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Hindalco to Setup Aluminium Extrusion Plant with INR 730 Cr.

Hindalco Aditya Birla logo

Hindalco Industries Ltd., the Aluminium and Copper products manufacturer, will be setting up a new Aluminium extrusion plant at Silvassa in U.T. of Dadra and Nagar Haveli. The initial annual capacity of the plant will be around 34,000 tonnes. It is expected to be operational in next 24 months.

Growing Demand for Aluminium in India

In India, total domestic consumption of extruded Aluminium metal, including scrap showed a growth of 11.1% y-o-y from 3.621 million tonnes in 2017-18 to 4.023 million tonnes in 2018-19. Domestic production of extruded Aluminium metal stood at 3.695 million tonnes in in 2018-19.

Industry-wise Aluminium demand in 2018-19 was: Electrical sector (38%), Transport sector (21%), Construction (10%), Consumer Durables (16%), Machinery & Equipment (5%), Packaging (2%) and others (4%).

A Niti Aayog Report in August 2018 pointed out that although both demand and production of extruded Aluminium is increasing, still we are unable to meet our domestic requirements internally. India produced just around 3.3 percent of world’s extruded Aluminium in 2018 whereas China’s market share for the same time period was about 63 percent.

Hindalco’s Proposed Silvassa Plant

Hindalco’s present Aluminium extrusion capacity is around 3,00,000 tonnes per annum. Its existing extrusion plants are at Renukoot in Uttar Pradesh and Alupuram in Kerala, which cater mainly to the Auto, Defence, Aerospace and Industrial segments.

With the proposed Silvassa plant, Hindalco is trying to serve clients in the Western and Southern regions of India concentrating on building & construction, auto & transport, electrical, consumer and industrial goods sectors. The new plant will have three extrusion presses and will be fully automated.

On 7th December 2020 expressing his views on the announcement, Hindalco Industries Ltd. Managing Director, Mr. Satish Pai said “We are seeing a revival in the economy, with demand picking in the building and construction and automotive sectors. This has given us the confidence to move forward”.

Further he said “Our focus on downstream assets is part of our Sustainable Business Model with an emphasis on further de-risking our business from LME volatility”.