Hindalco Industries, a key player within the Aditya Birla Group, has announced an ambitious expansion plan involving substantial investments totaling $10 billion. During the annual general meeting, Chairman Kumar Mangalam Birla outlined the company’s extensive projects, which include significant expansions in their aluminum and copper smelting operations, the development of the Aditya FRP plant, the establishment of a new alumina refinery in Rayagada, and an expansion of the Bay Minnette facility at Novelis.
Birla detailed that Hindalco is contemplating a brownfield expansion at its Aditya Aluminium smelter in Odisha, aiming to increase capacity by around 200,000 tonnes. A notable aspect of this expansion is that a considerable portion of the power required will be sourced from renewable energy, reflecting the company’s commitment to sustainable practices.
Birla emphasized, “Our expansion efforts, encompassing both our operations in India and at Novelis, will involve investments totaling $10 billion. This encompasses not only the planned expansions for our aluminum and copper smelters but also the Aditya FRP plant, the new alumina refinery in Rayagada, and the Bay Minnette expansion at Novelis.”
Additionally, Birla mentioned that Hindalco is exploring an increase in its copper smelting capacity and is considering setting up a new brownfield facility in Gujarat. This move aims to address the rising demand for copper within the country, an essential metal for various industries. Birla further noted, “Hindalco is dedicated to leading the green transition in India, aligning with the country’s growth goals. This commitment entails making bold advancements throughout our operations, from upstream production to downstream processing.”
The first phase of this extensive expansion, involving 850,000 tonnes, is projected to commence in the fiscal year 2027. Birla also highlighted the evaluation of a potential 200,000-tonne brownfield expansion at the Aditya Aluminium smelter in Odisha. Regarding the Bay Minnette project, Birla shared that the company has secured long-term contracts for all the new beverage packaging capacity at this facility, which is anticipated to start commissioning in the latter half of 2026.
Looking ahead, Birla forecasted that India’s aluminum consumption, which was recorded at 5 million tonnes in the fiscal year 2024, is expected to double to around 10 million tonnes over the next decade. He also projected a 10% growth in copper consumption in the coming years. On the subject of capital allocation, Birla assured that Hindalco remains committed to its well-organized capital allocation strategy, directing free cash flow towards both organic growth and dividend distribution.
Despite having repaid Rs 5,195 crore of debt in Hindalco’s Indian operations during the year, the company has maintained a robust balance sheet and strong liquidity, positioning itself well to pursue future growth through strategic capital allocation. In the most recent financial results, Hindalco reported a 25% increase in net profit for the first quarter, reaching Rs 3,074 crore compared to the previous year.
However, this performance fell short of analysts’ and investors’ expectations. The copper business revenue climbed to Rs 13,292 crore, marking a 15.6% growth driven by higher shipments and improved realization. Additionally, revenue from the aluminum upstream and downstream sectors grew by 9.6% and 18%, respectively, as announced by the company.
Hindalco Industries, a leading metals and mining company, is part of the Aditya Birla Group. It specializes in aluminum and copper production, with operations spanning smelting, refining, and recycling. Known for its commitment to sustainable practices, Hindalco is focused on expanding its capacity and advancing green technology while driving growth through strategic investments and innovation.
