Hindalco Plans $5 Billion Expansion -Targets 4x Growth in Recycling by FY30

Hindalco Industries on Wednesday announced an aggressive expansion plan, investing over $5 billion to ramp up aluminium and copper capacity as well as to drive growth in sustainability and recycling. Aiming to increase its recycling capacity four-fold by FY30, the company envisages aluminium as a circular product with 75% recycled content.

At its 2025 Investor Day, Hindalco committed to lowering its CO2 emissions to less than 3 tonnes per tonne of shipped flat-rolled products (FRP). The expansion plan will allocate 8-10% of free cash flow to shareholder returns, underscoring a commitment to the balance between capital investments and returns for shareholders.

Novelis Makes Aluminium Grow Globally

Hindalco’s Novelis drives its global aluminium strategy, having remained a key contributor to the company’s US-based subsidiary. For the year ending December 31, 2024, the world’s largest aluminium roller and recycler reported net sales of $16.6 billion and an adjusted EBITDA of $1.8 billion. The company is looking for over $600 of EBITDA.

To deal with changing scrap market conditions, Novelis is making growing investments, especially in its Bay Minette project, due to finish in the latter half of 2026. As the North American aluminium supply is tight, Novelis is building on its growth pipeline with $5 billion worth of continuing projects.

Capacities in India Leverages Surge in Domestic Demand

Hindalco in India is also bracing itself to ride on demand for aluminium and copper which is expected to double by FY35. Industries served by the company account for 60% of India’s industrial GDP, and there is further growth potential in battery enclosures, aerospace and foil production.

Expansion of a 300KT copper smelter is underway, and Hindalco’s continued utilisation of captive coal mines and renewable energy ensures cost efficiency is maintained. Sustainability continues to be central to the company’s vision, with 2050 goals of water positivity and net-zero emissions on the horizon.

The company is doing so by incorporating AI-driven analytics and AR/VR applications to improve operational efficiency.

Hindalco’s shares closed at ₹664.30 on the BSE on April 1, a fall of 2.65%.