Hindalco to invest Rs 6,000 cr to set up downstream facilities
Hindalco Industries, the metals flagship of the Aditya Birla Group, plans to invest about Rs 6,000 crore to set up downstream facilities over the next four years, a top company official said here on Tuesday.
"We are going to put up a downstream facility between Hirakud and Lapanga (in Odisha), which will entail about Rs 5,000 crore of investment and we are probably going for about 300 kt (kilo tonnes) of downstream products," company's Managing Director Satish Pai told reporters here.
He said the investments will also be made at Mundra in Gujarat for its upcoming extrusion plant.
"We will be investing Rs 6,000 crore in the downstream sector in the next four years," he said on the sidelines of the 'Make in Odisha' conclave.
The expansion and setting up of units for downstream products takes time and will be done in a phased manner.
He said the aluminium major would make a capital expenditure of Rs 1,600 crore this fiscal year ending March, of which Rs 700-800 crore will go towards maintenance of its facilities.
The remainder will be spent on brownfield expansion of Utkal Alumina and downstrem expansion.
Pai said the company would also look at coal mine auctions that are scheduled at November-end, as coal availability remains a concern.
"There is no quick-fix for coal shortages. We are not importing (coal) yet. We have started putting some volumes, about 0.5 million tonnes, for import at this stage. The company is waiting for coal mine auctions that are going to happen by the end of November," he said, adding that the company operates three coal mines - two in Chhattisgarh and one in Jharkhand.
"We can ramp up our coal production to meet our energy needs. The Dumri mine would be available by the middle of next year," he said.
Pai said that the acquisition of US-based aluminium sheet-maker Aleris Corp is expected to be completed by April-May next year.-IANS