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Hindalco to undertake ~$10 billion capex

ICICIdirect Research 23 Aug 2024 DISCLAIMER

Indian Operation:

Overall, Domestic Capex has increased from the earlier planned ~$1.3 billion to ~$5 billion, with projects expected to be commissioned between FY25E and FY27E.
One of the pivotal projects of HIL is the greenfield alumina refinery capacity in Rayagada, Odisha. The first phase with a capacity of 850 kt is expected to commissioned in FY27 with an estimated capex of ~$950 million (~₹8,000 crore).
HIL is also expected to undergo brownfield expansion in Aditya Aluminium Smelter in Odisha, increasing capacity by 200 kt, thereby enhancing aluminium upstream capacity from the current 1300 kt to 1500 kt by FY27.
On Aluminium Downstream front, Aditya FRP expansion project is expected to be commissioned, increasing the company’s total downstream capacity of the company to ~660 kt by FY26. This will enable the company to yield better EBITDA from this capacity expansion.
HIL is setting up an e‑waste and copper scrap recycling plant near Bharuch district in Gujarat, with a total investment of ~$280 million (~₹2,400 crore). This will be the first facility of its kind in India, producing high purity precious metals and refined copper by refining e‑waste.
HIL also plans on expanding its copper smelter capacity by 300 kt, with an estimated capex to be ~$950 million (~₹8,000 crore).             

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