Aditya Birla-owned Hindalco has charted out an expansive strategic roadmap to raise production capacity in both the aluminium and copper segments, as detailed in its investor presentation today.
In the aluminium segment, Hindalco reported total alumina production capacity of 3.74 million tonnes (mnt) and primary aluminium metal output of 1.34 mnt.
In the copper segment, the company has capacities of 421,000 t for copper cathodes and 540,000 t for copper rods. Hindalco’s products serve key industries – construction (32%), other industries (40%), mining (7%), machinery (6%), transport (6%), and electricity (9%) – which collectively represent 60% of India’s industrial GDP.
Growth in aluminium sector
With India’s GDP projected to double by 2030 and increase nine-fold by 2047, the company is strategically poised to capture growth in high-demand sectors such as aluminium, copper, auto, energy, and construction. Favourable policy tailwinds in areas including electric vehicles, sustainable packaging, recycling, and PL further underpin the company’s growing contributions.
Looking at future demand, aluminium consumption is expected to double within the next decade. Domestic demand is forecast to surge from 3.02 mnt to 11.37 mnt, while downstream demand is anticipated to rise from 1.71 mnt to 3.9 mnt, at an 8% and 7% CAGR respectively.
Key sectors, including building and construction (expected to exceed 994,000 t), transport/automotive (rising to 3.74 mnt), packaging (up to 806,000 t), and others (reaching 5.82 mnt), will propel this growth. This expansion is supported by investments in advanced aluminium downstream technologies, such as next-generation presses, high-quality anodizing, and expanded production lines – including a 170,000 t per annum capacity for ULG foil and battery foil stock, with European automation and state-of-the-art casting stations enhancing production efficiency.
Hindalco is also focusing on aluminum battery enclosures for 4W EVs, with 110 kg of aluminium allocated per car and business already secured for 150,000 cars per annum. Plans are underway to broaden this offering to additional OEMs and BESS applications, leveraging the company’s extrusion and FRP capabilities, along with global collaborations and a strong sustainability focus.
In terms of new product developments, Hindalco is expanding its portfolio to include value-added products such as batteries and crash components. The current capacity for battery frames stands at 100,000 t, with potential to scale up to 200,000 t by 2027, targeting 10-20% of the EV market.
The company is also manufacturing battery aluminium foils, aiming to tap into an anticipated market of 40,000 t by 2033. Additionally, its B2C “Home Brand” in India, featuring “Eternia” windows and facades alongside “Totalis” windows, has garnered over 100 channel partners, targeting a market worth ₹40,000 crore.
In the aerospace and defence (A&D) sector, Hindalco is developing billets, sheets/plates, and extrusions in A&D grade alloys, with a market potential estimated between 20,000 to 25,000 t. The company’s customer roster includes major organisations such as ISRO, DRDO, BrahMos, as well as the Navy and Coast Guard, highlighting its critical role in national security and technological advancement.
Hindalco’s growth rests on three pillars:
- Sustainability: The company emphasises on eco-friendly growth with over 100% bauxite residue recycling and is investing in smelter expansions of 180,000 t and 540,000 t using renewable energy and low-carbon sources, along with an alumina refinery expansion of 850,000 t.
- Culture: A strong focus on culture drives innovation and ethical practices, positioning Hindalco for sustained success.
- Digital: Digital tools are being leveraged in its 170,000 t FRP expansion, finishing assets, and ‘Eternia’ branded portfolio to enhance efficiency and customer engagement.
Expansion in copper production
On the copper front, refined copper consumption is projected to grow 2.5 times over the next decade, from 1.12 mnt in FY’25 to 2.54 mnt in FY’35, at an 8% CAGR across most sectors. In the reliable clean energy infrastructure sector, a 9% CAGR in consumption growth is expected from 111,000 t to 271,000 t.
Key sectors such as transport (rising from 180,000 t to 384,000 t), new age lifestyle (from 167,000 t to 356,000 t), urbanisation and smart cities (from 396,000 t to 927,000 t), IoT-enabled industry (from 141,000 t to 307,000 t), and others (from 134,000 t to 295,000 t) are driving this growth.
Hindalco’s expansion of its copper smelting complex, through a brownfield expansion adding 300,000 t of smelting capacity, has increased its total refined copper capacity to approximately 721,000 t, making it the largest smelting complex outside of China.
This expansion is driven by advanced technology aimed at achieving benchmark Environmental, Health, and Safety (EHS) standards and operational excellence. The company is also pioneering India’s first advanced copper and e-waste recycling facility, initially with a 50,000 t capacity scaling to 200,000 t, capable of recovering valuable metals like gold and silver and recycling PCBs from 3 million phones annually.
Downstream expansion in copper includes the launch of India’s first backward-integrated inner grooved copper tube facility, scaling from 25,000 t/annum to 50,000 t for air conditioning and refrigeration, along with a new battery-grade copper foil manufacturing facility (11,500 t/annum) for EVs, BESS, and industrial applications.
Key projects in India
- Aluminium upstream: A 650,000 t alumina greenfield project in Rayagada, a 180,000 t aluminium smelter expansion in Aditya, and 200 MW green energy projects.
- Coal mines: Expansions in Chakla (4.5 MTPA) and Meenakshi (10-12 MTPA).
- Aluminium downstream: Projects include 170,000 t FRP casting, 26,000 t of coated AC fins, 5,000 extrusions, 26,000 t of bicycle parts, 24,000 t of battery foil mill, and 6,500 t of battery enclosures.
- Copper projects: Under execution are a 300,000 t copper smelter, a 50,000 t copper and e-waste recycling facility, and 300,000 t of copper continuous cast rods in Gujarat, along with copper infrastructure projects in Dahej. Downstream, inner groove tubes (22,500 t in Vadodara) and copper batter foil (11,500 t in Gujarat) are also underway.
- Specialty alumina: Expanding with a 20,000 t precipitate hydrate facility in Belagavi and a 60,000 t white fused alumina plant in Aditya.
The total estimated investment across these initiatives is approximately $5,190 million.
Leave a Reply