Hindalco Industries Limited has joined hands with Indian Railways to invest around ₹2,000 crore to bring new extrusion and fabrication technologies to India, Kumar Mangalam Birla, chairman, Hindalco Industries Limited, said at the company’s 64th annual general meeting (AGM) on August 22.

“We are even more excited to partner with Indian Railways and the passenger coach manufacturing ecosystem for the ambitious high-speed Vande Bharat trains. An investment of Rs.2,000 crore is planned for the project and technology tie-ups are in place to bring new extrusion and fabrication technologies to India," Birla said.

The company, Birla stated, is making every effort to help the Indian Railway's carbon targets, which include achieving net zero and tripling freight capacity. “We plan to introduce three more designs of freight wagons in the coming months targeting specific end-use applications including bagged cement, and foodgrains," he added.

Further, the company is also planning to invest ₹2,000 crore in first-of-its-kind copper and e-waste recycling facility in India. The move addresses the mounting challenge posed by e-waste, recognized as the foremost waste stream on a global scale.

He said the hazardous nature of e-waste is compounded by improper handling, leading to a significant loss of valuable materials. "At present, due to a lack of advanced metal extraction and refining technologies domestically, a substantial volume of e-waste is exported to other nations. Bringing this cutting-edge technology to India marks a transformative step towards offering a tangible solution, aligned with your company and in fact, our nation’s circular economy agenda," Birla added.

Hindalco will also be looking to expand EV production in India as the company is closely collaborating with original equipment manufacturers (OEMs) to co-develop and produce crucial components like battery enclosures, motor housings, busbars, structural and safety components, lightweight load bodies, etc.

“Our projects for battery foils, coated aluminium fins, aerospace grade extrusions are also on track to make Hindalco an ideal partner for multiple industries to support their new product development and make-in-India initiatives," he said.

Birla went on to explain the company's capital allocation for 2021 and noted that $4.63 billion in capital expenditures for Novelis and India's business are already in the works.

“Novelis has growth projects totaling $3.5 billion underway in the US, South Korea, and Brazil to serve the increasing demand for sustainable aluminium products. Hindalco's India business has ongoing growth projects of around $1.13 billion under execution which include high-growth downstream projects in e-mobility, packaging, building and construction, consumer durables, and resource securitization," he added.

Attributing the increase in private capex to the government’s efforts, Birla said, “The government-led push for infrastructure investments and pragmatic policies such as the production-linked incentives scheme, have led to a surge in private capex. As global corporations actively adopt the China+1 strategy, India is well-positioned to play a pivotal role in this story."

The company's net debt-to-EBITDA (earning before interest, tax, depreciation, and amortisation) ratio was significantly below two times at the conclusion of the fiscal year 2022–23 despite these continual organic expansions.

Hindalco Industries Ltd.'s net profit in the June quarter fell 40% from a year earlier to ₹2,454 crore as revenues declined. Revenue from operations stood at ₹52,991 crore, a 9% decline from a year earlier. Consolidated Ebitda stood at ₹6,109 crore, and the EBITDA margin at 11%.

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