Aditya Birla Group-owned Hindalco Industries Ltd has firmed up plans to expand the capacity of its downstream mill at Hirakud in western Odisha. The facility makes flat-rolled products (FRP) and will see an investment of Rs 4,000 crore for ramping up capacity from 1,35,000 tonnes per annum now to 3,75,000 tonnes.
"We are looking for 100 acres of contiguous land to complete the expansion. Most of the products manufactured at the Hirakud FRP are exported. We are witnessing a very good demand for such products and this is driving our expansion", said R K Gupta, head (Sambalpur cluster), Hindalco Industries.
Group company Aditya Aluminium owns an aluminum smelter of 0.36 million tonnes per annum capacity supported by 900 Mw CPP at Lapanga in Sambalpur district. It also has an FRP facility for rolled products, extrusion products and wire rods.
Hindalco is in talks with Apar Industries for setting up a wire rod conductor making facility close to its smelting unit.
"We are not going to offer any land to Apar Industries but we have assured them molten aluminum supplies. Hindalco, as of now, is not facilitating any aluminum downstream park", Gupta said.
A technology driven and customer focused company; Apar Industries offers value added products and services in power transmission conductors, petroleum specialties, power and telecom cables.
Hindalco's Aditya smelter is fed by alumina primarily sourced from Utkal Alumina Ltd, a 100 per cent subsidiary of Hindalco Industries Ltd.
Hindalco is also aiming to raise capacity of its alumina refining unit at Rayagada in south Odisha.
"We intend to double capacity of the Utkal refinery from 1.5 million tonnes per annum (mtpa) to three mtpa. Initially, the capacity would be raised to two mtpa. Our investment in the first phase could be Rs 1,000 crore", he added.
The Utkal refinery is fed by the company's captive Baphlimali bauxite mines with enough reserves to cater to the refinery's requirement for 25 years after its ramp-up. The mine contains very low amount of silica which provides a cushion against rising caustic soda prices.