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

PTI
Updated: January 27th, 2026, 18:00 IST
in Business
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aluminium smelter

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New Delhi/Sambalpur: Hindalco Industries Ltd, the metals flagship of the Aditya Birla Group, Tuesday announced a Rs 21,000-crore plan to expand its aluminium smelter in Odisha.

The company has commissioned a Rs 4,500-crore facility for flat rolled products and battery-grade aluminium foil production.

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Aluminium products serve as essential raw materials for lithium-ion batteries in EVs and energy storage systems. These investments align with the Centre’s push to boost domestic manufacturing.

Hindalco’s integrated operations provide employment to nearly 23,000 people, with the next phase expected to generate over 15,000 additional direct and indirect jobs.

In a statement, Hindalco said, “The company flagged a 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 Odisha Chief Minister Mohan Charan Majhi.

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

Hindalco is the country’s largest flat rolled products player, accounting for over 50 per cent of the domestic market. With nearly 40 per cent of flat-rolled aluminium imported into India, the expanded FRP capacity is likely 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, integrating sustainability considerations into large-scale industrial growth.

“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,” Aditya Birla Group Chairman Kumar Mangalam Birla said.

Hindalco’s presence in Odisha spans over 15 years during which it has already invested more than Rs 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.

The broader investment pipeline includes the FRP and battery foil manufacturing facilities, the primary aluminium smelter expansion, Kansariguda alumina refinery, Meenakshi coal mine, specialised materials such as white fused alumina, and ancillary manufacturing units, further consolidating Odisha’s status as a national hub for aluminium excellence.

PTI

Orissa POST – Odisha’s No.1 English Daily
Tags: AluminiumBusinessHindalcoOdisha
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