Hindalco Expansion Plan Includes $10 Billion Investment, Announces KM Birla

Hindalco Industries is set to invest $10 billion as part of its ambitious expansion plans, according to KM Birla, the company’s chairman. The investment will support various projects, including expansions at Novelis, aluminium and copper smelters, and new facilities.

Speaking at the company’s annual general meeting (AGM) on Thursday, Birla outlined the scope of the investment. He said, “Our expansion efforts across the India business and Novelis will involve $10 billion for both ongoing and upcoming projects.”

The investment plan includes several key initiatives:

• Aluminium and Copper Smelter Expansions: Hindalco is focusing on increasing its smelting capacities and is considering a new brownfield facility in Gujarat to address growing domestic demand for copper.


• Aditya FRP Plant: Expansion plans for this plant are underway.


• New Alumina Refinery in Rayagada: A greenfield alumina refinery will be established, with the first phase of 850,000 tonnes expected to start in FY27.


• Bay Minnette Expansion at Novelis: This project is set to include new beverage packaging capacity, with commissioning anticipated in the latter half of 2026.

Birla highlighted the company's strategic focus on supporting India’s growth aspirations while driving a green transition. He noted, “Hindalco is committed to pioneering the green transition in India. This requires bold actions across our operations, from upstream to downstream.”

Regarding market outlook, Birla projected that India’s aluminium consumption, which stood at 5 million tonnes in FY24, could double to around 10 million tonnes over the next decade. He also expects copper consumption to grow by 10% in the coming years.

On capital allocation, Birla emphasized Hindalco’s disciplined approach. He stated, “We continue to execute a well-structured capital allocation plan, focusing on organic growth and dividend distribution. Despite repaying Rs. 5,195 crore of debt this year, Hindalco has maintained a strong balance sheet and solid liquidity, positioning us well for future growth through prudent capital management.”

BS