Hindalco to Invest ₹45000 Crore in Aluminium and Copper Expansion, Strengthening Sustainability and Innovation

Hindalco Industries, part of the Aditya Birla Group, plans to invest ₹45,000 crore in its aluminium, copper, and speciality alumina businesses over the next 3-4 years. The investment focuses on strengthening upstream operations and engineered products. Chairman Kumar Mangalam Birla announced that Hindalco is set to surpass one million tons of refined copper production. The company is expanding into EVs, renewable energy, semiconductors, and aerospace.

Managing Director Satish Pai detailed plans for new smelters, a copper recycling plant, and foil production. Hindalco aims to double the downstream share of pre-tax profits to 30% in three years. The company will fund growth through internal earnings without new debt. Hindalco is also expanding renewable energy capacity to 350 MW, including a 100 MW hybrid solution in Odisha. It is developing EV battery enclosures and India’s first copper foil facility. Hindalco is collaborating with ISRO on space components and setting up an e-waste recycling plant. With 52 plants and 47,000 employees, Hindalco is shaping the future of sustainable materials.

Hindalco to Invest ₹45000 Crore in Aluminium and Copper Expansion, Strengthening Sustainability and Innovation

Hindalco Industries, a leading metals company under the Aditya Birla Group, has announced a substantial investment of ₹45,000 crore over the next three to four years to enhance its aluminium, copper, and specialty alumina operations. This initiative aims to strengthen its core production capabilities while expanding into high-tech engineered products, marking a strategic shift towards innovation-driven growth.

Focus on Innovation and Key Sectors

At a recent company event, Chairman Kumar Mangalam Birla revealed that Hindalco is on track to produce over one million tons of refined copper, a significant milestone for the company. He emphasized Hindalco’s transformation from a traditional raw material supplier to a solutions-oriented enterprise. The company is now focusing on key sectors such as electric vehicles (EVs), renewable energy, energy storage, semiconductors, and advanced electronics. Additionally, it is developing advanced materials for the defense and aerospace industries, aligning with global technological advancements.

Investment Breakdown and Strategic Shifts

Managing Director Satish Pai provided further insights into the investment plans, which include the construction of new copper and aluminium smelters, a copper recycling facility, and production units for aluminium and copper foils. While previous investments were concentrated on downstream activities (finished products), Hindalco is now revitalizing its upstream operations (raw material processing) to strengthen supply chains. The company aims to double the contribution of downstream businesses to pre-tax profits, targeting 30% within three years.

Funding and Financial Strategy

The expansion will primarily be funded through internal revenues, with no plans for new debt. However, the company may explore refinancing options for its U.S. subsidiary, Novelis, by FY26. Pai also noted that recent U.S. tariff adjustments on imports are expected to have a neutral or potentially positive impact on Hindalco’s operations.

Sustainability Initiatives

Hindalco is intensifying its green energy efforts by adding 150 MW of renewable capacity, bringing its total to 350 MW. A standout project is its 100 MW hybrid energy setup in Odisha, which integrates solar, wind, and hydro storage to power aluminium smelting—making it a pioneering initiative in India’s metals sector. These measures reinforce the company’s commitment to reducing its carbon footprint.

Pioneering EV and Transportation Solutions

In the EV sector, Hindalco is developing lightweight aluminium battery casings for two-wheelers and cars, enhancing vehicle efficiency. It is also setting up India’s first copper foil manufacturing unit for EV batteries, a crucial component for energy storage. Beyond EVs, the company’s aluminium components are being tested in hyperloop transportation systems, highlighting their potential for high-speed mobility solutions.

Collaborations and National Projects

Hindalco is collaborating with the Indian Space Research Organisation (ISRO) to supply specialized materials for missions such as Chandrayaan and Mangalyaan, supporting India’s space ambitions. Additionally, its subsidiary, Birla Copper, is launching the country’s first e-waste recycling plant to recover precious metals from discarded electronics, addressing both environmental concerns and resource sustainability.

Global Presence and Vision

With 52 facilities worldwide and a workforce of 47,000 employees, Hindalco is strengthening its position as a global leader in sustainable and advanced materials. By balancing upstream expansion with downstream innovation, the company aims to meet increasing industrial demand while promoting eco-friendly practices.

In summary, Hindalco’s multi-billion-rupee investment underscores its commitment to integrating sustainability with technological advancement, positioning itself at the forefront of India’s industrial and environmental progress.