Hindalco unveils $5.19B investment plan, aims for quadrupled recycling capacity and lower emissions
Mumbai: Hindalco Industries has outlined a comprehensive growth plan centred on sustainability, recycling, and capital investment, media reports said.
At its Investor Day 2025, the company announced an ambitious goal to quadruple its recycling capacity by FY30, positioning aluminium as a circular material with 75% recycled content, CNBC TV18 reported.
Hindalco is also focused on reducing emissions, aiming to lower CO₂ emissions to under 3 tonnes per tonne of flat rolled products (FRP) shipped.
To support this strategy, the company has earmarked $5.19 billion for investments in aluminium and copper capacity expansion, strengthening its footprint in the domestic market.
On the capital allocation front, Hindalco plans to maintain a balance between growth investments and shareholder returns, committing 8-10% of free cash flow to dividends.
Novelis leads global expansion
Novelis, Hindalco’s US-based subsidiary and the world’s largest aluminium roller and recycler, reported $16.6 billion in net sales for the 12 months ending December 31, 2024, with an adjusted EBITDA of $1.8 billion. The company is aiming for an EBITDA exceeding $600 per tonne.
Domestic demand
In India, Hindalco is positioning itself to capitalise on growing aluminium and copper consumption, which is projected to double by FY35.
The company serves industries that contribute 60% of India’s industrial GDP and sees expansion potential in sectors like battery enclosures, aerospace, and foil production.
To maintain cost efficiency, Hindalco is leveraging captive coal mines and renewable energy while expanding its portfolio of value-added products. A 300KT copper smelter expansion is already underway.
Sustainability and digitalisation at the core
Hindalco remains committed to long-term sustainability, setting goals such as water positivity by 2050 and achieving net-zero emissions. It is also integrating AI-driven analytics and AR/VR applications to enhance operations.
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