Hindalco Industries to invest ₹21,000 crore in Odisha smelter expansion

Aluminium producer Hindalco Industries Ltd on Tuesday (January 27) announced a major expansion of its aluminium operations in Odisha, outlining a ₹21,000-crore smelter expansion and commissioning new downstream facilities as part of its ongoing growth capital expenditure programme.

The company flagged a ₹21,000-crore, 3.6 lakh-tonne-per-annum smelter expansion at its Aditya Aluminium complex in Sambalpur. Alongside this, Hindalco commissioned a 1.7 lakh-tonne-per-annum Flat Rolled Products (FRP) and battery-grade aluminium foil manufacturing facility with an investment of ₹4,500 crore. The projects were inaugurated by Odisha Chief Minister Mohan Charan Majhi.

The newly commissioned facilities are aimed at strengthening domestic manufacturing of high-grade aluminium products and indigenising critical raw materials required for lithium-ion batteries. The battery-grade aluminium foil facility, India’s first, draws input directly from the FRP complex and is designed to support up to 100 GWh of lithium-ion cell manufacturing capacity, supporting the electric mobility and energy storage ecosystem.

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These projects form part of Hindalco’s broader growth capital expenditure programme, with around ₹37,000 crore planned for Odisha across upstream and downstream aluminium operations. The Odisha investments constitute a significant portion of the company’s overall growth capex of ₹55,000 crore across India.

Hindalco said the expansion of FRP capacity is expected to materially reduce India’s dependence on imports. The company is India’s largest flat rolled products player, accounting for more than 50% of the domestic market.

With nearly 40% of flat-rolled aluminium currently imported into the country, the expanded FRP capacity is expected to cut import dependence by almost half, supporting domestic manufacturing and enhancing competitiveness in high-grade aluminium products.

The smelter expansion at the Aditya Aluminium complex is also aligned with energy transition objectives. A portion of the power requirement for the expanded capacity is planned to be met through round-the-clock renewable energy, integrating sustainability considerations into large-scale industrial growth.

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Hindalco said the projects are expected to generate over 15,000 additional jobs and support sectors such as electric vehicles, defence and advanced manufacturing.

Hindalco is India’s largest flat rolled products player, accounting for over 50% of the domestic market. With nearly 40% of flat-rolled aluminium currently imported into India, the expanded FRP capacity is expected to reduce import dependence by nearly half, supporting domestic manufacturing and improving India’s competitiveness in high-grade aluminium products.

Kumar Mangalam Birla, Chairman, Aditya Birla Group, said, “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."