Hindalco Announces Rs 255 Billion Aluminium Expansion

The company plans to invest Rs 210 billion in expanding smelting capacity at its Aditya Aluminium complex in Sambalpur and an additional Rs 45 billion to commission a 170,000-tonne-per-annum flat rolled products and battery-grade aluminium foil manufacturing facility. The projects were inaugurated by Odisha Chief Minister Mohan Charan Majhi.

Hindalco said the initiatives mark a significant step towards indigenising critical raw materials for lithium-ion batteries in India, strengthening the electric mobility and energy storage ecosystem, and enhancing domestic capabilities in high-grade aluminium products.

The projects form part of Hindalco’s broader growth capital expenditure plan, with around Rs 370 billion allocated for upstream and downstream aluminium operations in Odisha. These investments constitute a major share of the company’s overall growth capex of Rs 550 billion across India.

Hindalco is India’s leading flat-rolled products manufacturer with over 50 per cent market share. With around 40 per cent of flat-rolled aluminium currently imported, the company aims to reduce import dependence by nearly 50 per cent through capacity expansion, strengthening domestic production and competitiveness in high-quality aluminium products.

The smelter expansion at Aditya Aluminium is also expected to support India’s energy transition, with a portion of the facility’s power requirements planned to be met through round-the-clock renewable energy.

Kumar Mangalam Birla, Chairman of the Aditya Birla Group, said India’s manufacturing growth depends on integration, value addition and sustainability, adding that Hindalco is building a fully integrated aluminium ecosystem from upstream resources to high-value downstream products. He noted that the company’s partnership with Odisha plays a crucial role in strengthening India’s self-reliance and accelerating the transition towards sustainable manufacturing.

Satish Pai, Managing Director of Hindalco Industries Ltd, said the expansion at Sambalpur reflects the company’s integrated upstream–downstream growth strategy, enabling it to deliver high-quality aluminium solutions across sectors such as packaging, defence, electric mobility, renewable energy and advanced manufacturing.

Hindalco has operated in Odisha for more than 15 years and has invested over Rs 250 billion in bauxite mining, alumina refining, primary aluminium smelting and downstream manufacturing in the state.