Hindalco Unveils Major ₹25,500 Crore Aluminium Expansion in Odisha to Boost Domestic Manufacturing
In a significant move to strengthen India's manufacturing capabilities, Hindalco Industries Ltd, the metals flagship of the Aditya Birla Group, has announced a major expansion of its aluminium operations in Odisha. The company revealed plans to invest a combined ₹25,500 crore across two key projects aimed at enhancing domestic production of critical materials for electric vehicles and energy storage systems.
Details of the Strategic Investment
The investment plan, inaugurated by Odisha Chief Minister Mohan Charan Majhi on Tuesday, 27 January, includes two major components. First, Hindalco will invest ₹21,000 crore to expand its aluminium smelter capacity at the Aditya Aluminium complex located in Sambalpur. Second, the company will commission a new 1.7 lakh-tonne-per-annum Flat Rolled Products (FRP) and battery-grade aluminium foil manufacturing facility with an investment of ₹4,500 crore.
These projects represent a strategic effort to indigenize critical raw materials needed for lithium-ion batteries in India. By developing domestic capabilities in high-grade aluminium products, Hindalco aims to support the growing electric mobility and energy storage ecosystems across the country.
Part of Broader Growth Strategy
The Odisha investments form a crucial part of Hindalco's comprehensive growth capital expenditure plan. The company has allocated approximately ₹37,000 crore specifically for upstream and downstream aluminium operations in Odisha. This substantial commitment contributes significantly to Hindalco's overall growth capex of ₹55,000 crore planned across India.
As India's leading flat-rolled products manufacturer with over 50% market share, Hindalco's expansion addresses a critical gap in domestic production. Currently, about 40% of flat-rolled aluminium is imported into India. The new FRP capacity expansion aims to reduce this import reliance by nearly 50%, thereby boosting domestic production and enhancing India's competitiveness in high-quality aluminium products.
Sustainability and Energy Transition Focus
The smelter expansion at Aditya Aluminium incorporates a strong sustainability component, representing a significant step in energy transition. Hindalco plans to meet part of the facility's energy requirements through round-the-clock renewable energy (RE-RTC) sources, aligning with global environmental standards and India's clean energy goals.
Leadership Perspectives on the Expansion
Kumar Mangalam Birla, Chairman of the Aditya Birla Group, emphasized the strategic importance of this expansion. "India's manufacturing growth depends on integration, value addition and sustainability," he stated. "Through Hindalco, we are building a fully integrated aluminium ecosystem that spans from upstream resources to high-value downstream products."
Birla further highlighted the company's longstanding partnership with Odisha, noting that "This strategy strengthens India's self-reliance, supports critical sectors, and accelerates the nation's transition towards advanced, sustainable manufacturing."
Satish Pai, Managing Director of Hindalco Industries Ltd, elaborated on the integrated approach. "The FRP expansion and smelter growth at Sambalpur exemplify our integrated upstream-downstream growth strategy," he explained. "This enables Hindalco to deliver high-quality aluminium solutions across packaging, defence, electric mobility, renewable energy and advanced manufacturing, positioning us strongly to support India's industrial ambitions while creating long-term value."
Hindalco's Established Presence in Odisha
Hindalco has maintained operations in Odisha for over 15 years, having already invested more than ₹25,000 crore in the state across various segments including bauxite mining, alumina refining, primary aluminium smelting, and downstream manufacturing. This latest investment reinforces the company's commitment to Odisha's industrial development and India's broader manufacturing objectives.
The expansion projects are expected to significantly enhance India's domestic aluminium production capabilities while supporting key sectors including electric vehicles, renewable energy, and advanced manufacturing through improved availability of high-quality aluminium products.
