Hindalco Announces Major Aluminium Expansion in Odisha Worth ₹21,000 Crore

Hindalco Industries Limited has announced a substantial expansion of its aluminium operations in Odisha, including a ₹21,000-crore smelter expansion and the commissioning of new manufacturing facilities. The announcement was made on January 27, 2026, in Mumbai and Odisha.

Expansion Details and Investment

The metals flagship company of the Aditya Birla Group has revealed plans for a 3.6 lakh-tonne-per-annum smelter expansion at its Aditya Aluminium complex in Sambalpur. Additionally, the company has commissioned a 1.7 lakh-tonne-per-annum Flat Rolled Products facility and a battery-grade aluminium foil manufacturing unit. The FRP and battery foil facility represents an investment of ₹4,500 crore.

These projects are part of Hindalco's broader growth capital expenditure programme, with approximately ₹37,000 crore planned specifically for Odisha operations. The Odisha investments form a significant component of Hindalco's overall growth capex of ₹55,000 crore across India. The projects were inaugurated by the Honourable Chief Minister of Odisha, Shri Mohan Charan Majhi.

The battery-grade aluminium foil facility is India's first of its kind. This facility draws input directly from the FRP complex and represents a significant advancement in domestic manufacturing capabilities. The battery foil facility is designed to support up to 100 GWh of lithium-ion cell manufacturing capacity, positioning India to reduce dependence on imported materials for battery production. These projects represent a major step in indigenising critical raw materials for lithium-ion batteries in India, supporting the electric mobility and energy storage ecosystem.

Hindalco is India's largest flat rolled products player, accounting for over 50 percent of the domestic market. Nearly 40 percent of flat-rolled aluminium is currently imported into India. The new FRP capacity is projected to reduce India's flat-rolled aluminium import dependence by nearly half, supporting domestic manufacturing and improving India's competitiveness in high-grade aluminium products. The smelter expansion marks a step forward in energy transition, with a portion of the facility's power requirement planned to be met through round-the-clock renewable energy.

Leadership Perspectives

Kumar Mangalam Birla, Chairman of the Aditya Birla Group, emphasized that India's manufacturing growth depends on integration, value addition, and sustainability. He highlighted Hindalco's role in building a fully integrated aluminium ecosystem spanning from upstream resources to high-value downstream products. This strategy aims to strengthen India's self-reliance and support critical sectors. Birla acknowledged the long-standing partnership with Odisha, which continues to play an important role in the company's growth journey.

Satish Pai, Managing Director of Hindalco Industries Limited, stated that the FRP expansion and smelter growth at Sambalpur exemplify the company's integrated upstream-downstream growth strategy. This approach enables delivery of high-quality aluminium solutions across packaging, defence, electric mobility, renewable energy, and advanced manufacturing, positioning the company to support India's industrial ambitions while creating long-term value.

Operations and Employment Impact

Hindalco's presence in Odisha spans over 15 years of partnership with the state. The company has already invested more than ₹25,000 crore across bauxite mining, alumina refining, primary aluminium smelting, and downstream manufacturing in Odisha. Hindalco's operations link upstream resources including bauxite, alumina, and primary aluminium with high-value downstream products like FRP and battery foil, creating a fully integrated aluminium ecosystem within the state.

The broader investment pipeline includes the FRP and battery foil manufacturing facilities, primary aluminium smelter expansion, Kansariguda alumina refinery, and Meenakshi coal mine. It also encompasses specialised materials such as white fused alumina and ancillary manufacturing units, consolidating Odisha's status as a national hub for aluminium excellence.

Hindalco's integrated operations currently provide employment to nearly 23,000 people. The next phase of expansion is expected to generate over 15,000 additional direct and indirect jobs, further enhancing the company's role as a major employer in the region.

Sustainability underpins Hindalco's growth strategy. Downstream manufacturing delivers lower carbon intensity per tonne, supported by renewable energy integration, advanced technologies, and responsible resource management. Through corporate social responsibility initiatives in education, healthcare, skill development, and women's empowerment, Hindalco ensures its industrial growth translates into shared, inclusive, and sustainable development across India.

Hindalco Industries Limited is the metals flagship company of the Aditya Birla Group. The company is a 29 billion dollar metals powerhouse and the world's largest aluminium company by revenues. Along with its subsidiary Novelis, Hindalco is the global leader in flat rolled products and the world's largest recycler of aluminium.

Hindalco operates across the entire aluminium value chain, from bauxite mining and alumina refining to coal mining, captive power plants, aluminium smelting, and downstream rolling, extrusions, and foils. The company is also India's largest copper producer, serving more than half the country's copper requirements. Its copper facility in Gujarat comprises a world-class copper smelter and refinery complex, downstream facilities, and a captive jetty.

Hindalco's global footprint spans 48 manufacturing units across 10 countries. The company has been ranked the world's most sustainable aluminium company in the Dow Jones Sustainability Indices for six consecutive years from 2020 to 2025.

The expansion projects are strategically important for India's manufacturing sector, particularly in supporting the electric vehicle ecosystem, defence applications, and advanced manufacturing capabilities. With the country's first battery-grade aluminium foil facility, Hindalco is positioning India to develop a more robust battery manufacturing ecosystem, reducing reliance on imports and supporting the growth of the electric vehicle industry. These expansion projects contribute to national economic goals including Make in India, Atmanirbhar Bharat, and the transition to clean energy.