Hindalco to invest ₹45,000 crore in copper, aluminium upstream business: Kumar Mangalam Birla

Hindalco Industries announced on Thursday, March 20, that it aims to invest ₹45,000 crore in its aluminium, copper, and speciality alumina businesses over the next three to four years. The Aditya Birla Group company said the investment will be in delivering upstream and high-precision engineered products.

Kumar Mangalam Birla, chairman of the Aditya Birla Group, said at a company event that Hindalco Industries is on track to surpass one million tons of refined copper production. "The journey marks a transformative path from a metals supplier to an engineered solutions partner," Birla said.

Hindalco is developing automotive and electric vehicle (EV) products and packaging and collaborating with battery manufacturers. Hindalco will offer solutions in “EV mobility, renewable energy, energy storage, semiconductors and high-end electronics," added Birla.

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The fresh investment aims to reposition Hindalco to target new-age businesses from being a traditional metal manufacturing company. “We are enabling lighter, more fuel efficient, and EV-ready vehicles,” the billionaire said while discussing the company’s new direction. He said that Hindalco would also focus on the strategic area of defence and aerospace.

“I think the way to compete and grow is to invest. And I don't think there is any reason for us to wait and watch,” Birla told news agency PTI. Amid concerns over sluggish private sector capex, he said all the basics are right with the health of the economy, the financial strength of companies and the banking's system capabilities to support the private sector's investment intentions.

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Hindalco unveils new brand identity

Speaking at an event to unveil Hindalco's new brand identity, the company's managing director Satish Pai said the new investments will be in a copper smelter, an aluminium smelter, a copper recycling plant, aluminium foil, and copper foil. He said the investments will be made over the next three to four years and that some of the projects have already begun.

Most of the investments are in the upstream operations and not the downstream areas because the company has invested in the latter over the last five years. Pai told PTI later that Hindalco plans to double the downstream share of pre-tax profits to 30 per cent in the next three years.

Apart from margin expansion, he said the higher focus on downstream, which involves value additions rather than just supplying metal, is also beneficial in other aspects, like attracting a talented workforce. Pai said the company will use internal accruals to fund the capital expenditure, adding that he does not see any need for Hindalco to raise debt in FY26.

He added that some refinance activity may occur, which its American subsidiary Novelis may examine in Q4 FY26. The tariff move announced by the US administration is "neutral to positive" for the Aditya Birla Group company.

The surge in commodity prices is positive for the company, but it does not base its business budgeting on the higher margins that it may accrue. He said the auto industry's shift to electric vehicles is not as aggressive as was widely expected initially, but the company is not impacted by it because its plans are conservative.

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Hindalco's infusion in metals biz

Birla said the company wants to be a force for good and affirmed India's largest aluminium producer's commitment to it. "We are committing ₹45,000 crore across aluminium, copper, and speciality alumina businesses to deliver upstream and high-precision engineered products," Birla said at the event.

Aluminium, copper, and alumina are integral to solar modules and battery storage. He added that the company is adding 150 MW to its renewable energy capacity to increase the overall generation possibility to 350 MW.

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Birla said the company has "pioneered" a 100 MW renewable energy solution in Odisha for aluminium smelting, combining wind, solar, and pumped hydro storage for stable, round-the-clock energy. He noted that the company is working on solutions in various areas, including EV mobility, renewable energy, energy storage, semiconductors, and high-end electronics.

Hindalco has helped design and manufacture lightweight battery enclosures for two-wheelers and cars in auto. The company is setting up the country's first Copper Foil facility for EVs and also looking at the high-speed transportation sector, Birla said, pointing out that the first hyperloop test track has Hindalco's high-precision aluminium extrusions.

It is also developing hard alloy products for defence and working with ISRO on one-of-a-kind components for Chandrayaan and Mangalyaan. The head of the conglomerate said Birla Copper is setting up India's first e-waste recycling plant, extracting and recycling metals from discarded devices. Hindalco runs 52 plants worldwide and employs 47,000 people.