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Hindalco lines up new projects to be completed by 2015
Edited by : AL CIRCLE
3 min read
Timely project execution will be the key to growth for Hindalco Industries, the Aditya Birla Group flagship, as the company lines up an array of projects to be commissioned up to 2015. Mahan smelter, Aditya Aluminium along with a power plant, Aditya Alumina and Jharkhand Aluminium are among the prominent projects that will, over the next two to three years, push top line growth for Hindalco.
The company is likely to commission its 360 kilotonnes per annum Mahan smelter in December, while Aditya Aluminium, another 360 ktpa smelter in Odisha, along with a power plant is likely to go online by 2013. Aditya Alumina, an alumina refinery in Koraput, Odisha, is likely to start in 2014 and Jharkhand Aluminium, another aluminium smelter, in 2015.
A senior Hindalco Industries official told Financial Chronicle, “We have done financial closure for most of these projects. We plan to commission the Mahan project by December.”
Initially, the company plans to start with 40 pots within three months after that one pot is likely to be commissioned each day. The management expects around 45 per cent contribution from Mahan Aluminium in 2013-14, said Goutam Chakraborty, an analyst at Emkay Global Financial Services.
Bhavesh Chauhan, an analyst at Angel Broking, said, “The Mahan project has already been delayed by almost a year. The main challenge for the project will be to secure coal, as the company has not received the final nod from the government for its captive coal mine.”
Hindalco is investing Rs 10,500 crore in the Mahan smelter project. Out of this Rs 7,800 crore has been tied up in debt while the remaining amount has been funded through internal accruals. The government had allotted the Mahan coal block at Singrauli in Madhya Pradesh to Essar Power and Hindalco for their 1,200 mw and 900 mw projects, respectively.
While smooth commissioning of all the projects along with timely clearance for the Mahan coal block would boost the company’s revenue, any further delay in projects and further drop in aluminium LME would impact the company’s profit significantly, Chauhan said.
Hindalco recently completed financial closure of its Rs 13,195 crore greenfield Aditya Aluminium Smelter at Lapanga in Odisha, which is likely to be commissioned by the middle of 2013.
The Utkal refinery is likely to be commissioned by 2014. The conveyor belt from mine to refinery, however, is delayed. The company plans to transport bauxite through trucks and hopes to produce 350- 400 kilotonnes alumina. Total capital expenditure has been Rs 4,500 crore, the report said.
Although the company’s revenue is expected to grow because of the capacity addition and expansion, analysts are skeptical about profits.
Aluminium prices have fallen to $2,100 per tonne from $2,700 per tonne a year ago.
The company is likely to commission its 360 kilotonnes per annum Mahan smelter in December, while Aditya Aluminium, another 360 ktpa smelter in Odisha, along with a power plant is likely to go online by 2013. Aditya Alumina, an alumina refinery in Koraput, Odisha, is likely to start in 2014 and Jharkhand Aluminium, another aluminium smelter, in 2015.
A senior Hindalco Industries official told Financial Chronicle, “We have done financial closure for most of these projects. We plan to commission the Mahan project by December.”
Initially, the company plans to start with 40 pots within three months after that one pot is likely to be commissioned each day. The management expects around 45 per cent contribution from Mahan Aluminium in 2013-14, said Goutam Chakraborty, an analyst at Emkay Global Financial Services.
Bhavesh Chauhan, an analyst at Angel Broking, said, “The Mahan project has already been delayed by almost a year. The main challenge for the project will be to secure coal, as the company has not received the final nod from the government for its captive coal mine.”
Hindalco is investing Rs 10,500 crore in the Mahan smelter project. Out of this Rs 7,800 crore has been tied up in debt while the remaining amount has been funded through internal accruals. The government had allotted the Mahan coal block at Singrauli in Madhya Pradesh to Essar Power and Hindalco for their 1,200 mw and 900 mw projects, respectively.
While smooth commissioning of all the projects along with timely clearance for the Mahan coal block would boost the company’s revenue, any further delay in projects and further drop in aluminium LME would impact the company’s profit significantly, Chauhan said.
Hindalco recently completed financial closure of its Rs 13,195 crore greenfield Aditya Aluminium Smelter at Lapanga in Odisha, which is likely to be commissioned by the middle of 2013.
The Utkal refinery is likely to be commissioned by 2014. The conveyor belt from mine to refinery, however, is delayed. The company plans to transport bauxite through trucks and hopes to produce 350- 400 kilotonnes alumina. Total capital expenditure has been Rs 4,500 crore, the report said.
Although the company’s revenue is expected to grow because of the capacity addition and expansion, analysts are skeptical about profits.
Aluminium prices have fallen to $2,100 per tonne from $2,700 per tonne a year ago.
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