Hindalco Industries on Monday announced a Rs 21,000-crore expansion of its aluminium smelting capacity in Odisha, alongside the commissioning of new flat-rolled products and battery-grade aluminium foil facilities, sharpening the company’s push towards integrated, value-added manufacturing.
The company said it will add 3.6 lakh tonnes per annum of smelting capacity at its Aditya Aluminium complex in Sambalpur, while commissioning a 1.7 lakh-tonne-per-annum flat-rolled products and battery foil manufacturing unit, built at an investment of Rs 4,500 crore.
The battery-grade aluminium foil facility is India’s first such unit and is designed to support up to 100 GWh of lithium-ion cell manufacturing capacity.
Drawing inputs directly from the flat-rolled products complex, the facility is expected to play a role in strengthening domestic supply chains for electric mobility and energy storage, sectors that currently rely heavily on imports for specialised aluminium inputs.
Broader Capex Plan
The new projects form part of Hindalco’s broader growth capital expenditure plan, with around Rs 37,000 crore earmarked for Odisha across upstream and downstream aluminium operations. This, in turn, is a significant portion of the company’s total planned growth capex of Rs 55,000 crore across India.
Hindalco said the expanded flat-rolled products capacity would help reduce India’s dependence on aluminium imports, with nearly 40% of flat-rolled aluminium currently sourced from overseas markets. The company expects the new capacity to cut this import dependence by almost half, improving domestic availability of high-grade aluminium used in sectors such as packaging, defence, electric mobility, renewable energy and advanced manufacturing.
The smelter expansion at Sambalpur is also expected to incorporate sustainability considerations, with a portion of its power requirements planned to be met through round-the-clock renewable energy, as the company seeks to lower the carbon intensity of its operations.
Integrated Ecosystem Vision
“India’s manufacturing growth depends on integration, value addition and sustainability. Through Hindalco, we are building a fully integrated aluminium ecosystem that spans from upstream resources to high-value downstream products,” Kumar Mangalam Birla, chairman of the Aditya Birla Group, said.
“Our long-standing partnership with Odisha continues to play an important role in this journey.”
Managing director Satish Pai said the new investments reflect Hindalco’s integrated growth strategy. “The FRP expansion and smelter growth at Sambalpur exemplify our integrated upstream–downstream growth strategy,” he said, adding that this positions the company to support India’s industrial ambitions while creating long-term value.
Hindalco has been present in Odisha for over 15 years and has already invested more than Rs 25,000 crore in the state across mining, refining, smelting and downstream manufacturing.
The company said its existing operations provide employment to nearly 23,000 people, with the next phase of expansion expected to generate over 15,000 additional direct and indirect jobs.