Hindalco Plans Rs 80-Cr Plant

Hindalco Indu-stries is investing Rs 80 crore in a brand new aluminium tyre wheel plant as a part of a strategy to expand its presence in value-added products.

Hindalco president, A K Agarwala, also announced the company's plans to venture into aluminium cans and other products.

On Aditya Aluminium, the proposed greenfield aluminium smelter project, Agarwala said the company will decide on the actual capacities and project cost after the completion of the feasibility study which it has commissioned.

The Hindalco president added the study will be submitted within the next four months and the exact funding pattern will be worked out then.

 

The funds for the project, expected to be over Rs 5,000 crore, will be raised internally and through long-term debt instruments.

Equity finance will be restricted to only 15 per cent of the project cost.

Aditya Aluminium is a separate division of Hindalco and is planning to set up a greenfield integrated smelter at Orissa. Agarwala informed that the project site had been selected, land acquisition was under initiation and that the technology partners for the project had been short-listed.

The complex has proposed capacities of five lakh tonne for alumina and 2.5 lakh tonne for aluminium.

Besides, the complex also plans to have a wire rods capacity of 60,000 tonne.

There are also plans to set up a power plant of 600-650 mega watt.