Hindalco plans $10 billion investment over 5 years to boost value chain

At its AGM, Hindalco unveiled a $10 billion investment plan over five years to expand aluminium, copper and alumina operations, with its Dahej smelter set to become the largest outside China

Hindalco Industries, part of the Aditya Birla Group, has planned its growth over the next five years, backed by “committed global investments” worth $10 billion. This would give a fillip to its value chain across aluminium, copper, and speciality alumina in both its Indian and global operations (through Novelis). 

 

Addressing shareholders at the company’s 66th annual general meeting (AGM), group chairman Kumar Mangalam Birla said the expansion drive will strengthen the company’s upstream and downstream businesses. It would position Hindalco at the forefront of India’s industrial growth. In India, it is doubling down on upstream capacities through substantial investments in aluminium and copper smelting.

 

 

On the company’s copper segment, Birla said a 300,000-tonne smelter expansion is underway at Dahej, which, once completed, will make it the largest copper smelting complex in the world, outside China. The move comes at a time when India’s copper demand is rising sharply, fuelled by urbanisation, digitisation, renewable energy adoption, and electric vehicles.

 

Additionally, the company is expanding its aluminium smelter at Aditya by 180,000 tonnes per annum and planning a further 360,000-tonne expansion at Mahan. 

 

“We are also investing in a greenfield 850,000-tonne alumina refinery. Besides, the company's resource security has been further strengthened with allocation of the 12-million-tonne Meenakshi coal mine. This will enhance energy self-sufficiency and reinforce Hindalco’s position as the world’s lowest-cost aluminium producer by reducing reliance on auction and linkage coal,” Birla added.

 

The company is also ramping up investments in recycling. He said, “Our new copper tubes plant is ramping up, and construction is in full swing for India’s first and the world’s second-largest dedicated e-waste and copper recycling facility at Pakhajan.”

 

Through Hindalco's US-based subsidiary, Novelis, Birla said its $4.1 billion Bay Minette project is progressing as planned, with commissioning expected in the second half of this year.

 

Upon completion of all ongoing expansion initiatives, including Bay Minette, the company anticipates Novelis’ total production capacity to reach around 5 million tonnes per annum.

 

He said sustainability remains a cornerstone of Hindalco’s transformation — it is bringing initiatives like India’s first e-waste recycling facility at Birla Copper and a 100 Mw hybrid renewable energy project at Aditya aluminium smelter in Odisha.

 

This will integrate solar, wind, and storage, And, it is among the first in the global aluminium industry to deliver stable, round-the-clock and carbon-free power for smelting.

 

“Our India aluminium business delivered industry-leading margins. Downstream aluminium posted its best-ever quarterly performance. The copper business remained steady, and Novelis shipments grew despite global challenges. Our balance sheet remains strong with net debt to earnings before interest, taxes, depreciation and amortisation (Ebitda) at 1.02 times, giving us the capacity to fund our growth ambitions,” said Birla.