As the world accelerates towards a sustainable future, Hindalco Industries is steering its efforts toward the electric vehicle (EV) revolution. With an ambitious INR 45,000 crore (USD 5.22 million) capital expenditure plan, the company is setting its sights on a greener tomorrow by dedicating 10 per cent of this investment to electric vehicle components.
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This strategic move will include INR 850 crore battery foil unit and a flat-rolled products plant in Odisha, along with an extrusion facility in Silvassa, the sources said. The company is also exploring additional opportunities in auto component manufacturing, with Gujarat emerging as a potential hub for its next growth phase.
Last month, the Aditya Birla Group reaffirmed its plan to invest INR 45,000 crore over the next few years across its aluminium, copper, and speciality alumina businesses. CEO Satish Pai told ET that Hindalco is targeting its downstream operations to contribute 30-40 per cent of its earnings before interest, tax, depreciation, and amortisation (EBITDA) within three to four years.
"Of the 45,000 crore (rupees), for the EVs, I would say the share of that would be roughly in the region of 10% or thereabouts," said one of the sources.
A few days back, Hindalco, a flagship metal company of the Aditya Birla group, announced its foray into the electric vehicle component sector with INR 500 crore investments. The company successfully delivered 10,000 aluminium battery enclosures to Mahindra for its BE 6 and XEV 9e electric SUVs and also inaugurated a dedicated EV component manufacturing facility in Chakan, Pune.
According to sources, the flagship company is also considering an additional investment of INR 200-250 crore in the segment this year, with a new plant likely to be established in Gujarat. The construction of the plant is expected to be completed in the current fiscal year, with production set to begin next year. This unit will be strategically located near the client.
In addition to Mahindra & Mahindra, Hindalco is collaborating with Tata Motors and Hero Vida to customise components. Along with battery enclosures, the company will also focus on heat management components, aluminium plates, and crash-absorbing components, according to sources.
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