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Kumar Mangalam Birla, a billionaire, plans to invest $7.2 billion on an aluminum demand bet.

The billionaire Kumar Mangalam Birla’s company will use the funds to expand its operations in India and North America.

Over the next five years, Hindalco Industries Ltd. plans to invest up to $7.2 billion in expanding its aluminum industry, as global supply bottlenecks and strong demand expectations push prices to new heights.

The billionaire Kumar Mangalam Birla’s company will use the funds to expand its operations in India and North America. In an investor presentation, it stated that it had set aside $2.4 billion for its Indian aluminum operations over the next five years, with consumption expected to treble in the next decade.

During that time, Novelis Inc. will invest up to $4.8 billion in the United States, Brazil, Asia, and Germany, including some previously announced expansions.

Aluminum, which is used in everything from window frames to cans to vehicle parts, hit a new high above $4,000 per tonne earlier this month amid fears of a worsening shortage as a result of Russia’s war in Ukraine. The Mumbai-based firm is increasing its primary aluminium capacity in India after maintaining it at 1.3 million tonnes for the past four years, predicting that prices will remain high due to supply restrictions and strong demand.

Hindalco aims to increase the capacity of its Aditya Mahan smelter in India by 50,000 tonnes by March 2024. It further stated that, among other growth plans, it is exploring building another 180,000 tonnes per year at the same location and establishing a 1 million tonne per year alumina refinery in Odisha.

Hindalco predicts that India’s aluminium consumption will increase to around 8 million tonnes by March 2032, while copper consumption will more than double during the same period. According to the presentation, it has also set aside $286 million for its copper business and $459 million for coal mine development as part of its India expansion plans.

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