Hindalco Eyes Copper Self-Sufficiency, Novelis Invests Billions

Hindalco Industries projects India will achieve copper self-sufficiency within the next two years, mirroring its status in aluminum. This ambition is driven by the upcoming commissioning of a 300,000-tpa copper smelter and a 50,000-tpa recycling plant in Gujarat. Additionally, the company is exploring copper mines near Nagpur, aiming to source a larger percentage of its ore domestically.

Novelis, a subsidiary of Hindalco, plans a substantial investment of around $2 billion. The majority of this capital will fund a new greenfield project in Bay Minette, scheduled to begin production by November 2026. The fire-affected Oswego aluminum hot mill is expected to resume operations within a week, with full output anticipated by July 2026. These developments position US operations as a key growth driver for Novelis this fiscal year.

Despite global price fluctuations impacting raw material costs, Hindalco has managed power expenses. The company forecasts double-digit growth in its aluminum downstream EBITDA due to robust demand, even stepping in to supply aluminum to Japan, Korea, and Taiwan. Hindalco's net debt has increased, but it expects a significant reduction in the net debt to EBITDA ratio over the next three years as capital expenditure plans are realized.