Hindalco Industries Ltd, the metals flagship of the Aditya Birla Group, has recorded its highest annual capital expenditure in nearly a decade, investing ₹18,000 crore in FY25. Chairman Kumar Mangalam Birla confirmed the milestone during the company’s 66th Annual General Meeting held on August 21, 2025, while reaffirming Hindalco’s ambitious $10 billion global investment roadmap through FY30.
The capex surge reflects Hindalco’s aggressive push to scale both upstream and downstream operations across aluminium, copper, specialty alumina, and recycling. With major projects underway in India and abroad—including through its US-based subsidiary Novelis—the company is positioning itself as a global leader in sustainable metals and advanced manufacturing.
🧭 FY25 Capex Snapshot: Strategic Investments Across Value Chain
| Segment | Investment Focus | FY25 Capex Allocation |
|---|---|---|
| Aluminium | Smelter expansion, new alumina refinery | ₹8,500 crore |
| Copper | Smelter expansion, recycling facility | ₹5,000 crore |
| Specialty Alumina | Value-added products, process upgrades | ₹2,000 crore |
| Battery Materials | Foil plant for EVs and energy storage | ₹1,000 crore |
| Sustainability | Hybrid energy, waste repurposing | ₹1,500 crore |
The ₹18,000 crore investment includes greenfield and brownfield projects aimed at boosting production capacity, improving margins, and enhancing ESG performance.
📊 Key Projects Underway in FY25
| Project Name | Location | Capacity Addition | Status |
|---|---|---|---|
| Aditya Aluminium Smelter Expansion | Odisha | +180,000 TPA | Under construction |
| Mahan Aluminium Smelter Expansion | Madhya Pradesh | +360,000 TPA | Commissioning 2026 |
| Greenfield Alumina Refinery | Odisha | 850,000 TPA | Land acquired |
| Copper Smelter Expansion | Dahej, Gujarat | +300,000 TPA | Phase 1 underway |
| E-Waste & Copper Recycling Facility | Pakhajan, Gujarat | World’s 2nd largest | Civil works started |
| Battery Foil Plant | Maharashtra | EV-grade foil production | Operations in 2025 |
These projects are designed to meet rising demand in electric mobility, renewable energy, infrastructure, and electronics.
🔍 Novelis: Global Expansion and Sustainability Vision
Hindalco’s subsidiary Novelis is spearheading global expansion with the $4.1 billion Bay Minette project in Alabama, USA, expected to be commissioned in the second half of CY26. The facility will boost Novelis’ total capacity to 5 million tonnes annually and support its 3×30 Vision—aimed at increasing recycled content from 63% to 75% and reducing carbon emissions.
| Novelis Initiative | Objective | Timeline |
|---|---|---|
| Bay Minette Project | +1.2 million TPA flat-rolled aluminium | H2 CY26 |
| Guthrie Recycling Centre | Automotive scrap recovery | Operational |
| 3×30 Vision | Sustainability and circular economy | By 2030 |
Novelis reported net sales of $17.2 billion and adjusted EBITDA of $1.8 billion in FY25, reinforcing its role as a key growth lever for Hindalco.
🧠 Financial Performance: FY25 Sets New Benchmarks
Hindalco’s consolidated EBITDA rose 38% year-on-year to ₹35,496 crore in FY25, driven by higher volumes, lower input costs, and improved product mix. Net profit for Q1 FY26 surged 30% YoY to ₹4,004 crore on revenue of ₹64,232 crore.
| Metric | FY24 | FY25 | YoY Change |
|---|---|---|---|
| Consolidated Revenue | ₹56,800 crore | ₹64,232 crore | +13% |
| Consolidated EBITDA | ₹25,740 crore | ₹35,496 crore | +38% |
| Net Profit (Q1 FY26) | ₹3,080 crore | ₹4,004 crore | +30% |
| Copper EBITDA | ₹2,100 crore | ₹3,025 crore | +44% |
| Specialty Alumina EBITDA | ₹1,050 crore | ₹1,530 crore | +46% |
The board has recommended a dividend of ₹5 per share for FY25, reflecting strong shareholder returns.
📉 Sustainability at Core: Green Energy and Circular Economy
Hindalco continues to lead in sustainability, ranked the world’s most sustainable aluminium company for the fifth consecutive year by S&P Global. Key initiatives include:
- 100 MW hybrid renewable energy project at Aditya smelter
- Large-scale waste repurposing across plants
- E-waste recycling to recover valuable metals
- Meenakshi coal mine allocation for energy self-sufficiency
| ESG Initiative | Impact |
|---|---|
| Renewable Energy | Reduces carbon footprint |
| E-Waste Recycling | Circular economy, resource recovery |
| Coal Mine Allocation | Energy security, cost efficiency |
| Aluminium Battery Enclosures | EV and mobility sector applications |
Birla emphasized that every tonne of aluminium and copper produced by Hindalco carries “not just economic value, but national purpose.”
🧠 Strategic Outlook: Quadrupling EBITDA by FY30
Hindalco has set a target to quadruple its downstream EBITDA by FY30 compared to FY24, driven by:
- Expansion in value-added aluminium and copper products
- Entry into battery materials and EV components
- Scaling up recycling and specialty alumina
- Global collaborations and customer co-creation
| Strategic Goal | FY30 Target | FY24 Base |
|---|---|---|
| Downstream EBITDA | 4x growth | ₹6,000 crore |
| Aluminium Capacity | 5.5 million TPA | 3.2 million TPA |
| Copper Capacity | 1.2 million TPA | 0.9 million TPA |
| Recycled Content (Novelis) | 75% | 63% |
The company is also exploring advanced alloys for semiconductors, aerospace, and high-speed transportation.
📌 Conclusion
Hindalco’s ₹18,000 crore capex in FY25 marks a pivotal moment in its growth journey, reflecting its commitment to scale, sustainability, and strategic diversification. With a $10 billion investment plan spanning aluminium, copper, recycling, and global operations, the company is poised to shape the future of green manufacturing and industrial innovation.
Chairman KM Birla’s reaffirmation of Hindalco’s vision underscores its role in powering India’s “Viksit Bharat” mission—through clean energy, advanced materials, and inclusive growth.
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Disclaimer: This article is based on publicly available investor briefings and media reports as of August 22, 2025. It is intended for informational purposes only and does not constitute financial, investment, or strategic advice.
