Hindalco Industries Ltd. on Tuesday announced a Rs 21,000-crore expansion of its aluminium operations in Odisha as part of its ongoing capex programme and tap into rising demand coming from the electric vehicles sector. The plan involves a 3.6 lakh-tonne-per-annum smelter expansion at the Aditya Aluminium complex in Sambalpur, according to a statement. A portion of its power requirement will be met through round-the-clock renewable energy.
The announcment was made after the company commissioned a 1.7 lakh-tonne-per-annum Flat Rolled Products (FRP) and battery-grade aluminium foil manufacturing facility with an investment of Rs 4,500 crore. The projects were inaugurated by Chief Minister Mohan Charan Majhi.
"These projects are a major step in indigenising critical raw materials for lithium-ion batteries in India, supporting the electric mobility and energy storage ecosystem, while enhancing domestic capabilities in high-grade aluminium products. The battery-grade aluminium foil facility—India's first of its kind—draws input directly from the FRP complex and is designed to support up to 100 GWh of lithium-ion cell manufacturing capacity," the company said.
Hindalco, an Aditya Birla Group company, has planned a capex of Rs 37,000 crore for Odisha across upstream and downstream aluminium operations, besides and overall growth capex of Rs 55,000 crore across India.
"Through Hindalco, we are building a fully integrated aluminium ecosystem that spans from upstream resources to high-value downstream products," said Kumar Mangalam Birla, chairman of the Aditya Birla Group.
The FRP expansion and smelter growth at Sambalpur enables Hindalco to deliver high-quality aluminium solutions across packaging, defence, electric mobility, renewable energy and advanced manufacturing, positioning us strongly to support India's industrial ambitions while creating long-term value, said Managing Director Satish Pai.
Shares of Hindalco Industries settled 1.2% higher at Rs 961.75 on the BSE, compared to a 0.4% rise in the benchmark Sensex. The stock has risen 65% in the last 12 months. The board will consider and approve the third quarter results on Feb. 12.
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