The company owned by billionaire Kumar Mangalam Birla will invest the amount mainly across its businesses in India and North America.
March 31, 2022 / 08:23 AM IST
Kumar Mangalam Birla
Hindalco Industries Ltd. will spend as much as $ 7.2 billion to expand its aluminum business over the next five years, as global supply shortages and strong demand prospects push prices toward unprecedented levels.
The company owned by billionaire Kumar Mangalam Birla will invest the amount mainly across its businesses in India and North America. It has set aside about $ 2.4 billion for its Indian aluminum operations during the five years ending March 2027 as it expects consumption to double in the next decade, it said in an investor presentation.
Unit Novelis Inc. will invest as much as $ 4.8 billion in the U.S., Brazil, Asia and Germany during the period, including some expansions announced earlier.
Aluminum, used in everything from window frames to cans to auto parts, jumped to a record above $ 4,000 a ton earlier this month on fears of a deepening shortage following Russia’s war against Ukraine. The Mumbai-based company is expanding its primary aluminum capacity in India after keeping it steady at 1.3 million tons over the past few years, as it expects prices to remain elevated amid supply constraints and strong demand.
In India, Hindalco plans to expand its Aditya Mahan smelter by 50,000 tons by March 2024. It said it’s also considering adding another 180,000 tons a year at the same location and setting up a 1 million ton a year alumina refinery in Odisha, among other expansion plans.
Hindalco expects India’s aluminum consumption to jump to about 8 million tons by March 2032 and copper usage to more than double in the same period, it said.
As part of its India growth plans, it has also earmarked about $ 286 million for its copper business and $ 459 million for coal mine development, according to the presentation.
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