+
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

Related Stories

Gold Stories

Next Story
Real Estate

Peninsula Land launches 19 luxury villas in Pune

Pune’s residential landscape is witnessing a shift as premium homebuyers increasingly seek larger spaces, privacy and independent living options beyond high-rise apartments. Addressing this demand, Peninsula Land Limited, part of the Ashok Piramal Group, has launched AshokVillas, an exclusive collection of 19 premium furnished villas in Gahunje, Pune.The development combines the independence of a standalone home with the convenience and security of a managed residential community. Designed around low-density horizontal living, AshokVillas offers residents private spaces while providing acces..

Next Story
Infrastructure Urban

MyBranch Expands South India Network with 16 Workspace Centres

MyBranch has expanded its South India presence with a 50,000 sq ft flexible workspace network comprising 16 centres across 14 cities in Andhra Pradesh, Karnataka, Tamil Nadu and Telangana.The expansion reflects growing demand for flexible office infrastructure as businesses establish regional teams, satellite offices and operations beyond traditional metropolitan markets. MyBranch’s network spans Bengaluru, Coimbatore, Guntur, Hanamkonda, Hubballi, Hyderabad, Madurai, Mangaluru, Rajahmundry, Salem, Tirupati, Vellore, Vijayawada and Visakhapatnam, with a large office space in Chennai also und..

Next Story
Building Material

Walplast Launches Moisture-Resistant Gypsum Plaster Solutions

Walplast Products Pvt. Ltd. has expanded its HomeSure GypEx portfolio with the launch of GypEx MoistShield and GypEx Gold, two gypsum plaster solutions designed to address moisture-prone applications and improve plastering efficiency.The new products have been developed in response to the growing demand for faster construction processes, improved material performance and consistent surface quality. The solutions aim to simplify interior plastering while addressing specific application requirements across construction environments.“Through HomeSure GypEx MoistShield and GypEx Gold, we are exp..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code