Hindalco to invest ₹45,000 crore in aluminium, copper production

Hindalco to invest ₹45,000 crore in aluminium, copper production

  • 20.03.2025 13:19
  • fortuneindia.com
  • Keywords: dangerous, success

Hindalco is investing ₹45,000 crore to expand its aluminium, copper, and specialty alumina businesses, focusing on electric mobility, renewable energy, and recycling. The company has emerged as a global leader in these sectors, with significant growth from modest beginnings to becoming India's largest non-ferrous metals producer.

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Hindalco Industries

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Hindalco is investing ₹45,000 crore in expanding its aluminium, copper, and specialty alumina businesses. The company has a significant market presence, being the largest non-ferrous metals producer in India and a global leader in aluminium, copper, and specialty alumina. Their investment will support electric mobility, renewable energy, and beverage can production while emphasizing recycling. Hindalco's financial performance is strong with net sales of ₹58,390 crore and a 60.23% increase in net profit. The company also has plans to expand its capacity in copper and alumina, aiming to become the top player globally. Their focus on sustainability through recycling and renewable energy solutions positions them as a leader in circular economy practices.

Context

Business Insights and Market Implications

Overview

  • Investment: Hindalco plans to invest ₹45,000 crore to expand its aluminium, copper, and specialty alumina businesses.
  • New Identity: The company has unveiled a new corporate identity, positioning itself as a global leader in these sectors.

Business Segment Focus

Aluminium

  • Production Capacity: Hindalco produces 1.3 million tonnes of primary aluminium annually.
  • Recycling: Through its subsidiary Novelis, it recycles enough material to process 82 billion beverage cans annually.
  • Market Leadership: Hindalco is India’s largest fully integrated producer and Novelis is the world’s largest flat-rolled aluminium product manufacturer.

Copper

  • Production Capacity: Hindalco is the second-largest copper rod producer outside China, targeting over 1 million tonnes of refined copper production.

Alumina

  • Production Capacity: The company produces 3.7 million tonnes of alumina annually, ranking among the top three global specialty alumina players.

Financial Performance (FY 2024)

  • Net Sales: ₹58,390 crore (10.57% YoY growth)
  • Net Profit: ₹3,735 crore (60.23% YoY increase)
  • EBITDA: ₹8,092 crore
  • Earnings per Share (EPS): ₹16.82 (up from ₹10.50)
  • Share Price: Closed at ₹706 with a 1% gain.

Strategic Initiatives

Electric Mobility and Sustainability

  • Focus Areas: Lightweight, fuel-efficient vehicles; battery enclosures for EVs.
  • Recycling: Aims to use over 80% recycled beverage cans as raw material in packaging solutions.

Green Energy

  • Applications: Aluminium and copper are critical for solar modules, wind turbines, and battery storage systems.
  • Renewable Energy Solutions: 100 MW renewable energy solution in Odisha, scaling up to 350 MW.

Battery Materials

  • EV Revolution: Producing aluminium and copper foils for EV batteries at plants in Aditya and Chakan.
  • First-of-its-kind: Setting up India’s first copper foil facility for EVs.

Defence and Space Collaboration

  • Projects: Developing hard alloy products for defence and collaborating with ISRO on components for Chandrayaan and Mangalyaan missions.

Competitive Dynamics

  • Global Presence: Hindalco operates 52 plants across 10 countries.
  • Market Leadership: Strong position in aluminium, copper, and alumina sectors, with significant growth targets.

Long-Term Effects and Regulatory Implications

  • Sustainability Focus: Emphasis on circular economy and renewable energy aligns with global ESG trends.
  • Regulatory Impact: Investments in green technologies may influence industry standards and regulations in India’s industrial sector.

This strategic shift underscores Hindalco’s commitment to innovation, sustainability, and leadership in the non-ferrous metals sector.