Hindalco announces Rs 21,000-crore smelter expansion in Odisha

Mumbai: In what was one of the biggest expansion announcements in recent times, the Mumbai-headquartered Hindalco Industries Ltd, the metals flagship of the Aditya Birla Group, will put in a whopping Rs 21,000-crore in smelter expansion in Odisha. 

Hindalco is the world’s largest aluminium company by revenues, and the world’s second largest copper rods manufacturer outside China. 

Hindalco flagged off the Rs 21,000-crore, 3.6 lakh-tonne-per-annum smelter expansion at its Aditya Aluminium complex in Sambalpur and commissioned a 1.7 lakh-tonne-per-annum Flat Rolled Products (FRP) and battery-grade aluminium foil manufacturing facility with an investment of Rs 4,500 crore. The projects were inaugurated by the Odisha Mohan Charan Majhi, according to a press statement issued by Hindalco on Tuesday. 

The Odisha investments are a significant component of the company’s overall growth capex of Rs 55,000 crore across India.

These projects are a major step in indigenising critical raw materials for lithium-ion batteries in India, supporting the electric mobility and energy storage ecosystem, while enhancing domestic capabilities in high-grade aluminium products. 

The battery-grade aluminium foil facility—India’s first of its kind—draws input directly from the FRP complex and is designed to support up to 100 GWh of lithium-ion cell manufacturing capacity.

These projects form part of Hindalco’s broader growth capital expenditure programme, with around Rs 37,000 crore planned for Odisha across upstream and downstream aluminium operations. 

Commenting on the development, Aditya Birla Group Chairman Kumar Mangalam Birla said: “India’s manufacturing growth depends on integration, value addition and sustainability. Through Hindalco, we are building a fully integrated aluminium ecosystem that spans from upstream resources to high-value downstream products. Our long-standing partnership with Odisha continues to play an important role in this journey. This strategy strengthens India’s self-reliance, supports critical sectors, and accelerates the nation’s transition towards advanced, sustainable manufacturing.”

Hindalco Industries Ltd Managing Director Satish Pai, Managing Director said: “The FRP expansion and smelter growth at Sambalpur exemplify our integrated upstream–downstream growth strategy. This enables Hindalco to deliver high-quality aluminium solutions across packaging, defence, electric mobility, renewable energy and advanced manufacturing, positioning us strongly to support India’s industrial ambitions while creating long-term value.”

Hindalco is India’s largest flat rolled products player, accounting for over 50% of the domestic market. With nearly 40% of flat-rolled aluminium currently imported into India, the expanded FRP capacity is expected to reduce import dependence by nearly half, supporting domestic manufacturing and improving India’s competitiveness in high-grade aluminium products. The smelter expansion at Aditya Aluminium will also mark a step forward in energy transition, with a portion of its power requirement planned to be met through round-the-clock renewable energy (RE-RTC), integrating sustainability considerations into large-scale industrial growth.

Hindalco’s presence in Odisha spans over 15 years of strong partnership with the State, during which it has already invested more than ₹25,000 crore across bauxite mining, alumina refining, primary aluminium smelting, and downstream manufacturing. The company’s operations link upstream resources bauxite, alumina, and primary aluminium with high-value downstream products like FRP and battery foil, creating a fully integrated aluminium ecosystem.