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Hindalco Industries plans to invest Rs. 15,000 crore in Madhya Pradesh
Equities, Markets - February 25, 2025

Hindalco Industries plans to invest Rs. 15000 crore in Madhya Pradesh

Hindalco Industries plans to invest Rs. 15000 crore in Madhya Pradesh

 

 

In the Madhya Pradesh Global Investors Summit 2025, Hindalco Industries announced investment of Rs.15,000 crore in Madhya Pradesh in order to strengthen its aluminum smelting capacity over the period of upcoming two years.

 

About Hindalco Industries

In 1958, Hindalco Industries Ltd. was established. The company is a flagship firm of the Aditya Birla Group and involves in the business of production of copper and aluminium. It is also a manufacturer of extrusion, aluminium sheet, and light gauge products used for the purpose of can, foil products, beverage and food, etc. in the packaging market. 

 

Investment plans of Hindalco Industries

The company plans to inject funds of around Rs.15,000 crore in Madhya Pradesh for the upcoming two years. These funds will be from Hindalco Industries only. Additionally, it plans to create a large mine named as Banda through Aditya Birla Group, parent company of Hindalco Industries Ltd. 

 

Hindalco’s investment in Madhya Pradesh is not for the first time. In the past, the company has made investments to create a large footprint in the state. It has already made an investment funding of Rs.25,000 crore in the past. It led to the establishment of its world-class aluminium smelter in the region of Mahan, Singrauli district. 

 

The company’s present plan of Rs.15,000 crore of investment’s goal is to expand the company’s presence and also to push the local economy of Madhya Pradesh higher. 

 

Impact of international trade policies

Managing Director of Hindalco Industries, Satish Pai states that the impact of US tariffs will remain in the range of neutral to positive. The reason for this is Novelis, a big American subsidiary of Hindalco Industries operating in the USA. In this current situation, Novelis is set to get some benefits of operating in the USA. Further, Hindalco Industries in India exports only a small amount of aluminium to the USA. 

 

Aditya Birla Group’s investment plans in Madhya Pradesh

Apart from Hindalco Industries’ investment plan, other major subsidiaries of Aditya Birla Group also plan to invest in various projects in Madhya Pradesh. UltraTech Cement is a flagship company of Aditya Birla Group in the cement sector. Aditya Birla Group’s Grasim’s Viscose Staple Fibre (VSF) is a major global producer of Viscose Staple Fibre (VSF). Both these companies are planning to invest in Madhya Pradesh to start their independent projects.

 

Overall, it highlights the commitment of Aditya Birla Group towards the industrial growth of Madhya Pradesh. 

 

Outlook of GIS-2025 in Madhya Pradesh

The government of Madhya Pradesh has appreciated the investment plans of Hindalco Industries. It will help the state to enhance its position as a crucial hub for aluminium manufacturing and also for industrial development. This investment plan is anticipated to bring large job opportunities in the state. It will also lead to economic growth of the state. 

 

The Global Investors Summit is anticipated to strengthen economic growth in the state by attracting important investments  and also creating partnerships with global entities. The summit included major industrialists, international trade organizations, and diplomatic representatives. The main aim of the GIS-2025 is to make Madhya Pradesh, a key investment hub in India. 

 

 

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Jindal Steel & Power Q1 FY26: Profits Surge on Operational Gains and Strategic Growth
Business, Equities, Market News, Markets, Research, Result Updates - August 11, 2022

Hindalco Industries Limited Q1 FY23 Result Updates. Stronger Q1 backed by operational efficiencies.

Hindalco Industries Limited Q1 FY23 Result Updates.
Stronger Q1 backed by operational efficiencies.

Hindalco Industries Limited reported a net profit of Rs. 4,119 crores, up by 48% YoY as compared to Rs. 2,787 crores in June 2021, driven by strong US sales and higher revenue that cushioned the impact of pricier raw materials. On a sequential basis, the profit has increased 7% QoQ from Rs 3,851 crores during the March quarter.
Revenue for the quarter increased to Rs. 58,018 crores, up by 40.28% YoY from Rs. 41,358 crores in the same quarter last year. On a sequential basis, the revenue scaled 4% from Rs 55,764 crore recorded in the previous quarter.
Earnings before interest, tax, depreciation, and amortization stood at Rs. 8640 crores as against RS. 6790 crores in Q1 FY22, increased by 27% YoY.

Excellent results driven by robust performance by Novelis, Aluminium Downstream, and Copper businesses, supported by operational efficiencies and higher volumes.

Novelis reported its best-ever quarterly EBITDA and EBITDA per tonne primarily due to higher product pricing, favourable product mix, and recycling benefits.
Novelis’ profit for the quarter stood at $307 million, up 1% YoY.
Revenue was at $5.1 billion against $3.9 billion YoY, up 32%, driven by higher global aluminium prices. Total shipments of flat rolled products (FRPs) were at 962 Kt against 973 Kt in the year-ago quarter, marginally lower due to supply chain constraints.

Aluminium upstream revenues stood at Rs 8,699 crore. Ebitda stood at Rs 3,272 crore, up 41% YoY, primarily due to favourable macros, higher volumes, and better operational efficiencies, partially offset by higher input costs. Upstream Ebitda margins were at 38%.
Aluminium downstream logged revenues of Rs 2,740 crore.
Ebitda stood at Rs 158 crore, up 305% YoY, primarily due to better pricing of downstream products. Ebitda per ton for Aluminium downstream stood at $261 against $64 YoY, up 306% YoY.

The copper business witnessed an improvement of 48% YoY to Rs 10,529 crores due to higher volumes and a rise in global prices. EBITDA at Rs.565 crore, up 116% YoY, on the back of higher volumes, better operational efficiencies, and improved by-product realizations.
The shares of Hindalco Industries Limited are trading at Rs. 438.05, down by 0.50%.

Valuations:

The return on equity (ROE) is 18.5% for June 2022. The price-to-earning (P/E) ratio stood at 6.54. The return on capital employed (ROCE) for the company is 16.2%. The price to book value of Hindalco Industries Limited is 1.24. The EV/EBITDA is 4.59. EPS for the quarter is Rs. 67.

 

 

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