Hindalco Commits INR 21,000 Cr to Smelter Expansion, Commissions FRP and Battery Foil Facilities in Odisha
Hindalco Industries has announced an INR 21,000 crore 3.6 lakh-tonne-per-annum smelter expansion in Sambalpur, Odisha and commissioned a 1.7 lakh-tonne-per-annum flat rolled products and battery-grade aluminium foil manufacturing facility with an investment of INR 4,500 crore.
January 28, 2026. By Mrinmoy Dey
These projects are a major step in indigenising critical raw materials for lithium-ion batteries in India, supporting the electric mobility and energy storage ecosystem, while enhancing domestic capabilities in high-grade aluminium products, the company said in a statement.
The battery-grade aluminium foil facility draws input directly from the FRP complex and is designed to support up to 100 GWh of lithium-ion cell manufacturing capacity, the company stated.
It further added that these projects form part of Hindalco’s broader growth capital expenditure programme, with around INR 37,000 crore planned for Odisha across upstream and downstream aluminium operations. The Odisha investments are a significant component of the company’s overall growth capex of INR 55,000 crore across India.
Hindalco claims to be India’s largest flat rolled products player, accounting for over 50 percent of the domestic market. With nearly 40 percent of flat-rolled aluminium currently imported into India, the expanded FRP capacity is expected to reduce import dependence by nearly half, supporting domestic manufacturing and improving India’s competitiveness in high-grade aluminium products, the company stated.
The smelter expansion at Aditya Aluminium will also mark a step forward in energy transition, with a portion of its power requirement planned to be met through round-the-clock renewable energy (RE-RTC), integrating sustainability considerations into large-scale industrial growth, it said.
Commenting on the development, Kumar Mangalam Birla, Chairman, Aditya Birla Group, said, “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. Our long-standing partnership with Odisha continues to play an important role in this journey. This strategy strengthens India’s self-reliance, supports critical sectors, and accelerates the nation’s transition towards advanced, sustainable manufacturing.”
Satish Pai, Managing Director, Hindalco Industries, added, “The FRP expansion and smelter growth at Sambalpur exemplify our integrated upstream–downstream growth strategy. This enables Hindalco to deliver high-quality aluminium solutions across packaging, defence, electric mobility, renewable energy and advanced manufacturing, positioning us strongly to support India’s industrial ambitions while creating long-term value.”
Hindalco’s presence in Odisha spans over 15 years, during which it has already invested more than INR 25,000 crore across bauxite mining, alumina refining, primary aluminium smelting, and downstream manufacturing. The company’s operations link upstream resources, bauxite, alumina, and primary aluminium with high-value downstream products like FRP and battery foil, creating a fully integrated aluminium ecosystem, asserted the company.
It further highlighted that the broader investment pipeline includes the FRP and battery foil manufacturing facilities, the primary aluminium smelter expansion, Kansariguda alumina refinery, Meenakshi coal mine, specialised materials such as white fused alumina, and ancillary manufacturing.
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