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Hindalco Boosts Odisha Output, Eyes Import Cut
27 Jan
Summary
- Hindalco announced a Rs 21,000 crore expansion of its Odisha aluminium smelter.
- New facilities include a battery-grade aluminium foil plant for lithium-ion cells.
- Expansion aims to cut India's flat rolled aluminium imports by nearly half.
Hindalco Industries has unveiled a substantial Rs 21,000 crore expansion of its aluminium smelter in Sambalpur, Odisha. This significant capacity addition includes 3.6 lakh tonnes per year of primary aluminium and a new 1.7 lakh tonnes per year flat rolled products (FRP) mill. The investment also inaugurates India's first battery-grade aluminium foil plant, a critical component for the rapidly expanding lithium-ion cell manufacturing sector.
This strategic development is poised to drastically decrease India's dependence on imported flat rolled aluminium, which currently accounts for nearly 40% of the domestic market. The new FRP capacity is expected to halve this import reliance, thereby enhancing domestic production capabilities and improving cost efficiencies. The company is also integrating renewable energy sources to power a portion of the new smelter's operations, moving towards lower-carbon aluminium production.
The expansion is part of Hindalco's broader Rs 37,000 crore investment pipeline in Odisha and contributes to its nationwide capital expenditure plan. Beyond industrial gains, these new projects are projected to generate over 15,000 additional direct and indirect jobs in Odisha, where the company's existing operations already employ around 23,000 people. The expansion aligns with national goals of achieving self-reliance in manufacturing.
