Key Highlights

• Rs 21000 crore expansion at Aditya Aluminium complex in Sambalpur Odisha

• 3.6 lakh tonnes per annum addition in primary aluminium smelting capacity

• Rs 4500 crore investment in downstream facilities

• 1.7 lakh tonnes per annum flat rolled products capacity to cut import dependence

• India’s first battery grade aluminium foil plant to support 100 GWh lithium ion cell capacity

• Over 15000 new jobs expected in the region

• Part of Hindalco’s larger Rs 55000 crore India capex program

Hindalco Announces Rs 21000 Crore Aluminium Expansion in Odisha with Focus on Value Added Products

On January 27, 2026, Hindalco Industries announced a major Rs 21000 crore expansion of its aluminium operations in Odisha. This is not just a routine capacity addition. Instead, it shows how India’s largest aluminium producer is preparing for the next phase of industrial and manufacturing growth in the country.

The announcement was made at an event inaugurated by Odisha Chief Minister Mohan Charan Majhi. The project will expand the Aditya Aluminium complex in Sambalpur by adding 3.6 lakh tonnes per annum of primary aluminium smelting capacity. At the same time, Hindalco will commission important downstream facilities worth Rs 4500 crore.

This combination of upstream and downstream investment clearly shows that Hindalco wants to move beyond being only a commodity aluminium producer and strengthen its presence across the full value chain.

Why Odisha Remains Central to Hindalco’s Strategy

Aluminium smelting requires large capital, reliable power supply, and strong raw material access. Such large expansions are only done when a company has long term confidence in demand, costs, and infrastructure.

Odisha has become the backbone of India’s aluminium sector due to:

• Rich bauxite reserves

• Integrated infrastructure

• Supportive state policies

By choosing to expand further in Odisha, Hindalco is reinforcing the state’s role as a strategic metals hub and not just a raw material supplier.

Shift from Commodity Aluminium to Value Added Products

The most important part of this announcement is not just the smelter expansion but the focus on downstream products.

Flat Rolled Products to Reduce Imports

Hindalco will add 1.7 lakh tonnes per annum of flat rolled products capacity. India currently depends on imports for nearly 40 percent of its flat rolled aluminium needs.

By adding this capacity, Hindalco aims to cut this import dependence by half. Flat rolled aluminium is widely used in:

• Automotive manufacturing

• Packaging industry

• Aerospace

• Industrial equipment

This move directly supports India’s advanced manufacturing goals.

India’s First Battery Grade Aluminium Foil Plant

Hindalco will also set up India’s first battery grade aluminium foil facility. This plant is designed to support up to 100 GWh of lithium ion cell manufacturing.

Battery grade foil is a high precision product and is critical for:

• Electric vehicles

• Energy storage systems

• Battery pack manufacturing

Global supply of this material is limited to a few countries. By entering this segment, Hindalco reduces India’s dependence on imports and becomes an important part of the EV supply chain.

Building a Fully Integrated Aluminium Ecosystem

This expansion connects the entire aluminium value chain:Bauxite mining → Alumina refining → Primary aluminium → Flat rolled products → Battery foil

Such integration helps Hindalco:

• Reduce risk from volatile aluminium prices

• Earn better margins from value added products

• Align with long term trends like EV adoption, renewable energy, and lightweight materials

This is why the Rs 21000 crore investment should be seen as a strategic move and not just a cyclical bet on metal prices.

Employment and Sustainability Impact

The project is expected to create more than 15000 additional jobs, both direct and indirect. Hindalco already employs around 23000 people in Odisha.

The company also plans to meet part of the expanded smelter’s power needs through round the clock renewable energy. This is important because aluminium production is energy intensive and often criticised for high carbon emissions.

Using renewable power will improve cost competitiveness and address environmental concerns.

Part of a Much Larger Investment Plan

This Odisha expansion is part of:

• Rs 37000 crore investment plan for Odisha

• Rs 55000 crore total growth capex planned by Hindalco across India

This shows strong confidence in India’s long term manufacturing and consumption growth, especially in sectors supported by policy, localisation, and clean energy trends.

Market Reaction

On January 27, 2026, Hindalco’s share price rose 1.44 percent to close at Rs 964 on the NSE. The reaction was positive but measured.

This suggests that investors are looking at:

• Execution timelines

• Cost control

• Long term returns

rather than reacting only to the headline investment number.

Final Word

Hindalco’s Odisha expansion is a clear example of how Indian metal companies are moving from scale to sophistication. By combining smelting capacity with flat rolled products and battery grade foil, the company is aligning itself with import substitution, EV growth, and advanced manufacturing.

While the financial benefits will take time to reflect, the strategic intent is clear. This investment strengthens both Hindalco’s future position and India’s journey towards becoming a value driven manufacturing economy.