Wedoany.com Report on Feb 2nd, Hindalco Industries, the metals business of India's Aditya Birla Group, has announced an investment of ₹210 billion to expand its aluminum smelter in Sambalpur, Odisha, increasing its annual capacity by 360,000 tonnes. Concurrently, the company has invested ₹45 billion to launch a flat-rolled products (FRP) and battery-grade aluminum foil manufacturing facility with an annual capacity of 170,000 tonnes. These projects were inaugurated by Odisha Chief Minister Mohan Charan Majhi.
The company stated that these projects will help India achieve localization of key raw materials for lithium-ion batteries, supporting the development of electric mobility and energy storage systems while enhancing domestic manufacturing capabilities for high-quality aluminum products. The battery-grade aluminum foil facility, sourcing raw materials directly from the FRP complex, can support lithium-ion battery manufacturing capacity of up to 100 GWh.
Hindalco indicated that these projects are part of its broader growth plan, involving an investment of approximately ₹370 billion in upstream and downstream aluminum operations in Odisha. The investment in Odisha is a significant component of the company's overall growth capital expenditure of ₹550 billion across India. As India's largest flat-rolled products producer, Hindalco holds over 50% of the domestic market share.
Currently, nearly 40% of India's flat-rolled aluminum relies on imports. The expanded FRP capacity is expected to reduce import dependency by nearly half, support domestic manufacturing, and enhance India's competitiveness in high-grade aluminum products. The expansion of Aditya Aluminum's smelter also reflects progress in the energy transition, with plans to meet part of its power demand through round-the-clock renewable energy, integrating sustainability into industrial growth.
Kumar Mangalam Birla, Chairman of the Aditya Birla Group, commented: "India's manufacturing growth hinges on integration, value addition, and sustainability. Through Hindalco, we are building a fully integrated aluminum ecosystem, spanning from upstream resources to high-value downstream products. Our long-standing partnership with Odisha continues to play a vital role in this journey. This strategy strengthens India's self-reliance, supports critical sectors, and accelerates the nation's transition to advanced, sustainable manufacturing."
Satish Pai, Managing Director of Hindalco Industries, added: "The FRP expansion and smelter growth in Sambalpur exemplify our integrated growth strategy across the value chain. This enables Hindalco to provide high-quality aluminum solutions for packaging, defense, electric mobility, renewable energy, and advanced manufacturing, allowing us to robustly support India's industrial ambitions while creating long-term value."
Hindalco has been operating in Odisha for over 15 years, having invested more than ₹250 billion in areas such as bauxite mining, alumina refining, primary aluminum smelting, and downstream manufacturing. The company's operations connect upstream resources with high-value downstream products like FRP and battery foil, forming a complete aluminum value chain. The broader investment plan also includes the Kansariguda alumina refinery, Meenakshi coal mine, and projects for specialty materials and ancillary manufacturing.
