According to the Managing Director of Hindalco Industries, Satish Pai, the company plans to inject between INR 4,000 and INR 5,000 crore annually. As much as possible, the aluminium producer is trying to complete the projects with cash generated from the company's operations. In addition to the recently announced Rs 8,000 crore investment in a new alumina refinery and a 150-MW captive power plant, Hindalco is strategizing a significant capital expenditure initiative. This upcoming venture involves establishing a large extrusion facility in India that manufactures aluminium trains.
Satish Pai said, “We see that the Indian railway, whether the rake and bulk volume side or the passenger bogies, both are huge markets for us. So, we are playing on both sides, and we are watching closely the 100 aluminium train orders that have just been announced by the railways, and we are planning a large capex project to put up a big extrusion plan to make those boogie bodies in India.”
The company is gearing up for strategic investments to capitalise on the demand for trains running at 150 km per hour, emphasising the necessity of an aluminium body. This practice is universally adopted, presenting a substantial market opportunity for Hindalco.
The firm intends to finance the project independently, estimating the cost of the extrusion press to be around INR 2,000–2,500 crore. Pai revealed that the company is actively scouting for suitable land to establish the press. He expressed confidence in the company's ability to fund the project through internal accruals, relying on the robust cash flow it generates to handle the undertaking seamlessly.
Pai added, “In India, both the aluminium and copper demand are extremely strong; aluminium is growing at 10 per cent, and copper is growing at 7 per cent, and it is largely driven by electrification, building and construction, and automobiles."
