Hindalco announces ₹21,000 crore smelter expansion, ₹4,500 crore FRP project in Odisha. Details here
Aditya Birla Group’s metals company Hindalco Industries Ltd on Tuesday (January 27) announced a major expansion of its aluminum operations in Odisha.
The company plans to invest ₹21,000 crore for smelter expansion and commissioning of 1.7 lakh tonnes per annum Flat Rolled Products (FRP) and battery grade aluminum foil manufacturing facility at Aditya Aluminum complex in Sambalpur. ₹Hindalco said in a statement that it has invested 4,500 crore. The projects were inaugurated by Odisha Chief Minister Mohan Charan Majhi.
The company said these projects aim to be a significant step towards indigenising critical raw materials for lithium-ion batteries in India, which will support electric mobility and energy storage ecosystems and develop indigenous capabilities in high-quality aluminum products.
Hindalco’s capital expenditure plan
The projects are part of Hindalco’s broader growth capital expenditure plan and will cost approximately ₹37,000 crore allocated for Odisha’s upstream and downstream aluminum operations. Investments in the state constitute an important component of the company’s total growth capital. ₹55,000 crore across India.
Hindalco is India’s leading producer of flat rolled products with over 50% market share. Considering that around 40% of flat-rolled aluminum is currently imported to India, the expansion of FRP capacity aims to reduce import dependence by around 50%, increase domestic production and enhance India’s competitiveness in high-quality aluminum products, the company said.
He also stated that the smelter expansion at Aditya Aluminum will also represent a significant step in energy transition and that part of the energy needs are planned to be met by 24-hour renewable energy (RE-RTC).
Speaking about the latest development, Kumar Mangalam Birla, Chairman, Aditya Birla Group, said: “India’s growth in manufacturing depends on integration, value addition and sustainability. Through Hindalco, we are building a fully integrated aluminum ecosystem spanning from upstream sources to high-value downstream products.”
“Our long-standing partnership with Odisha continues to play a key role in this journey. This strategy strengthens India’s self-reliance, supports critical sectors and accelerates the country’s transition to advanced, sustainable manufacturing.”
Meanwhile, Satish Pai, Managing Director, Hindalco Industries Ltd, said: “The FRP expansion and smelter expansion in Sambalpur exemplifies our integrated upstream and downstream growth strategy. This enables Hindalco to deliver high-quality aluminum solutions in packaging, defence, electric mobility, renewable energy and advanced manufacturing, putting us in a strong position to support India’s industrial ambitions while creating long-term value.”
Hindalco has been operating in Odisha for over 15 years and has made over 200 investments. ₹25,000 crore in bauxite mining, alumina refining, primary aluminum smelting and downstream manufacturing.
