Hindalco earmarks $2.5-3 billion capex for next five years

Hindalco Industries Limited, a subsidiary of Aditya Birla Group company, has earmarked capital expenditure (capex) of $2.5 to $3 billion on a consolidated basis over the next five years. Hindalco Industries Chairman, Kumar Mangalam Birla, said the company is on track to execute organic growth projects involving a capital outlay of over $ 1 billion towards Utkal alumina expansion, specialty alumina projects, various aluminum and copper downstream expansions. In Novelis, the capex will be invested chiefly in auto-finishing line expansions in the United States and China and rolling and recycling capacity expansions in Brazil. These investments will push the strategy of building a more predictable and resilient business model, Birla said. The company had recorded a net profit of Rs 2,787 crore in the quarter ended June 30, against a net loss of Rs 709 crore in the same period last year, driven mainly by the higher realisation and better contribution by Novelis. Novelis reported an all-time high quarterly earnings before interest, taxes, depreciation, and amortisation (EBITDA) of Rs 4,090 crore against Rs 1,919 crore due to an increase in innovative and sustainable aluminum products demand. The last 18 months have been among the toughest times for the industry with an unprecedented passage of time that has tested the corporations' and individuals' resilience. Through this unsettling period, it has been exciting to see how the Hindalco ecosystem developed and grew, he added. Birla said companies need to look beyond short-term aims to ensure sustainable growth in the fast-changing world. Image Source Also read: JSW Infrastructure aims Rs 10,000 crore capex over five years Also read: Coal India plans Rs 17,000 cr capital expenditure target in FY22