Hindalco Industries, on November 10, flagged concerns about the spike in imports of Chinese aluminium foil, which is used extensively in food and pharmaceutical packaging.
"We are noticing that China is dumping its product in Indian markets," said Hindalco Managing Director Satish Pai in a post-earnings call with the media, and added, "Aluminum foil imports from China have gone up, and we are concerned."
In 2021, the Finance Ministry issued a notification and imposed an anti-dumping duty on imports of aluminium foil (of thickness between 5.5 micron to 80 micron) from China, Malaysia, Thailand and Indonesia in a bid to protect domestic producers.
Last year, Hindalco along with Raviraj Foils and Jindal India applied on behalf of the domestic industry seeking continuation of anti-dumping duties on aluminium foil imports from China. After an investigation by the Director of Trade Remedies (DGTR), the government extended the anti-dumping duties for another five years.
Pai’s comments come as Hindalco reported a consolidated net profit of Rs 2,196 crore for Q2 FY23-24, missing street estimates. While the company benefitted from a decrease in coal costs, Pai said, "Coal costs in Q3 will be slightly above Q2."
He also flagged strong aluminium and copper demand in domestic markets, powered by government electrification projects and a spike in building and construction activity ahead of the elections.
Asked about Novelis' performance in the third quarter (per US FY), Pai said, "Novelis’s Q3 will be down compared to Q2 due to maintenance shutdowns."
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