Hindalco to Invest Rs 150 Bn to Expand Aluminium Smelting

25 Feb 2025 CW Team

Hindalco already has a strong presence in Madhya Pradesh, with existing investments worth Rs 250 billion, primarily focused on its world-class aluminium smelter in Mahan, Singrauli district. The new investment aims to strengthen Hindalco’s operations, generate employment, and contribute to the local economy. Pai also addressed the impact of global trade policies, particularly in the United States, highlighting that Hindalco’s American subsidiary, Novelis, benefits from recent tariffs. He noted that Hindalco in India does not export aluminium to the US, making the overall impact neutral to positive for the company.

Beyond Hindalco, other Aditya Birla Group entities such as UltraTech Cement and Grasim’s Viscose Staple Fibre (VSF) division are also pursuing independent projects in Madhya Pradesh, further bolstering the group’s industrial footprint in the region. The Madhya Pradesh government has welcomed the investment, recognising it as a significant step towards positioning the state as a key hub for aluminium production and industrial development. The expansion is expected to create substantial employment opportunities and drive economic growth.

The GIS-2025 summit serves as a crucial platform for boosting Madhya Pradesh’s economy by attracting major investments and fostering strategic partnerships. With participation from leading industrialists, diplomatic representatives, and international trade organisations, the event is poised to solidify Madhya Pradesh’s status as a prime investment destination in India.

Hindalco Industries, a flagship company of the Aditya Birla Group, has signed a Memorandum of Understanding (MoU) with the Madhya Pradesh government to invest Rs 150 billion over the next two years. The announcement was made at the Madhya Pradesh Global Investors Summit (GIS) 2025 in Bhopal, reinforcing the company’s commitment to industrial expansion in the state. Hindalco’s Managing Director, Satish Pai, confirmed the investment, stating that a significant portion will be allocated to a new aluminium smelting capacity, while the group will also open a large mine called Banda. Hindalco already has a strong presence in Madhya Pradesh, with existing investments worth Rs 250 billion, primarily focused on its world-class aluminium smelter in Mahan, Singrauli district. The new investment aims to strengthen Hindalco’s operations, generate employment, and contribute to the local economy. Pai also addressed the impact of global trade policies, particularly in the United States, highlighting that Hindalco’s American subsidiary, Novelis, benefits from recent tariffs. He noted that Hindalco in India does not export aluminium to the US, making the overall impact neutral to positive for the company. Beyond Hindalco, other Aditya Birla Group entities such as UltraTech Cement and Grasim’s Viscose Staple Fibre (VSF) division are also pursuing independent projects in Madhya Pradesh, further bolstering the group’s industrial footprint in the region. The Madhya Pradesh government has welcomed the investment, recognising it as a significant step towards positioning the state as a key hub for aluminium production and industrial development. The expansion is expected to create substantial employment opportunities and drive economic growth. The GIS-2025 summit serves as a crucial platform for boosting Madhya Pradesh’s economy by attracting major investments and fostering strategic partnerships. With participation from leading industrialists, diplomatic representatives, and international trade organisations, the event is poised to solidify Madhya Pradesh’s status as a prime investment destination in India.

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