Hindalco's Ambitious $10 Billion Expansion Plan Unveiled by KM Birla

Hindalco Industries is set to embark on a significant expansion journey, with a $10 billion investment aimed at enhancing its operations across India and its global arm, Novelis. Chairman KM Birla announced this strategic move during the company’s annual general meeting, highlighting the scale and scope of the projects involved.

The investment will fund several key initiatives, including expansions in aluminium and copper smelting capacities. A new brownfield smelter is being considered in Gujarat to meet the rising domestic demand for copper. Additionally, the Aditya FRP plant will see further expansion, and a greenfield alumina refinery is planned for Rayagada, with the first phase slated for completion by FY27.

Birla also emphasized the upcoming Bay Minnette expansion at Novelis, which will add new beverage packaging capacity, expected to be operational by late 2026. These projects reflect Hindalco’s commitment to supporting India’s industrial growth while advancing its green transition goals.

Forecasting the future, Birla projected that India’s aluminium consumption could double from 5 million tonnes in FY24 to 10 million tonnes in the next decade. Copper consumption is also expected to grow at a steady rate of 10% annually, further driving the company’s expansion efforts.

Despite the large-scale investments, Birla assured stakeholders of Hindalco’s disciplined capital allocation strategy. The company has maintained a robust balance sheet, repaid substantial debt, and continues to prioritize organic growth and dividend distribution, positioning itself for sustained future growth.

News by Rahul Yelligetti