth vision," Birla added.
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