Hindalco Industries, an Aditya Birla Group company, has earmarked capex of $2.5-3 billion (about ₹18,500-22,000 crore) on a consolidated basis over the next five years.

Kumar Mangalam Birla, Chairman, Hindalco Industries, said the company is on track to implement organic growth projects entailing a capital outlay of over $1-billion towards Utkal alumina expansion, various aluminium and copper downstream expansions and speciality alumina projects. In Novelis, the capex will be invested mainly in auto-finishing line expansions in the US and China and rolling and recycling capacity expansions in Brazil.

“These investments will advance the strategy of building a more predictable and resilient business model,” Birla told shareholders at the company’s virtual annual meeting on Monday.

June quarter numbers

The company had reported net profit of ₹2,787 crore in the quarter ended June 30, against a net loss of ₹709 crore in the same period last year, driven largely by higher realisation and better contribution by its overseas subsidiary, Novelis. Novelis reported an all-time high quarterly EBITDA of ₹4,090 crore (against ₹1,919 crore) due to an upswing in demand for innovative and sustainable aluminium products.

Also read Hindalco logs Q1 profit of ₹2,787 crore on higher realisation

“The past 18 months have been among the toughest periods for the industry with an unprecedented passage of time that has tested the resilience of corporations and individuals. Through this unsettling period, it has been energising to see how the Hindalco ecosystem evolved and thrived,” he added.

Sustainable growth

Birla said in the fast-changing world, companies need to look beyond short-term goals to ensure sustainable growth.

Despite Covid virus mutations and repeated infection waves has not gone away, there is a strong sense of more silver linings to the economic scenario today than at most points during the pandemic, he said.

Vaccination has made rapid progress globally, with many developed economies approaching herd immunity levels. Emerging market economies are now accelerating their vaccination programs.

While some countries may be pondering over a gradual normalisation of monetary policies, such actions will happen at a measured and calibrated pace. The US and China, which together account for one-third of the world economy, are powering the global economic recovery, he said.

“Vaccination is picking up pace, which would improve India’s resilience against a potential third wave. Various steps taken by RBI and the government have helped in containing the economic disruptions of the pandemic,” Birla said.

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