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AL CIRCLE

Hindalco projects to invest INR 8,000-10,000 crore in aluminium downstream business

EDITED BY : 2MINS READ

Hindalco Industries Limited, a subsidiary of the Aditya Birla Group is projecting to inject around INR 8,000-10,000 crore at Hirakud, Silvassa, and Mundra facilities in India.

Hindalco projects to invest INR 8,000-10,000 crore

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Hindalco stated in its annual report 2020-21: “The group proposes to invest towards the expansion of flat rolling capacity at Hirakud, Odisha, new extrusion plant at Silvassa in Dadra and Nagar Haveli, and in a Greenfield site at Mundra in Gujarat with a recycling facility.”

“The company is planning to expand its aluminium downstream business with a focus on value-added products (VAP) over the next three-seven years and the products would cater to customised requirements for varied and complex applications of aluminium.”

Hindalco’s Hirakud flat-rolled products facility is estimated to have a capacity of 3,40,000 tonne per annum, while the planned capacity of the extrusion plant at Silvassa is 34,000 tonne per annum, which would have three extrusions, presses to service premium customers in building and construction, Automobile and transport, electrical, consumer and industrial good sectors.

Moreover, the new extrusion and recycling unit at Mundra is awaiting the land acquisition process and would have a capacity of 93,000 tonnes per annum.

The global leader in high-end aluminium flat-rolled products focus in India pursues to be on downstream that constitute value-added offerings, primarily in the Flat-Rolled Products (FRP) and extrusions segments.

The Company added: "With the market segment presenting sizeable untapped opportunities, we are committed to deploying resources to transform this vertical into a future EBITDA growth driver.”

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“The Indian demand for aluminium lags behind global demand by a significant margin. This, along with the lower per capita consumption of aluminium, bodes well for robust demand growth in the medium to long term.”

“The packaging, construction and transportation sectors also remain underpenetrated in India compared to global standards, thereby presenting substantial growth avenues that we are well-placed to explore and capitalise on."

 


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EDITED BY : 2MINS READ

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