Over the next 5 years, Kumar Mangalam Birla owned Hindalco Industries Ltd. is aiming to invest up to US$7.2 billion in expanding its aluminium industry following the whooping increase in the price of aluminium due to the global supply bottlenecks and strong demand expectations.
Hindalco Industries Limited, an Indian aluminium and copper manufacturing company, is a subsidiary of the Aditya Birla Group. With its headquarters in Mumbai, the company has an annual sale of US$15 billion and employs around 20,000 people.
The company will be using the funds to expand its operations in India and North America. In an investor presentation, it stated that it had set aside $2.4 billion for its Indian aluminium operations over the next five years, with consumption expected to boost up in the next decade.
Novelis, another subsidiary of Hindalco would invest up to US$4.8 billion in the United States, Brazil, Asia, and Germany, including some previously announced expansions.
The Mumbai-based firm is increasing its primary aluminium capacity in India after maintaining it at 1.3 million tonnes for the previous four years, predicting that prices would stay high due to supply restrictions and strong demand.
Hindalco aims to increase the capacity of its Aditya Mahan smelter in India up to 50,000 tonnes by March 2024. It further stated that, among other growth plans, it is exploring building another 180,000 tonnes per year at the same location and establishing a 1 million tonne per year alumina refinery in Odisha.
India's aluminium consumption is expected to increase to almost 8 million tonnes by March 2032, while copper consumption is expected to more than quadruple during the same period, according to Hindalco. According to the presentation, it has set aside $286 million for its copper business and $459 million for coal mine development in India as part of its expansion ambitions.
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