Hindalco signs MoU to invest ₹15000 crore in aluminium capacity expansion in Madhya Pradesh

Hindalco has announced that it will invest INR 15,000 crore (USD 1.81 billion) in the Indian state of Madhya Pradesh to expand the company’s aluminium smelting capacity in both current and new sites. The investment was announced at the Madhya Pradesh Global Investors Summit 2025 in Bhopal after signing a Memorandum of Understanding (MoU) with the Madhya Pradesh government.

Image Source: https://www.hindalco.com

Speaking to ANI, Hindalco’s Managing Director Satish Pai commented, “In the next two years, we will be investing about INR 15,000 crores just from the Hindalco side. And we will also be opening a large mine called Banda from the group side.”

Hindalco has a state-of-the-art aluminium manufacturing facility in Madhya Pradesh, with pre-invested INR 25,000 crore (USD 3.01 billion) dedicated to its aluminium smelter in Mahan.

Mahan Aluminium, in Bargawan, Singrauli district, Madhya Pradesh, is an integrated aluminium smelting facility comprising 359 KTPA of aluminium smelter backed by a 900 MW power plant.  The new investment aims to boost the company’s operations further and foster the local economy.

In a relatively short period, Mahan has become the desired choice for many of the world’s patrons in the primary aluminium sector. Over 40 per cent of its total production is exported to various countries, including the USA, Japan, Korea, Mexico, and Israel.

Pai also highlighted the impact of global trade policies on Hindalco’s operations, specifically in the United States, “Hindalco has a very large American subsidiary called Novelis. So, for the consolidated Hindalco, we believe that these tariffs are neutral to positive because our American subsidiary benefits and Hindalco in India does not really export aluminium to the US. So for us, we are neutral to positive.”

The Madhya Pradesh government has well-received Hindalco’s investment, viewing it as a decisive step in enriching the state’s status as an essential hub for aluminium production and industrial evolution. This expansion is anticipated to create tangible employment opportunities and elevate economic growth in the region.