Hindalco Industries-owned Novelis expects to achieve cumulative cost savings of $300 million from 2027-28 onwards through operational and footprint efficiencies, as well as selling, general and administrative (SG&A) initiatives. Two-thirds of the savings will come from operational efficiencies, with the remaining one-third from SG&A initiatives. Novelis also expects its adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) to rise to over $600 per tonne in the long term, up from $406 per tonne in the December quarter.

The company plans to achieve these savings through strategies such as increasing labor productivity, optimizing energy and variable costs, reducing procurement costs, and enhancing the effectiveness of its assets. Novelis will also focus on optimizing its footprint by fully utilizing its automotive finishing line in China and closing two specialty finishing plants in North America.

In addition, Novelis has committed to keeping its net leverage ratio at or around 3.5x during its strategic capital investment cycle. The company’s net debt to EBITDA ratio stood at 2.9x at the end of the December quarter. Novelis is also investing $4.1 billion in its Bay Minette project in the US, which is expected to be commissioned in the second half of 2026.

The company expects demand for flat rolled products to grow at a compound annual rate of 4% between 2024 and 2029, driven by robust growth in end markets such as beverage packaging, automotive, specialty, and aerospace. Novelis’s rolled product shipments were around 2.8 million tonnes between April and December 2024, and the company expects its global flat rolled products capacity to reach around 5 million tonnes with the addition of 600 kilotnes from Bay Minette and 175,000 tonnes from debottlenecking.

Hindalco Industries has outlined its plans for long-term growth, with a focus on sustainability, recycling, and capital investments to strengthen its position in the market. The company aims to increase recycling capacity fourfold by FY30, with a target to cut CO2 emissions to less than 3 tonnes per tonne of flat-rolled products delivered. To achieve this, Hindalco has pledged to invest $5.19 billion to expand its aluminium and copper production capacity.

The company’s subsidiary, Novelis, reported net sales of $16.6 billion in 2024 and adjusted EBITDA of $1.8 billion, with a goal to achieve EBITDA of over $600 per tonne. Novelis is adapting to changing dynamics in the scrap markets and investing to grow its global aluminium production capacity.

In the near term, Hindalco’s Bay Minette project (North America) is expected to have a positive impact on regional aluminium supply constraints. The company is also investing $5 billion in multiple expansion projects, including a $300KT copper smelter expansion project to support increasing domestic demand.

Hindalco is well-positioned to capitalize on India’s growing demand for aluminium and copper, with plans to double its consumption by FY35. The company serves industries that account for 60% of India’s industrial GDP and is focusing on areas of growth, such as battery enclosures, aerospace, and foil production.

In addition to its environmental goals, Hindalco aims to become water positive by 2050 and achieve net zero emissions. The company is also incorporating advanced digital initiatives, including AI-driven analytics and AR/VR applications, to enhance efficiency and innovation. By doing so, Hindalco is poised to drive growth while promoting sustainability and reducing its environmental footprint.

Hindalco Industries, a leading Indian aluminum company, recently hosted its Investor Day 2025, which provided insights into its strategic plans, growth initiatives, and financial targets for the next five years. The event was attended by investors, analysts, and media, and here are the key takeaways:

Growth Strategy:

• Hindalco plans to grow its Bauxite-to-Alumina productivity by 15% to 20% per annum for the next five years.
• The company aims to increase its smelter capacity by 20% in the same period to meet rising demand.
• Hindalco will expand its value-added products portfolio, including aerospace, automotive, and specialized alloys.

Financial Targets:

• The company plans to increase its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin to 18% by 2025, up from 14.5% in FY2022.
• Hindalco aims to reduce its net debt to EBITDA ratio to 1.5 times by 2025, down from 2.3 times in FY2022.
• The company expects to generate free cash flow of ₹15,000 crores (approximately $2.1 billion) per annum by 2025, up from ₹5,000 crores (approximately $690 million) in FY2022.

Cost Savings and Optimizations:

• Hindalco plans to achieve ₹5,000 crores (approximately $690 million) in cost savings through operational efficiencies and productivity improvements.
• The company aims to reduce its power costs by 15% through a mix of on-site generation and purchases.
• Hindalco will also reduce its employee count by 1,000, or approximately 10%, through natural attrition and restructuring.

Capital Allocation:

• Hindalco will prioritize investments in growth initiatives, including expansion of its smelter capacity, and in strategic acquisitions.
• The company will maintain a dividend payout ratio of 30-40% of its AT Kearney (After-Tax profit).

Valuation:

• Based on its Investor Day presentation, Hindalco’s valuation is expected to increase, reflecting its growth prospects and improved financial performance.
• The company’s target EV/EBITDA multiple is around 10-12 times, higher than its current multiple of 7.5 times.

Overall, Hindalco’s Investor Day 2025 presentation provides a clear roadmap for the company’s growth, financial performance, and cost savings initiatives. The company’s strategic plans are expected to lead to increased investor confidence and a higher valuation multiple.

Hindalco Industries, a flagship company of the Aditya Birla Group, has signed an agreement with the Madhya Pradesh government to invest Rs 15,000 crore over the next two years. This announcement was made at the Madhya Pradesh Global Investors Summit (GIS) 2025 in Bhopal. The investment is expected to further enhance Hindalco’s presence in the state and boost the local economy.

Hindalco’s Managing Director, Satish Pai, highlighted that the company will not only invest Rs 15,000 crore but also open a large mine called Banda. The company already has an existing investment of Rs 25,000 crore in the state, primarily focused on its world-class aluminium smelter in Mahan.

The company’s operations are affected by global trade policies, particularly in the United States, where its subsidiary Novelis is based. However, Pai stated that the tariffs have a neutral to positive impact on Hindalco’s operations, as it doesn’t export aluminium to the US.

The Aditya Birla Group’s other entities, including UltraTech Cement and Grasim’s Viscose Staple Fibre (VSF) division, are also working on independent projects in Madhya Pradesh, demonstrating the group’s commitment to the state’s industrial growth.

The Madhya Pradesh government has welcomed Hindalco’s investment, considering it a significant step in strengthening the state’s position as a key hub for aluminium production and industrial development. The investment is expected to create substantial employment opportunities and drive economic growth in the region. The GIS-2025 summit aims to boost economic growth in Madhya Pradesh by facilitating key investments and partnerships with global players, solidifying the state’s position as a major investment hub in India.

NALCO, a leading mining and metals company in India, has increased the price of its primary aluminium ingots (P1020, 99.7%) by INR 6,700 per ton ($76 per ton) on February 7, 2025. The current price stands at INR 271,600 per ton ($3,141 per ton), up from INR 264,900 per ton ($3,029 per ton) on January 24, 2025. Prices are ex-works and do not include GST.

Other Indian primary producers have also increased the price of their aluminium ingot (P1020, 99.7%) by up to INR 3,750 per ton ($42 per ton) compared to January 6, 2025. Hindalco’s prices rose to INR 274,750 per ton ($3,142 per ton), up INR 3,750 per ton ($42 per ton), while Balco’s prices climbed to INR 275,250 per ton ($3,148 per ton), also up INR 3,750 per ton ($42 per ton). All prices are ex-works and do not include GST.

The revised prices are compared to the prices of aluminium futures on the London Metal Exchange (LME), which stood at $2,643 per ton at the time of reporting. The price revision is a reflection of the fluctuations in the global aluminium market.

Rohit Pathak, the CEO of Copper Business at Hindalco Industries, has been appointed to the Board of Directors at the International Copper Association (ICA). This recognition acknowledges his extensive experience and significant contributions to the global copper industry. In his new role, Rohit will help shape international strategies, focusing on sustainability, industry growth, and best practices in copper production.

Under Rohit’s leadership at Hindalco, he has transformed the company’s copper business by optimizing operations, increasing production capacity, and prioritizing sustainability. His initiatives have strengthened Hindalco’s position in the industry while driving environmental stewardship.

Beyond his work at Hindalco, Rohit has played a key role in multiple industry associations. He has served as President of the Indian Electrical & Electronics Manufacturers’ Association (IEEMA) and the Indian Primary Copper Producers Association. At IEEMA, he has championed policy advocacy, innovation, and sustainable business practices to support India’s electrical and electronics manufacturing sector.

Rohit’s appointment to the ICA Board reinforces his reputation as a thought leader in the industry. His expertise in the copper supply chain, from mining to refining, positions him to tackle key challenges, including market dynamics and environmental sustainability. As a Board member, he will actively contribute to shaping the future of the global copper sector, driving innovation, and sustainability efforts to ensure continued growth and development for the industry worldwide.

Hindalco Industries, a leading metals company and part of the Aditya Birla Group, has signed a Coal Mine Development and Production Agreement (CMDPA) to develop the Meenakshi coal mine in Odisha. The mine, which has a peak rated capacity of 12 million tonnes per annum and 285.23 million tonnes of geological reserves, is expected to commence coal production in CY2028, subject to regulatory clearances and approvals.

The Meenakshi coal mine is considered a cost-effective and sustainable energy source due to its favourable coal-to-waste stripping ratio of less than 1. This will enable Hindalco to become self-reliant in coal production, reducing its dependence on external sources. The company’s goal is to produce coal that meets its own energy needs, while also generating surplus coal for sale.

Hindalco Industries is a diversified metals company with operations in aluminum, copper, and other metals. It is the world’s largest aluminum rolling and recycling company, and one of Asia’s largest producers of primary aluminum. The company’s consolidated net profit surged 78.01% to Rs 3,909 crore in the second quarter of FY25, driven by a 7.45% increase in revenue from operations to Rs 58,203 crore.

The company’s stock price, however, shed 0.35% to trade at Rs 600.10 on the BSE. Despite this, the development of the Meenakshi coal mine is expected to have a positive impact on Hindalco’s financial performance and sustainability, making it a significant milestone in the company’s growth strategy.

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According to a report by The Economic Times, Hindalco Industries is one of the 10 large-cap stocks that analysts expect to soar by 67%. The report highlights that these stocks have been consistently outperforming the broader market and are expected to continue their upward trajectory. Hindalco Industries, a leading copper and aluminum producer, is one of the top picks among analysts. The company has been benefitting from the growing demand for copper and aluminum in the electronics and automotive sectors. Additionally, Hindalco’s cost reduction initiatives and efforts to increase productivity have also contributed to its strong performance. Other large-cap stocks that made the list include Bajaj Finance, ICICI Bank, and State Bank of India. These stocks have been consistently delivering strong earnings growth and are expected to continue their upward momentum in the coming years.

The article discusses the performance of three Indian companies – TCS, Hindalco, and Shipping Corporation – and provides investment advice to investors. TCS, the country’s largest IT services company, has been a big mover on the stock market, with its shares rising 5% in the past week. The company’s strong quarterly earnings and robust demand for its services have driven the stock higher. Investors are advised to hold onto TCS shares, as the company’s fundamentals remain strong.

Hindalco, a leading metals and mining company, has seen its shares decline 10% in the past week due to concerns over its debt levels and slowing demand for aluminum. However, investors are advised to wait for a pullback in the stock price before buying, as Hindalco’s debt levels are a concern.

Shipping Corporation, a state-owned shipping company, has seen its shares decline 15% in the past week due to concerns over its debt levels and slowing demand for shipping services. Investors are advised to avoid the stock, as the company’s debt levels are a major concern and its fundamentals are weak.

The Government of India has issued an allocation order to Hindalco Industries, a company of the Aditya Birla Group, for the Meenakshi coal mine in Odisha. The Meenakshi coal mine has a capacity of 12 million tonnes per annum (MTPA). The Ministry of Coal issued the vesting order for the mine, marking a significant development in India’s energy security. The mine is expected to contribute to the country’s energy requirements and help meet the growing demand for coal. Hindalco Industries will now be responsible for the exploration, extraction, and production of coal from the Meenakshi mine. The allocation is seen as a boost to the company’s energy business and a significant step towards enhancing India’s energy security.

Hindalco Industries Limited has received an order from the Office of the Commissioner of Central Goods and Services Tax in Rourkela, Odisha, demanding a total of ₹52,66,58,508 in taxes and penalties. The demand is related to the company’s payment of water charges to the State Government and the Department has raised a reverse charge on Goods and Services Tax (GST). The company received the order on December 24, 2024, but has not yet received a physical copy of the order. Hindalco plans to appeal against the demand, citing strong cases on merit and law. The company made the disclosure under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Hindalco Industries’ subsidiary, Novelis, has made its initial public offering (IPO) filing public in the United States. The company plans to raise up to $500 million through the IPO, which is expected to take place in the second half of 2023. Novelis is a leading producer of rolled aluminum products and has operations in North America, Europe, Asia, and South America. The company is expected to use the funds raised from the IPO to repay debt and invest in growth initiatives.

The IPO filing reveals that Novelis reported revenue of $11.4 billion and net income of $1.2 billion in 2020. The company has a strong track record of financial performance, with revenue and net income growing by 12% and 22%, respectively, over the past three years. Novelis is expected to list its shares on the New York Stock Exchange (NYSE) under the ticker symbol “NVLS”. The IPO is expected to be a significant milestone for Hindalco, which acquired Novelis in 2007 for $6 billion.

Hindalco Industries Limited, a part of Aditya Birla Group, has launched a Digital Classroom Initiative, “Project Anveesha”, in 7 high schools near its Hirakud plant in Sambalpur district. The project aims to modernize the learning environment by equipping students with state-of-the-art technology. Sandip Roy, Head of Hirakud FRP plant, stated that the initiative will foster digital literacy and improve access to quality education, contributing to the learning process. The digital classrooms will feature smart boards, e-learning platforms, AI interfaces, and IoT-based systems, offering a comprehensive and interactive learning experience. The platform will also offer multi-language content in Odia, Hindi, and English, catering to a diverse student body. The initiative is part of the group’s Corporate Social Responsibility (CSR) efforts, aiming to drive technological advancements in education and empower the next generation of learners. The project is expected to reshape the educational landscape, enabling students to gain digital literacy and enhance their overall academic experience.

Source: https://odishabarta.com/hindalco-industries-launches-digital-classroom-initiative-project-anveesha-at-hirakud/