Satish Pai urges Government: Guard aluminium and copper from FTAs to save the domestic industry

Hindalco Industries, a prominent player in the aluminium industry under the Aditya Birla Group, faces hurdles from the influx of low-cost aluminium foils due to recent policy changes. Satish Pai, Hindalco's Managing Director, sheds light on the company's strategies amidst this scenario.

Hindalco Industries confronts a pressing issue as the removal of anti-dumping duties on aluminium foil paves the way for increased imports, particularly from countries benefiting from free trade agreements. Satish Pai highlights concerns regarding the impact on the company's packaging segment.

Global dynamics and trade agreements

Pai emphasises the implications of trade agreements, notably with the UAE, which facilitate duty-free imports into India. The involvement of intermediary countries like Thailand in China's aluminium trade adds complexity. He underscores the need to exclude aluminium and copper from such agreements to safeguard domestic interests.

"Now, Oman is also close to signing an FTA with India. In all these FTAs, we have requested the government not to include aluminium and copper because it can affect the domestic industry," implied Pai.

Strategic adjustments and investment plans

In response to market challenges, Hindalco has revised its capital expenditure for the fiscal year, balancing investments between the current and future periods. The company's ambitious target of achieving a 70:30 thermal and green energy mix by 2030 underscores its commitment to sustainability.

Hindalco’s path to sustainability                                                                                                                

Pai discusses Hindalco's approach to decarbonisation and renewable energy adoption, which is crucial for producing low-carbon aluminium. The focus on round-the-clock renewable power aligns with the company's sustainability goals and customer requirements, which are essential for both domestic and export markets.

"We are adding another 50 MW of renewables this year. We are counting on round-the-clock power renewables to get to low-carbon aluminium, which we require for many of our customers and export markets," he asserted.

Government support and expansion initiatives

Acknowledging Odisha's support, Hindalco celebrates the clearance for its battery foil manufacturing project, a significant step in catering to the burgeoning electric vehicle industry. The integration of aluminium and copper foils in electric vehicle batteries aligns with the industry's evolving needs. Hindalco's journey reflects the intricate balance between addressing market challenges and pursuing sustainable growth in the aluminium industry. If you want a detailed purview of the international aluminium industry and its dynamics, go ahead and take a look at AL Circle’s special report, Global Aluminium Industry Outlook 2024.