Hindalco's ₹21,000-crore Odisha expansion to boost aluminium self-reliance, tech advancement

Hindalco Industries Ltd, the metals flagship of the Aditya Birla Group, has unveiled a substantial expansion of its aluminium operations in Odisha, marking a milestone in India's drive towards manufacturing self-reliance and technological advancement. The company announced a Rs 21,000-crore expansion at its Aditya Aluminium complex in Sambalpur, increasing smelting capacity by 3.6 lakh tonnes per annum, alongside the commissioning of a 1.7 lakh-tonne-per-annum Flat Rolled Products (FRP) and battery-grade aluminium foil facility with an investment of ₹4,500 crore. These projects were inaugurated by Odisha CM  Mohan Charan Majhi, and form part of Hindalco’s ongoing ₹37,000-crore investment programme in the state.

The new facilities are designed to indigenise critical raw materials for lithium-ion batteries, supporting India’s electric mobility and energy storage ecosystem. The battery-grade aluminium foil plant, the first of its kind in India, sources input directly from the FRP complex and will support up to 100 GWh of lithium-ion cell manufacturing capacity. This integration is expected to enhance the country’s capabilities in high-grade aluminium products and provide a crucial supply chain link for advanced manufacturing sectors.

As part of its broader capital expenditure strategy, Hindalco plans to invest around ₹55,000 crore across India, with Odisha representing a significant focus area. The company’s investments in the state cover both upstream and downstream operations, aiming to consolidate Odisha’s position as a national hub for aluminium excellence. The FRP expansion is expected to halve India’s dependency on imported flat-rolled aluminium, with the company currently holding over 50% of the domestic market share.

Nearly 40% of flat-rolled aluminium in India is currently imported. The expanded FRP capacity is set to reduce import dependence by almost half, thus promoting domestic manufacturing and enhancing India’s competitiveness in producing advanced aluminium materials. The smelter expansion also marks a step forward in sustainable development, with a portion of the new facility’s power requirements to be met through round-the-clock renewable energy solutions.

Kumar Mangalam Birla, Chairman of the Aditya Birla Group, noted: "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."

Satish Pai, Managing Director of Hindalco Industries Ltd, 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’s operations

Hindalco’s operations in Odisha span more than 15 years, with over ₹25,000 crore already invested in bauxite mining, alumina refining, primary aluminium smelting, and downstream manufacturing. The integrated approach links upstream resources with high-value downstream products, aiming to foster a fully integrated aluminium ecosystem that benefits multiple strategic sectors of the Indian economy.

The company’s integrated facilities currently provide employment to nearly 23,000 people, with the latest phase of expansion projected to generate over 15,000 additional direct and indirect jobs. The investment pipeline also includes projects such as the Kansariguda alumina refinery, Meenakshi coal mine, and white fused alumina manufacturing, all contributing to Odisha’s stature as a leading centre for aluminium manufacturing in India.

Shares of Hindalco Industries rose 1.12 per cent to Rs 960.90 early in Tuesday’s session, supported by strong trading volumes and a notable volume surge. The stock, a constituent of the Nifty 50 index, later settled higher, closing at Rs 964, up 1.44 per cent for the day.