Hindalco Industries to focus on global expansion, reduce capex
Real Estate

Hindalco Industries to focus on global expansion, reduce capex

With a strong aluminium demand, Hindalco Industries will be focusing on expanding its global and domestic market by the next quarter. The company has reduced its capital expenditure to Rs 2,400 crore in FY22.

Managing Director of Hindalco Industries, Satish Pai, told the media that the company lost a few months due to the Covid-19 pandemic and ended the CAPEX for FY22 about Rs 300 crore less than planned.

Previously, the Aditya Birla Group acquired Ryker Base Private Limited for an enterprise value of Rs 323 crore. This acquisition will boost Hindalco Industries copper rod manufacturing capacity by providing a time-to-market advantage, allowing the company to cater to the growing demand from the electronics sectors.

The company invested $130 million to upgrade its operations in New York to meet the requirements of sustainable, aluminium flat-rolled products.

Pai said that 2021 would end with a global aluminium deficit of one million tonnes and expected to grow due to high demand from packing, industries and transportation.

The consolidated earnings before taxes, depreciation and amortisation (EBITDA) increased by 56% year-on-year (YoY) to Rs 8,048 crore and 19% sequentially.

Despite the outbreak of the Covid-19 pandemic in Europe and China, the company was not much affected.

Though the Ministry of Mines has tweaked the mining norms, allowing captive ore production for sale, Hindalco Industries will not participate in selling the commodity.

Pai said that the annual consumption of bauxite by the company is about 10 million tonnes, and the company has four smelters, so it will not sell bauxite to third parties. The company also plans to divert some of its ore to the Belgaum smelter, which will require importing the ore.

Its four smelters are in Utkal, Renukoot, Moori and Balgaum. It is involved in the sale of value-added products. The company will continue to sell alumina to Vedanta Limited.

The September quarter was difficult for aluminium producers due to the shortage of coal. Pai added that the company managed to keep stocks for 30 days before the monsoon and escaped the crisis.

Image Source

Also read: Hindalco Q2 results FY22: Net profit surges 788% at Rs 3,417 cr
Also read: Hindalco earmarks $2.5-3 billion capex for next five years

With a strong aluminium demand, Hindalco Industries will be focusing on expanding its global and domestic market by the next quarter. The company has reduced its capital expenditure to Rs 2,400 crore in FY22. Managing Director of Hindalco Industries, Satish Pai, told the media that the company lost a few months due to the Covid-19 pandemic and ended the CAPEX for FY22 about Rs 300 crore less than planned. Previously, the Aditya Birla Group acquired Ryker Base Private Limited for an enterprise value of Rs 323 crore. This acquisition will boost Hindalco Industries copper rod manufacturing capacity by providing a time-to-market advantage, allowing the company to cater to the growing demand from the electronics sectors. The company invested $130 million to upgrade its operations in New York to meet the requirements of sustainable, aluminium flat-rolled products. Pai said that 2021 would end with a global aluminium deficit of one million tonnes and expected to grow due to high demand from packing, industries and transportation. The consolidated earnings before taxes, depreciation and amortisation (EBITDA) increased by 56% year-on-year (YoY) to Rs 8,048 crore and 19% sequentially. Despite the outbreak of the Covid-19 pandemic in Europe and China, the company was not much affected. Though the Ministry of Mines has tweaked the mining norms, allowing captive ore production for sale, Hindalco Industries will not participate in selling the commodity. Pai said that the annual consumption of bauxite by the company is about 10 million tonnes, and the company has four smelters, so it will not sell bauxite to third parties. The company also plans to divert some of its ore to the Belgaum smelter, which will require importing the ore. Its four smelters are in Utkal, Renukoot, Moori and Balgaum. It is involved in the sale of value-added products. The company will continue to sell alumina to Vedanta Limited. The September quarter was difficult for aluminium producers due to the shortage of coal. Pai added that the company managed to keep stocks for 30 days before the monsoon and escaped the crisis. Image Source Also read: Hindalco Q2 results FY22: Net profit surges 788% at Rs 3,417 cr Also read: Hindalco earmarks $2.5-3 billion capex for next five years

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