Biznextindia : Hindalco, the Aditya Birla metal flagship company on Monday announced its plan to set up a 34,000-tonne Aluminium extrusion plant at Silvassa, the capital city of union territory Dadra & Nagar Haveli. The new plant will service the fast-growing market for extruded aluminium products in the western and southern regions of the country.
The ₹730-crore project in Silvassa signals a big step forward in Hindalco’s downstream strategy as the Company revives its long-term downstream investment plan. The Company’s intent is to build a larger value-added product portfolio over the next few years. This investment indicates confidence in the economic revival, which in turn will grow the demand for downstream value-added products. Commercial production at the plant is expected to start in 24 months.
Extrusion is the technique used to transform aluminum alloy into objects with a definitive cross-sectional profile for a wide range of uses.
“We are seeing a revival in the economy, with demand picking in the building and construction and automotive sectors. This has given us the confidence to move forward. The Silvassa facility will enable us to service our customers faster, with an offering of high-end quality aluminium products” Mr. Satish Pai, Managing Director, Hindalco Industries, said.
The state-of-the-art Silvassa plant will be the first of its kind in India. The fully automated plant includes three extrusion presses and will enable Hindalco to service premium customers in the building & construction, auto & transport, electrical, consumer and industrial goods sectors. Aluminium is gaining ground as the preferred sustainable metal across these sectors as it is infinitely recyclable and enables industries to integrate circular economy models in their operations.
The aluminium extrusion market in India is expected to grow exponentially – from the current level of around 373,000 tonnes to reach about 850,000 tonnes by 2030. The western and southern regions of the domestic market account for over 60% of the extrusion market. The Silvassa facility will allow Hindalco to serve customers in these regions with superior quality, faster service and shorter response times.
Mr. Pai said, “Over the next few years, as part of our downstream strategy, we intend to enhance our capacity from over 300,000 tonnes currently, to more than 600,000 tonnes with investments of around ₹7,000 crore. Our focus on downstream assets is part of our Sustainable Business Model with an emphasis on further de-risking our business from LME volatility.”
Hindalco’s existing extrusion plants in Renukoot in Uttar Pradesh and Alupuram in Kerala cater mainly to the auto, defence, aerospace and industrial segments. The Silvassa facility will add an additional 34,000-tonne capacity with a focus on the B&C segment which comprises over 60% of the extrusion market, apart from auto, transport and other segments.