Hindalco to Invest ₹21,000 Crore in Odisha, Expands Aluminium Smelter and Battery Foil Capacity

Hindalco Industries Ltd, part of the Aditya Birla Group, has announced a major expansion of its aluminium operations in Odisha. The company will invest ₹21,000 crore to expand its aluminium smelter at the Aditya Aluminium complex in Sambalpur. 

Along with this, Hindalco has also commissioned a new Flat Rolled Products (FRP) and battery-grade aluminium foil manufacturing facility with an investment of ₹4,500 crore. These projects were inaugurated by Odisha Chief Minister Mohan Charan Majhi.

Boost to EV and Energy Storage Ecosystem

The newly commissioned battery-grade aluminium foil facility is India’s first of its kind and will play a key role in supporting lithium-ion battery manufacturing. The plant can support up to 100 GWh of battery production, helping India’s electric vehicle and energy storage sectors grow while reducing dependence on imports.

Part of a Larger Investment Plan

These projects are part of Hindalco’s larger growth capital expenditure programme. The company plans to invest around ₹37,000 crore in Odisha across aluminium-related operations. This forms a significant portion of Hindalco’s overall ₹55,000-crore capex planned across India.

Reducing Import Dependence in Aluminium

Hindalco currently holds over 50% share in India’s flat-rolled aluminium market. As nearly 40% of flat-rolled aluminium is imported, the expanded FRP capacity is expected to reduce import dependence by almost half. This move will strengthen domestic manufacturing and improve India’s competitiveness in high-quality aluminium products.

Focus on Sustainability and Renewable Energy

The smelter expansion at Sambalpur will also support India’s energy transition. A part of the plant’s power requirement will be met through round-the-clock renewable energy, helping reduce carbon emissions and promote sustainable industrial growth.

Leadership Views on the Expansion

Aditya Birla Group Chairman Kumar Mangalam Birla said the expansion supports India’s manufacturing ambitions by focusing on value addition, integration, and sustainability. Hindalco MD Satish Pai added that the projects strengthen the company’s integrated approach, enabling it to serve sectors like EVs, defence, renewable energy, and advanced manufacturing.

Employment and Long-Term Impact in Odisha

Hindalco has already invested over ₹25,000 crore in Odisha over the last 15 years. Its operations currently employ around 23,000 people, and the new projects are expected to create more than 15,000 additional direct and indirect jobs. These investments will further establish Odisha as a major hub for aluminium manufacturing in India.

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Hindalco Industries Share Price Movement

Hindalco Industries share price (NSE: HINDALCO) was trading at ₹964 on the NSE as of 3:30 pm on January 27, gaining ₹13.70 or 1.44% during the session. The stock opened higher at ₹985 and also touched an intraday high of ₹985, while the day’s low stood at ₹950.75. Over the past year, the share has moved between a 52-week high of ₹985 and a 52-week low of ₹546.45. The company offers a dividend yield of 0.52%, with a quarterly dividend amount of ₹1.25 per share.

Conclusion

Hindalco’s latest investments in Odisha mark a major step toward strengthening India’s aluminium ecosystem. By focusing on self-reliance, sustainability, and job creation, the company is well-positioned to support India’s growing needs in EVs, energy storage, and advanced manufacturing.

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