Is it true that Hindalco is planning to double its capacity at an investment of $1 billion?

In fact, that is an old plan that was shelved and has now been revived. Hindalco has actually revived a $947 million plan to make additional value-added aluminum products. This is to coincide with the recovery in the economy post COVID. This investment of Rs.7000 crore will allow Hindalco to double its annual downstream capacity to 6 lakh tons.

It will set up a 34,000-ton aluminum extrusion project in Silvassa near Gujarat and production was likely to commence in the next 2 years. In June, Hindalco had spoken about slowing down its expansion, but surely times have changed now. The downstream value-added products are expected to be value accretive as they are high margin products.

Hindalco MD, Satish Pai, projected that India’s demand for such value-added downstream products would jump to 850,000 tons by 2030 from 373,000 tons currently and they want to capture the bulk of that boost.