The shares of this Aluminium and Copper producing company jumped around 3 percent after they planned to deploy an investment of up to Rs. 800 crores for the new battery foil plant which will be commissioned by July 2025.
With a market capitalisation of Rs. 1,20,159 crores, the shares of Hindalco Industries Ltd started Tuesday’s trading session positively at Rs. 525 compared to its previous close of Rs. 522.40. The share hit a high of Rs. 538.50, gaining around 3 percent, which is also recorded as company’s fresh 52-week high and is currently at Rs. 535 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing mentioned that they have planned to invest Rs. 800 crores to set up a battery foil manufacturing facility in Odisha’s Sambalpur to tap the growing market for electric vehicles (EVs) and energy storage systems which will be commissioned by July 2025. The plans to set up the battery foil manufacturing plant are aligned with the company’s strategy to tap into the electric vehicle (EV) market.
Initially, the company has planned to produce 25,000 tonnes of the resilient product which forms the backbone of Lithium-ion and Sodium-ion cells. Moreover, the factory will be located alongside a 25 MW solar power plant and can access additional solar energy from a 400 KV National Grid connection. In the process, the project will also provide a push for the government’s green initiative to reduce carbon emissions and build sustainable growth.
In addition, the company is also working with original equipment manufacturers (OEMs) to co-develop and make critical components like battery enclosures, busbars, motor housings, structural and safety components, and lightweight load bodies, many of which are being designed and developed for the first time in India.
This battery foil manufacturing plant will help the company expand its manufacturing capacity of fine-quality aluminium foil that is used in rechargeable batteries to serve the rapidly growing market for electric vehicles (EVs) and energy storage systems.
Coming onto the company’s financial statement, the revenue increased marginally around 2 percent from Rs. 52,991 crores during Q1 FY24 to Rs. 54,169 crores during Q2 FY24. On a contrasting note, the net profits decreased by 10 percent from Rs. 2,454 crores to Rs. 2,196 crores during the same timeframe.
The company’s capex for the next year is expected to be between Rs. 4,000 crores to Rs. 4,500 crores. Furthermore, the company’s capex for Novelis is expected to be in the range of 1.6 billion dollars to 1.8 billion dollars.
Headquartered in Mumbai, Hindalco Industries Ltd was incorporated in 1958. It is a flagship company of the Aditya Birla Group which is primarily engaged in the production of Aluminium and Copper. It is also engaged in the manufacturing of aluminium sheet, extrusion and light gauge products for use in packaging markets like beverage and food, can and foil products, etc.
Written By Vaibhav Patil
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