Hindalco Industries, the Aditya Birla Group metals flagship, announced plans to set up 34,000-tonne extrusion plant at Silvassa in the Union Territory of Dadra and Nagar Haveli.
The new plant will service the fast-growing market for extruded aluminium products in the western and southern regions.
The project will be set up at an investment of Rs 730 crore. The project signals a big step forward in Hindalco Industries’ downstream strategy as the company revives its long-term downstream investment plan.
The company intends to build a larger value-added product portfolio over the next few years. The state-of-the-art Silvassa plant will be the first-of-its-kind in India.
The Silvassa facility will enable the company to service its customers faster, with an offering of high-end quality aluminium products.
The fully automated plant includes three extrusion presses and will enable the company to service premium customers in the building & construction, auto & transport, electrical, consumer and industrial goods sectors.
The aluminium extrusion market in India is expected to grow from the current level of around 3,73,000 tonne to reach around 8,50,000 tonne by 2030.
As part of the downstream strategy, the company intends to enhance its capacity from over 3,00,000 tonne currently, to over 6,00,000 tonne with investments of around Rs 7,000 crore over the next few years.
The company’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 34,000-tonne capacity with a focus on the B&C segment which comprises over 60 per cent of the extrusion market, apart from auto, transport and other segments. The commercial production at the plant is expected to commence in 24 months.