Hindalco to Expand Copper & Aluminium Production with USD 4-5 Bn. Investment
Hindalco Industries Ltd., part of the Aditya Birla Group, will be investing a total of about USD 4 to 5 billion over the next 3 to 5 years to expand its Copper and Aluminium production. This information was shared by Mr. Satish Pai, Hindalco’s MD, after the company’s Q2 FY-25 earnings call.
Key Greenfield & Brownfield Expansions to Boost Aluminium Production
Hindalco will be expanding its Aluminium production in India through a combination of greenfield and brownfield projects.
Kanshariguda Alumina Refinery to Start Production by Early 2027
Among the greenfield projects, Hindalco is setting up a Rs. 8,000 crore Alumina refinery in Kanshariguda of Odisha’s Raygada district, the first phase of which is set to be commissioned by March 2027. Phase-1 of this project will have a capacity of 850 Kilo Tonne Per Annum (KTPA), whereas upon being fully commissioned, this refinery will have a capacity of 3 Million Metric Tonne Per Annum (MMTPA). The company’s Q2 FY-25 presentation mentioned that this refinery will supply alumina to existing smelters, which will further their cost-effectiveness. “Discussions are underway for long-term supply partnerships to export excess Alumina”, added the presentation. Hindalco will source Bauxite for this refinery from Odisha Mining Corporation Ltd.
Aditya FRP Project to be Live in FY-26
Hindalco is in the process of setting up a 170 KTPA Flat Rolled Products (FRP) plant in Odisha with an ongoing total investment of Rs. 3,763 crore.
Aditya FRP (Flat Rolled Products) project, located in Odisha, targets increasing Hindalco’s total Aluminium downstream capacity to 600 KTPA from the current 430 KTPA. Hindalco’s presentation added, “…the development of other high value-added products such as AC Coated Fins, Battery Foils and Battery enclosures is expected to enhance overall downstream margins in India”. The project, once commissioned, will cater not only to domestic markets but also to global markets.
Some of Hindalco’s Copper Production Enhancement Plans
Copper Smelting Capacity Augmentation, e-Waste & Copper Scrap Recycling Plant Planned
In its Investor presentation, Hindalco mentioned that the company will be adding about 280 to 300 KTPA Copper smelting capacity.
Apart from this, Hindalco will be setting up India’s first e-waste and Copper recycling plant in Dahej, Gujarat with an investment of about Rs. 2,400 crore. The first phase of the project, expected to be commissioned by early 2026, will have a capacity of 50 KTPA, and will produce Copper cathode and precious metals like Silver, Gold, Platinum, Palladium, etc. Currently, 187 acre of land has been acquired for the project, and requisite statutory approvals are awaited.
Mr. Satish Pai, during the company’s earnings call for Q2 of FY-25 said, “…these projects are going to come on stream 3 years down the line…So we have a copper rod capacity of 500 KT, and our copper smelting capacity of 350, and we are putting a new rod mill. Because India needs more and more copper rod”. Mr. Pai explained that the growth rate of Copper production is actually more “stuck” because Copper rod production requires Copper cathodes, and currently India imports cathodes from Japan and other countries. Therefore through increasing Copper smelting capacity and through the Copper recycling plant, Hindalco seeks to reduce Copper cathode import dependence.
Hindalco to Set Up India’s first Inner Grooved Tubes Plant
Hindalco will be setting up India’s first Copper Inner Grooved Tubes (IGT) plant in Vadodara, Gujarat. Construction of this 25 KTPA plant is currently ongoing, and it is expected to be commissioned by early 2025. This plant is being set up with an investment of about Rs. 586 crore.
IGTs are small-diameter Copper tubes which are used to manufacture components of air conditioners, refrigerators and heat exchangers. Currently, these tubes are imported into India from countries such as China, Vietnam, Thailand and Malaysia.
A May 2022 report by the International Copper Association India had projected India’s IGT demand to reach 71 KTPA by 2025 and 111 KTPA by 2030. Hindalco’s plant, therefore could potentially reduce the country’s import dependence for IGTs.
About Hindalco Industries Ltd.: Mumbai-headquartered Hindalco Industries Limited is a key player in the Indian Aluminium and Copper manufacturing space. One of Asia’s largest producers of primary Aluminium, the company reported a consolidated revenue of Rs. 2,15,962 crore from its operations for the year ended 31st March 2024.
