Hindalco Industries to invest $7.2 bn on aluminum business expansion

Over the next five years, Hindalco Industries Ltd plans to invest up to $7.2 billion in expanding its aluminum business, as global supply shortages and strong demand prospects push prices to unprecedented heights. The billionaire Kumar Mangalam Birla's company will use the funds to expand its operations in India and North America. In an investor presentation, it informed that it has set aside $2.4 billion for its Indian aluminum operations over the next five years, with consumption expected to double in the next decade. During that time, Novelis Inc will invest up to $4.8 billion in the United States, Brazil, Asia, and Germany, including some previously announced expansions. Aluminum, which is used in everything from window frames to cans to auto parts, hit a new high above $4,000 a tonne earlier this month amid fears of a worsening shortage as a result of Russia's war in Ukraine. The Mumbai-based firm is increasing its primary aluminum capacity in India after maintaining it at 1.3 million tonnes for the past few years, predicting that prices will remain high due to supply constraints and strong demand. Hindalco plans to increase the capacity of its Aditya Mahan smelter in India by 50,000 tonnes by March 2024. It said that, among other expansion plans, it is considering adding another 180,000 tonnes per year at the same location and establishing a 1 million tonne per year alumina refinery in Odisha. India's aluminum consumption is expected to increase to around 8 million tonnes by March 2032, while copper consumption is expected to more than double during the same period, according to Hindalco. According to the presentation, it has set aside $286 million for its copper business and $459 million for coal mine development in India as part of its expansion plans. Image Source Also read: Hindalco PAT hikes 95.7% to Rs 3,675 cr in Dec quarter FY21