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Hindalco to raise value-added product output
Edited by : AL CIRCLE
2 min read
Hindalco Industries, India’s biggest aluminium producer, is planning to raise its high-margin value-added product (VAP) share in overall production to 57% from the current 47% in two years.
VAP share was 43% in total production for the last fiscal against the annual average of 40%.
“For increasing the share of VAP in the overall product portfolio, assets have to be introduced. We are in the process of doing that and will be slowly increasing the share of this segment over time,” said Debnarayan Bhattacharya, Managing Director, Hindalco.
“We have already solidified our Indian business’ VAP strategy with Hirakud FRP and Mouda Foils projects, but at the same time our pure metals capacity is also getting commissioned,” he said.
Currently, the company is almost trebling its aluminium smelting capacity from 0.6 million tonne per annum (mtpa) to 1.7 mtpa through two greenfield projects – Mahan and Aditya. Also, it is increasing its alumina capacity from 1.5 mtpa to 3 mtpa.
On the value added front, the company would operationalise its 135,000 tonne flat rolled product capacity at Hirakud this year and Mouda Foils with a similar capacity.
The strategy is in line with its US-based can-body and automotive aluminium producing subsidiary – Novelis Inc., which is also targeting a cost reduction and higher margins through the use of more recycled aluminium products.
VAP share was 43% in total production for the last fiscal against the annual average of 40%.
“For increasing the share of VAP in the overall product portfolio, assets have to be introduced. We are in the process of doing that and will be slowly increasing the share of this segment over time,” said Debnarayan Bhattacharya, Managing Director, Hindalco.
“We have already solidified our Indian business’ VAP strategy with Hirakud FRP and Mouda Foils projects, but at the same time our pure metals capacity is also getting commissioned,” he said.
Currently, the company is almost trebling its aluminium smelting capacity from 0.6 million tonne per annum (mtpa) to 1.7 mtpa through two greenfield projects – Mahan and Aditya. Also, it is increasing its alumina capacity from 1.5 mtpa to 3 mtpa.
On the value added front, the company would operationalise its 135,000 tonne flat rolled product capacity at Hirakud this year and Mouda Foils with a similar capacity.
The strategy is in line with its US-based can-body and automotive aluminium producing subsidiary – Novelis Inc., which is also targeting a cost reduction and higher margins through the use of more recycled aluminium products.
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