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MUMBAI : Hindalco has earmarked $2.5-3 billion of growth capex on a consolidated basis for the next five years, Kumar Mangalam Birla, chairman, Hindalco Industries Ltd, said at the company’s 62nd annual general meeting on Monday.

For Novelis, the capex will primarily be invested for auto-finishing line expansions in the US and China, and for expanding rolling and recycling capacity in Brazil.

“In India, we are on-track to implement organic growth projects entailing a capital outlay of over $1billion towards Utkal alumina expansion, various aluminium and copper downstream expansions, and specialty alumina projects. The investments will advance our strategy of building a more predictable and resilient business model," added Birla.

Hindalco has committed to achieving net carbon neutrality by 2050.

“Our pursuits so far have led to a 17% reduction in specific energy consumption in aluminium production against our target of 25% reduction by 2025," said Birla.

Disposal of bauxite residue, which is a global concern, led the company to identify a solution wherein the residue is used as an input in the cement industry. In the past one year, Hindalco achieved 100% bauxite residue utilization, becoming the first aluminium manufacturer in the world to do so.

In collaboration with other industries, Hindalco continues to strengthen waste utilization and is confident of achieving zero waste to landfill by 2030.

“The company’s focus on increasing recycled content in manufacturing downstream products is stronger than ever, with Hindalco subsidiary Novelis emerging as a leader in recycling with 61% recycled inputs for all products."

Hindalco has brought down its consolidated net debt-to-Ebitda (Earnings before interest, taxes, depreciation, and amortization) to 2.59 times in FY21 from a peak of 3.83 times at the end of June 2020, after closing the acquisition of Aleris.

Birla said the acquisition is a key step towards the diversification of the company’s downstream portfolio into certain premium segments, particularly aerospace. “This year proved to be remarkable for Novelis (+Aleris) as it delivered its best performance, clocking the highest-ever shipments of 3,613 Kt (thousand tonnes); adjusted Ebitda of $1,714 million at Novelis and adjusted Ebitda per tonne of $474 at Novelis," he added.

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