Hindalco Industries Announces Major Rs 37,000 Crore Investment in Odisha
Hindalco Industries, the metals flagship of the Aditya Birla Group, is significantly ramping up its aluminium ambitions with a substantial focus on Odisha. The company has unveiled plans to invest a staggering Rs 37,000 crore in the eastern state, representing one of its largest capacity expansions in recent years. This strategic move underscores Hindalco's commitment to strengthening its presence in Odisha and contributing to India's manufacturing growth.
Comprehensive Expansion Plans Across Multiple Facilities
The investment will fund a multi-faceted expansion across several key projects in Odisha. Hindalco intends to enhance its aluminium smelter facility located in Sambalpur, setting the stage for increased production capacity. Additionally, the company will establish new manufacturing plants for flat-rolled products (FRP) and battery-grade aluminium foil at the same site. To support these operations, Hindalco will also develop an alumina refinery in Rayagada and initiate two greenfield coal mining projects in Sundargarh.
Breakdown of the Rs 37,000 Crore Investment
This Odisha investment is a crucial part of Hindalco's broader growth capital expenditure of Rs 55,000 crore across India. The allocation includes:
- Rs 21,000 crore to double the aluminium smelter capacity at Sambalpur, raising it to 7.2 lakh tonnes annually.
- Rs 4,500 crore for establishing a 1.7 lakh tonnes FRP facility and a 25,000-tonne aluminium foil plant at the Sambalpur location.
- Rs 11,500 crore dedicated to the alumina refinery in Rayagada and the coal mining projects in Sundargarh.
Leadership Insights on Integration and Sustainability
Aditya Birla Group chairman Kumar Mangalam Birla emphasized the importance of this expansion in the context of India's manufacturing landscape. He stated, "India's manufacturing growth depends on integration, value addition, and sustainability. Through Hindalco, we are building a fully integrated aluminium ecosystem that spans from upstream resources to high-value downstream products. Our long-standing partnership with Odisha continues to play an important role in this journey." This vision highlights Hindalco's strategy to create a seamless supply chain from raw materials to finished goods.
Hindalco's Dominant Position in the FRP Market
As India's largest player in the flat-rolled products segment, Hindalco commands over 50% of the domestic market share. This expansion is expected to further solidify its leadership position, enabling the company to meet growing demand for aluminium products in various industries, including automotive, packaging, and construction.
The investment not only boosts Hindalco's production capabilities but also aligns with national goals of enhancing manufacturing infrastructure and promoting economic development in regions like Odisha.
