Representational image
Representational image
Photo by Golnar sabzpoush rashidi from Pexels

Aditya Birla-led Hindalco Industries on Monday announced plans to set up a 34,000-tonne extrusion plant at Silvassa in the union territory Dadra and Nagar Haveli.

The Rs 730 crore plant will service the fast-growing market for extruded aluminium products in the western and southern regions.

Hindalco said the project in Silvassa signals a big step forward in its 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.

"We are seeing a revival in the economy, with demand picking in the building and construction and automotive sectors," said Managing Director Satish Pai.

"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," he said.

The fully automated plant includes three extrusion presses and will enable Hindalco to service premium customers in the building and construction, auto and transport, electrical, consumer and industrial goods sectors.

The aluminium extrusion market in India is expected to grow from the current level of around 3.73 lakh tonnes to reach about 8.5 lakh tonnes by 2030. The western and southern regions of the domestic market account for over 60 per cent of the extrusion market.

"Over the next few years, as part of our downstream strategy, we intend to enhance our capacity from over 3 lakh tonnes currently to more than 6 lakh tonnes with investments of Rs 7,000 crore," said Pai.

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 building and construction segment which comprises over 60 per cent of the extrusion market apart from auto, transport and other segments.

Commercial production at the plant is expected to start in two years.

Hindalco is the world's largest aluminium rolling and recycling company, and a major player in copper. Its global footprint spans 47 manufacturing units across 10 countries.

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