Hindalco Industries Ltd’s plans and announcements made at their 64th Annual General Meeting (AGM), partnership with the railways and will invest about ₹2,000 crores.
- Partnership with Railways: Hindalco Industries Ltd plans to partner with Indian Railways and invest approximately ₹2,000 crore. This investment is aimed at introducing new extrusion and fabrication technologies in India. Specifically, they are excited about collaborating on the high-speed Vande Bharat trains.
- Supporting Railways’ Goals: Hindalco is committed to supporting Indian Railways in achieving its goals, including becoming net zero and doubling freight capacity. They intend to introduce three new designs of freight wagons targeting specific applications, such as for bagged cement and foodgrains.
- Copper and E-Waste Recycling Facility: The company is making a significant ₹2,000 crore investment in establishing a first-of-its-kind copper and e-waste recycling facility. This initiative is geared towards addressing the challenge of e-waste and contributing to the circular economy agenda.
- Scaling Up EV Manufacturing: Hindalco has plans to scale up electric vehicle (EV) manufacturing in India. They are collaborating with original equipment manufacturers (OEMs) to co-develop and manufacture critical components for EVs, including battery enclosures, motor housings, busbars, and more.
- Capital Allocation: The Company has allocated substantial capital for growth projects. In 2021, they invested $4.63 billion in capital expenditure for Novelis and their India business. These investments encompass various sectors, including sustainable aluminum products, e-mobility, packaging, construction, consumer durables, and resource securitization.
- Government’s Role: Hindalco attributes the increase in private capital expenditure (capex) to government efforts, particularly initiatives like the production-linked incentives scheme and infrastructure investments. They see India as well-positioned to attract global corporations looking for alternatives to China in their supply chain strategies.
- Financial Performance: The financial performance of Hindalco Industries Ltd in the June quarter saw a 40% decrease in net profit compared to the previous year, primarily due to declining revenues. Revenues from operations declined by 9%. The company’s Ebitda stood at ₹6,109 crore, with an Ebitda margin of 11%.
In summary, Hindalco Industries Ltd is making significant investments in various areas, including rail technology, recycling, and electric vehicle components, to support both India’s infrastructure development and sustainability goals. Despite short-term financial challenges, the company remains committed to long-term growth and innovation.
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