Hindalco to Invest USD 4.4 Billion in Capex Over Next Five Years, Focus on Downstream Business
Hindalco (HNDL) plans to invest USD 4.4 billion in capex over the next five years for projects including FRP capacity expansion in the USA, upstream expansion at Utkal, special alumina business capacities, and downstream aluminum capacities. Over USD 3 billion of capex is allocated to the USA region. About 80% of the organic growth capex in India (USD 1.1 billion) will be allocated to the downstream business. HNDL expects Novelis’ EBITDA/t to touch USD 525 by 4QFY24.
Despite near-term headwinds due to a slowdown in China and its impact on non-ferrous prices, the long-term outlook remains positive. Hindalco is adding downstream capacities at the right time to capture the robust growth opportunities.
In other words, Hindalco is investing heavily in its downstream business, particularly in the USA, to capitalize on the growing demand for aluminum in sectors such as EVs, e-mobility, packaging, and consumer durables. The company is also confident in its ability to weather the near-term challenges posed by the slowdown in China.
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