Hindalco to invest $10 bn to expand India biz, Novelis: KM Birla

Aditya Birla Group’s metals flagship Hindalco Industries plans to invest $10 billion on the ongoing projects in India and its U.S. subsidiary Novelis Inc.

“Our expansions across the India business and Novelis, will entail investments of $10 billion for ongoing projects as well as the ones envisioned in the near term,” says Kumar Mangalam Birla, chairman, Hindalco Industries.

This includes the aluminium and copper smelter expansions, the Aditya FRP (flat rolled products) plant, the new alumina refinery in Rayagada, and the Bay Minnette expansion in Novelis.

Hindalco is currently evaluating a nearly 200,000 tonne-brownfield expansion at its Aditya Aluminium smelter in Odisha. Hindalco also has plans to expand its Copper smelting capacity and is exploring setting up a brownfield facility in Gujarat to meet the growing needs of the country for this critical metal.

The aluminium producer is setting up a greenfield alumina refinery in Rayagada, Odisha. The first phase of 850,000 tonnes is expected to be commissioned in FY27.

Novelis continues to make steady progress across a number of strategic capital investments, says Birla. The largest among these is the US rolling and recycling investment in Bay Minette. “With a finished goods capacity of 600,000 tonnes, Bay Minette will be a highly sophisticated and automated plant that will provide us with a first-mover advantage. We have already secured long-term contracts for all the new beverage packaging capacity at this plant, which is expected to begin commissioning in the second half of calendar year 2026,” says Birla.

Hindalco is adding new products and solutions that cater to India’s emerging needs, such as infrastructure for EVs and solar energy, says Birla. “Hindalco has invested in key downstream expansions to offer metal solutions and value-added products to our customers. The new assets, such as the Silvassa extrusion plant, the upcoming Aditya Flat Rolled Products plant in Odisha, the battery enclosure fabrication plant at Chakan, the specialised aluminium battery foil plant in Odisha -- are set to transform our operations,” he says.

“Our Silvassa extrusion plant and Chakan battery fabrication plant will be pivotal in tapping into the growing EV market. The aluminium battery foil plant allows us to play in both domestic and international cell manufacturing value chains,” Birla adds.

Net profit of Aditya Birla Group’s metals flagship Hindalco Ltd rose 25% year-on-year to ₹3,074 crore for the quarter ended June. Profit growth was aided by favourable macros, operational efficiencies and lower input costs.

The aluminium producer’s revenue from operations increased 7.6% year-on-year to ₹57,013 crore during the first quarter from ₹52,999 crore in the corresponding quarter a year ago.

Consolidated operating profit or earnings before interest, taxes, depreciation, and amortisation (EBITDA) grew 31% year-on-year to ₹7,992 crore.