The 34,000-tonne plant will come up at an investment of Rs 730 crore.
Hindalco Industries on 7 December 2020 announced that it plans to set up a 34,000-tonne extrusion plant at Silvassa, bordering the state of Gujarat. The new plant will service the fast-growing market for extruded aluminium products in the western and southern regions. "The Rs 730-crore project in Silvassa signals a big step forward in Hindalco's downstream strategy as the company revives its long-term downstream investment plan," it said.The company intents to build a larger value-added product portfolio over the next few years. "This investment indicates confidence in the economic revival, which in turn will grow the demand for downstream value-added products," the aluminium major said.
The fully automated plant includes three extrusion presses and will enable Hindalco to service premium customers in the building & construction, auto & transport, electrical, consumer and industrial goods sectors.
Aluminium is gaining ground as the preferred sustainable metal across these sectors as it is infinitely recyclable and enables industries to integrate circular economy models in their operations. The aluminium extrusion market in India is expected to grow exponentially -from the current level of around 373,000 tonnes to reach about 850,000 tonnes by 2030.
The western and southern regions of the domestic market account for over 60% of the extrusion market. The Silvassa facility will allow Hindalco to serve customers in these regions with superior quality, faster service and shorter response times. The Silvassa facility will add an additional 34,000-tonnecapacity with a focus on the B&C segment which comprises over 60% of the extrusion market, apart from auto, transport and other segments. Commercial production at the plant is expected to start in 24 months.
Hindalco Industries, the metals flagship company of the Aditya Birla Group, is the world's largest aluminium rolling and recycling company, and a major player in copper. Hindalco's global footprint spans 47 manufacturing units across 10 countries.
The company's consolidated net profit tumbled 60.3% to Rs 387 crore on 5.3% rise in revenue from operations to Rs 31,237 crore in Q2 FY21 over Q2 FY20.
The scrip was down 1.19% at Rs 249.55 on Monday amid profit taking. The stock advanced 11.92% in the past four sessions to end at Rs 252.55 on Friday (4 December 2020) from its recent closing low of Rs 225.65 on 27 November 2020.
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