Hindalco to Invest USD 10 Billion in Expansion Projects

New Delhi, Aug 22 (PTI) Hindalco Industries will pump in USD 10 billion (around Rs 83,900 crore) in the ongoing and planned expansion projects in India and the US in the near term, its chairman Kumar Mangalam Birla said on Thursday.

The projects included the expansion of Aditya Flat Rolled Products (FRP) plant, the new alumina refinery in Rayagada, Odisha, and the Novelis Inc's Bay Minnette project.

Addressing the company's 65th annual general meeting, Birla said, "Our expansions across the India business and Novelis, will entail investments of USD 10 billion for ongoing projects as well as the ones envisioned in the near-term."

Novelis Inc is a subsidiary of Hindalco Industries.

The company, he said, is setting up a greenfield alumina refinery in Rayagada, Odisha. The first phase of 850,000 tonnes is expected to be commissioned in FY27.

Hindalco is currently evaluating a nearly 200,000 tonne-brownfield expansion at its Aditya Aluminium smelter in Odisha, which will be substantially powered by renewable energy.

The company also plans to expand its copper smelting capacity and is exploring setting up a brownfield facility in Gujarat to meet the growing needs of the country for this critical metal.

Hindalco is building the country's largest Copper Inner Groove Tube plant at Wagodia, Gujarat. This project will be commissioned by the end of this calendar year and will reduce the import dependence for this key component in air conditioners.

Novelis continues to make steady progress across a number of strategic capital investments. The largest among these is the US rolling and recycling investment in Bay Minette.

"With a finished goods capacity of 600,000 tonnes, Bay Minette will be a highly sophisticated and automated plant that will provide us with a first-mover advantage. 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," he explained.

Novelis has begun commissioning the highly advanced automotive recycling centre in North America, and has also recently announced a UBC (used beverage can) recycling expansion in Latchford, UK. These investments will help increase the recycled content of our products while reducing carbon emissions.

Despite repaying Rs 5,195 crore of debt in the Hindalco India business during the year, the company, he said, maintained a strong balance sheet and solid liquidity. "This positions us well to drive our future organic growth plans through prudent capital allocation," he added.