Hindalco Announces Rs 21,000 Crore Investment in Odisha to Expand Aluminium Operations

95
28 Jan 2026
4 min read

News Synopsis

Hindalco Industries Limited has announced a major investment in Odisha to strengthen India’s aluminium manufacturing, electric mobility, and green energy ecosystem. The Aditya Birla Group metals major will significantly expand its aluminium operations in the state, aiming to reduce import dependence and boost domestic capacity for high-grade aluminium products.

Hindalco’s Major Investment Plan in Odisha

To accelerate growth in aluminium manufacturing and support India’s clean energy transition, Hindalco Industries Limited has announced a large-scale investment in Odisha. The move is part of the company’s strategy to expand both upstream and downstream aluminium operations while reinforcing domestic manufacturing capabilities.

Following the announcement, Hindalco’s shares returned to investors’ focus, currently trading around Rs 962.

Rs 21,000 Crore Investment for Aluminium Expansion

Smelter Capacity Expansion

Hindalco will invest Rs 21,000 crore to expand smelter capacity at the Aditya Aluminium Complex in Sambalpur, Odisha. The expansion is expected to enhance aluminium output and reduce India’s reliance on imports.

Flat Rolled Products and Aluminium Foil Facility

In addition, the company will invest Rs 4,500 crore to set up a 1.7 lakh tonnes per annum manufacturing facility for:

  • Flat Rolled Products (FRP)

  • Battery-grade aluminium foil

Key Benefits of the Investment

According to the company, these projects will play a crucial role in domesticating raw materials required for lithium-ion batteries. The investment will provide strong support to:

  • Electric vehicles (EVs)

  • Energy storage solutions

  • Renewable energy sector

As part of the smelter expansion, a portion of the energy requirement will be met through round-the-clock renewable energy, accelerating the energy transition.

Part of Hindalco’s Larger Capex Plan

This investment is part of Hindalco’s broader capital expenditure strategy. Under this plan:

  • Around Rs 37,000 crore will be invested in Odisha for upstream and downstream aluminium operations

  • The company has outlined a total growth capex of Rs 55,000 crore across India

Hindalco stated that increased FRP capacity will significantly reduce dependence on imported flat rolled aluminium and benefit sectors such as:

  • Packaging

  • Defence

  • Electric mobility

  • Advanced manufacturing

About Hindalco Industries Limited

Hindalco Industries Limited, the flagship metals company of the Aditya Birla Group, is a $29 billion global metals powerhouse. The company is:

  • The world’s largest aluminium company by revenue

  • The second-largest copper rod manufacturer globally (outside China)

Hindalco operates across the aluminium value chain, including:

  • Bauxite mining

  • Alumina refining

  • Coal mining

  • Captive power plants

  • Aluminium smelting

  • Downstream rolling, extrusion, and foil manufacturing

Through its subsidiary Novelis, Hindalco is a global leader in flat rolled products and the world’s largest recycler of aluminium.

In India, Hindalco is the largest producer of copper, meeting more than half of the country’s copper demand. Its copper facility in Gujarat includes a world-class smelter and refinery complex, downstream facilities, and a captive jetty.

Hindalco has a global footprint spanning 48 manufacturing units across 10 countries and has been ranked the world’s most sustainable aluminium company in the Dow Jones Sustainability Index (DJSI) for six consecutive years — 2020 to 2025.

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