Hindalco's foil plant at Silvassa, which went on stream in February this year, produces plain foils and markets most of it in western India, which accounts for 70 per cent of the total foils consumption. For foils manufacturing, Hindalco has a technical tie-up with international aluminium major Reynolds of USA.

In a release, Hindalco's president Askaran Agarwala said: "When we put up this foils plant, its infrastructure and other facilities were so designed as to meet future requirements and expansion as well. Consequently it enables us to substantively add capacities in a very short time-frame and at minimal capital cost far lower in comparison to a greenfield plant."

The move into foil production and consequently increasing capacity will enable the company to improve margins. The company has already set upfacilities to manufacture converted foils and its production is at present underway.

In terms of foils capacity, Hindalco still lags behind India Foils, the largest player which has a 18,000 tonne per annum capacity, and Indian Aluminium Co, which (along with associate company Annapurna Foils) has an installed capacity of 16,000 tonne per annum.