Hindalco's ₹21,000 Cr Odisha Smelter Expansion Plan 2026

Introduction to the Major Expansion

Hindalco Industries Ltd, a flagship company of the Aditya Birla Group, announced a significant investment to expand its aluminium operations in Odisha. The company has committed ₹21,000 crore for the expansion of its Aditya Aluminium smelter located in Sambalpur. This move is a central part of a broader ₹37,000 crore investment strategy for the state, aimed at bolstering India's manufacturing capabilities, reducing dependency on imports, and supporting the burgeoning electric vehicle (EV) ecosystem. The announcement underscores Hindalco's long-term growth plans, with the Odisha projects forming a substantial portion of its total ₹55,000 crore capital expenditure program across India.

Details of the New Facilities

The investment plan includes two primary components. The largest portion, ₹21,000 crore, is allocated for a 3.6 lakh-tonne-per-annum expansion of the smelter at the Aditya Aluminium complex. In addition to this upstream expansion, Hindalco has also commissioned new downstream facilities. A new Flat Rolled Products (FRP) and battery-grade aluminium foil manufacturing facility, built with an investment of ₹4,500 crore, was inaugurated by Odisha Chief Minister Mohan Charan Majhi. This new unit has a capacity of 1.7 lakh tonnes per annum and is strategically positioned to cater to high-growth sectors. These projects are designed to create a fully integrated aluminium ecosystem within the state, from raw materials to high-value finished products.

Strengthening Domestic Manufacturing

A key objective of this expansion is to enhance India's self-reliance in the aluminium sector. Hindalco is already the country's largest producer of flat rolled products, holding over 50% of the domestic market share. However, India currently imports nearly 40% of its flat-rolled aluminium. The newly commissioned FRP capacity is projected to reduce this import dependence by almost half. By increasing domestic production of high-grade aluminium products, Hindalco aims to improve India's manufacturing competitiveness and secure supply chains for critical industries, including defence and advanced manufacturing.

A Strategic Push into the EV Ecosystem

The commissioning of India's first battery-grade aluminium foil facility marks a pivotal step in localising the supply chain for lithium-ion batteries. This facility is designed to support up to 100 GWh of cell manufacturing capacity, providing essential raw material for the EV and energy storage sectors. The high-performance aluminium foil acts as a current collector for the cathode materials in battery cells. By producing this critical component domestically, Hindalco is directly contributing to the government's green initiatives and the Atmanirbhar Bharat mission. The company is also working with original equipment manufacturers (OEMs) to co-develop other critical EV components like battery enclosures and motor housings.

Odisha at the Core of Hindalco's Growth Strategy

The ₹37,000 crore planned investment solidifies Odisha's position as a strategic hub for Hindalco's operations. The state is central to the company's upstream and downstream expansion plans. Beyond the smelter and FRP facilities, Hindalco's investment pipeline in Odisha includes a new alumina refinery in Kansariguda and the Meenakshi coal mine. This comprehensive approach ensures raw material security and creates a vertically integrated operational model, enhancing efficiency and control over the entire production process.

Key Investment Breakdown

To provide a clear overview of the financial commitments, the following table summarizes the key projects announced by Hindalco:

Commitment to Sustainability and Job Creation

Hindalco has integrated sustainability into its expansion plans. A significant portion of the power required for the expanded smelter capacity will be sourced from round-the-clock renewable energy. This aligns with the company's broader goals of reducing its carbon footprint. Furthermore, these projects are expected to have a substantial socio-economic impact. The company estimates that the new investments will generate over 15,000 additional direct and indirect jobs, providing a significant boost to local employment in the region.

Leadership Vision for an Integrated Ecosystem

Kumar Mangalam Birla, Chairman of the Aditya Birla Group, emphasized the strategic rationale behind the investments. He stated, “India’s manufacturing growth depends on integration, value addition and sustainability. Through Hindalco, we are building a fully integrated aluminium ecosystem that spans from upstream resources to high-value downstream products.” He highlighted the long-standing partnership with Odisha as crucial to this journey, noting that the strategy strengthens India's self-reliance and accelerates the nation's transition towards advanced, sustainable manufacturing.

Market Response to the Announcement

The market responded positively to the announcement. On the day of the announcement, January 27, 2026, shares of Hindalco Industries Ltd closed at ₹960.45 on the BSE, marking an increase of ₹10.15, or 1.07%. This reflects investor confidence in the company's growth strategy and its potential to capture emerging opportunities in domestic and global markets.

Conclusion: A Step Towards Self-Reliance

Hindalco's massive investment in Odisha is a clear indicator of its commitment to domestic value addition and strategic market positioning. By expanding its smelter capacity and venturing into critical components for the EV industry, the company is not only scaling its operations but also contributing significantly to India's industrial self-reliance. The successful execution of these projects will likely strengthen Hindalco's market leadership and support the nation's broader economic and environmental goals.