Hindalco to restart all projects on hold, plans to invest Rs 2,700 cr
Company News

Hindalco to restart all projects on hold, plans to invest Rs 2,700 cr

Hindalco Industries, an Aditya Birla Group company, plans to restart all projects halted due to the Covid pandemic and invest approximately Rs 2,700 crore in this fiscal year, compared to Rs 1,600 crore in FY21.

Due to Covid, the company reduced its proposed Capex from 2,500 crore in June and halted a downstream project in Hirakud, Western Odisha. It also slowed the construction of a 34,000-tonne aluminium extrusion plant in Silvassa, with a Rs 730-crore investment.

According to Satish Pai, Managing Director of Hindalco Industries, teh demand for aluminium has surpassed pre-Covid levels, and the company is confident that the revival in demand will continue in the coming days despite concerns about the third wave of Covid.

Unlike last year, there has been no exodus of employees this year, and the plants are operating at peak efficiency, he said.

The most difficult challenge now is to vaccinate the entire workforce as soon as possible rather than to halt the exodus, he added.

Despite the local Covid restrictions, aluminium demand from packaging, building, and construction has been strong, while sales to the automobile sector have slowed since April, according to Pai.

Despite the local Covid restrictions, aluminium demand from packaging, building, and construction has been strong, according to Pai, while sales to the automobile sector have slowed since April.

In response to the drop in copper demand, Pai stated that the sharp increase in copper prices has increased the working capital needs of user industries, resulting in the slowdown of a few projects. Copper demand is roughly 85% of what it was pre-Covid.

Concerning the user industry's concern about high metal prices, he stated that strong demand and a lack of supply have been driving prices in the international market, and the user industry must deal with the current prices because they are market-driven.

Initially, a few projects were halted in the hope that copper prices would fall, but instead, they began to rise, he said.

The increase in the spread between aluminium and scrap prices has pushed up scrap imports into India, despite the fact that aluminium imports have remained reasonable, he said.

According to Pai, the government should set the remission rate for the aluminium sector under the RoDTEP (Remission of Duties or Taxes on Export Products) scheme at 5% as soon as possible so that Indian exports remain competitive in global markets.

Image Source


Also read: Gensets: Sectors generating business

Also read: Bosch stops production at Nashik plant till May 23

Hindalco Industries, an Aditya Birla Group company, plans to restart all projects halted due to the Covid pandemic and invest approximately Rs 2,700 crore in this fiscal year, compared to Rs 1,600 crore in FY21. Due to Covid, the company reduced its proposed Capex from 2,500 crore in June and halted a downstream project in Hirakud, Western Odisha. It also slowed the construction of a 34,000-tonne aluminium extrusion plant in Silvassa, with a Rs 730-crore investment. According to Satish Pai, Managing Director of Hindalco Industries, teh demand for aluminium has surpassed pre-Covid levels, and the company is confident that the revival in demand will continue in the coming days despite concerns about the third wave of Covid. Unlike last year, there has been no exodus of employees this year, and the plants are operating at peak efficiency, he said. The most difficult challenge now is to vaccinate the entire workforce as soon as possible rather than to halt the exodus, he added. Despite the local Covid restrictions, aluminium demand from packaging, building, and construction has been strong, while sales to the automobile sector have slowed since April, according to Pai. Despite the local Covid restrictions, aluminium demand from packaging, building, and construction has been strong, according to Pai, while sales to the automobile sector have slowed since April. In response to the drop in copper demand, Pai stated that the sharp increase in copper prices has increased the working capital needs of user industries, resulting in the slowdown of a few projects. Copper demand is roughly 85% of what it was pre-Covid. Concerning the user industry's concern about high metal prices, he stated that strong demand and a lack of supply have been driving prices in the international market, and the user industry must deal with the current prices because they are market-driven. Initially, a few projects were halted in the hope that copper prices would fall, but instead, they began to rise, he said. The increase in the spread between aluminium and scrap prices has pushed up scrap imports into India, despite the fact that aluminium imports have remained reasonable, he said. According to Pai, the government should set the remission rate for the aluminium sector under the RoDTEP (Remission of Duties or Taxes on Export Products) scheme at 5% as soon as possible so that Indian exports remain competitive in global markets. Image SourceAlso read: Gensets: Sectors generating business Also read: Bosch stops production at Nashik plant till May 23

Next Story
Technology

We’re building robots that flow, not just move

Founded in 2021, Flo Mobility is reimagining construction automation with vision-AI robots designed for seamless movement through complex sites. In conversation with CW, Manesh Jain, Founder & CEO, discusses the company’s origin, its LiDAR-free tech stack, and expansion plans in the Middle East and US.What inspired the name Flo Mobility? Why ‘Flo’ and not ‘Flow’?When we started the company in 2021, our focus was on building autonomous navigation systems for robots. Since our work centred around robot movement, ‘mobility’ naturally became part of the name. We wanted to co..

Next Story
Real Estate

We’re committed to setting benchmarks in sustainable luxury living

From a landmark land acquisition in Boisar to ambitious launches across the Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Bengaluru and Pune, Birla Estates is driving future-ready growth with a strong focus on sustainability, partnerships and premium living, firmly anchored in its LifeDesigned® philosophy. K T Jithendran, Managing Director & CEO, outlines the company’s premium, sustainable growth playbook in conversation with PRATAP PADODE, Editor-in-Chief, CW. Excerpts:Birla Estates recently acquired a 70.92-acre land parcel in Boisar, Maharashtra, for..

Next Story
Infrastructure Urban

Mumbai’s land crunch and ageing homes call for structured renewal

Founded in 2022, Etonhurst Capital Partners is a real-estate fund management platform focused on the Indian market. As the firm achieves the first close of Rs 1.8 billion for its debut Rs 5 billion fund, Bamasish Paul, Co-founder, Managing Partner & CEO, discusses its sharp focus on redevelopment-driven value creation in Mumbai’s urban core with CW. Excerpts:Etonhurst Capital has achieved a significant milestone with the first close of Rs 1.8 billion for its Rs 5 billion fund. What factors contributed to this early success and how do you plan to attract further investments to r..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?