Hindalco to invest INR 2,000 crore for alumina capacity expansion and maintenance work

Hindalco Industries Limited on Friday, August 30, said that it decided to invest INR 2,000 crore this year, majority of which will go into alumina capacity expansion at Utkal Alumina refinery. The rest of the amount will be used towards working capital and maintenance work, said the company further.

Hindalco chairman Kumar Mangalam Birla explained, "We remain focused on strengthening our balance sheet through allocation of capex towards growth strategies and generating positive free cash flows. We have a capex of Rs 2,000 crore, most of which will go towards the capacity expansion of Utkal Alumina refinery and the some towards working capital and maintenance work.”

While addressing shareholders at the 60th annual general meeting, the company said it aimed to double the share of downstream value-added products over the next 5 to 6 years with an investment of around US$1 – US$1.2 billion in India.

"It will also expand its alumina capacities with an expansion at Utkal Alumina refinery by 500 Kt, to be commissioned by FY21. Since per capita aluminium consumption in India is still far below the global average, there is significant potential for higher consumption, given India's current demographic and economic outlook," Kumar Mangalam Birla added.

Further, he said that organic and inorganic expansions Novelis' (the world leader in rolled aluminium products and acquired by Hindalco in 2007) will help drive overall business to the next level with its product diversity and market leadership.

"Novelis announced organic expansion plans of 200 Kt in Kentucky in the US and 100 Kt in Changzhou, China, of the automotive finishing line, which are expected to be commissioned in FY21," Birla noted.

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