Hindalco Industries plans to invest Rs 8,000-10,000 crore in three plants
Aditya Birla group firm Hindalco Industries is planning to invest around Rs 8,000-10,000 crore in Hirakud, Silvassa Mundra plants.
The investment will be for expanding flat rolling capacity at Hirakud, Odisha, new extrusion plant at Silvassa in Dadra Nagar Haveli, in a greenfield site at Mundra in Gujarat with a recycling facility, Hindalco said in its Annual Report 2020-21.
Stating that the company is planning to expits aluminium downstream business with a focus on value-added products (VAP) over the next three-seven years, Hindalco said its products would cater to customised requirement for varied complex applications of aluminium.
The Hirakud plant capacity for flat rolled products is estimated to be 3,40,000 tonne per annum. The planned capacity of the extrusion plant at Silvassa is 34,000 tonne per annum, which would have three extrusion presses to service premium customers in building construction, automobile transport, electrical, consumer industrial good sectors.
In addition, the new extrusion recycling unit at Mundra is awaiting lacquisition process would have a capacity of 93,000 tonne per annum.
In India, the focus continues to be on downstream that constitutes value-added offerings, primarily in the Flat Rolled Products (FRP) extrusions segments.
“With the market segment presenting sizeable untapped opportunities, we are committed to deploying resources to transform this vertical into a future EBITDA growth driver,” the company said.
The Indian demfor aluminium lags behind global demby a significant margin. This, along with the lower per capita consumption of aluminium, bodes well for robust demgrowth in the medium to long term, it added.
The packaging, construction transportation sectors also remain underpenetrated in India compared to global standards, thereby presenting substantial growth avenues that “we are well-placed to explore capitalise on.”
“In terms of our Indian operations, expansion of the Utkal Alumina refinery will increase operational efficiencies even as we continue our investments to modernise the existing alumina capacities, leading to improvement in the quality of output on-site cost efficiencies,” it said.
Investments in revamping older alumina refineries, such as the Renukoot refinery, are expected to reduce operating costs of these refineries in the future.
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