Hindalco to invest ₹2,000 crore in Coach Manufacturing for Indian Railways

New Delhi, India (Metro Rail Today): Hindalco Industries Ltd, under the leadership of Chairman Kumar Mangalam Birla, has unveiled ambitious plans to foster partnerships and investments that align with India's growth trajectory. Speaking at the company's 64th Annual General Meeting (AGM), Birla announced a strategic partnership with the Indian railways, aiming to invest approximately ₹2,000 crore to introduce new extrusion and fabrication technologies.

This collaboration is poised to support the development of high-speed Vande Bharat trains, a significant step towards modernizing India's railway system. As the railways work towards achieving net-zero emissions and doubling freight capacity, Hindalco's commitment to introducing innovative designs for freight wagons tailored to specific applications, such as bagged cement and foodgrains, further demonstrates its dedication to advancing the transportation sector.

Birla highlighted Hindalco's forthcoming investment of ₹2,000 crore to establish a pioneering copper and e-waste recycling facility. With a focus on advanced metal extraction and refining technologies, this endeavor aims to address the issue of e-waste exportation and promote a circular economy within India. By bringing cutting-edge recycling technology to the nation, Hindalco is poised to contribute significantly to sustainable practices while aligning with India's circular economy agenda.

Additionally, Hindalco's dedication to electric vehicle (EV) manufacturing in India is evident as the company collaborates closely with original equipment manufacturers (OEMs) to co-develop and manufacture critical components such as battery enclosures, motor housings, busbars, and lightweight load bodies. This commitment to the EV sector aligns with the nation's broader efforts to drive clean and sustainable mobility solutions.

Furthermore, Birla emphasized the company's robust capital allocation strategy, with investments of $4.63 billion as capital expenditure for Novelis and India's business. Novelis, a subsidiary of Hindalco, is actively pursuing growth projects totaling $3.5 billion to meet the rising demand for sustainable aluminum products. Hindalco's India business is concurrently executing growth projects of approximately $1.13 billion, spanning industries like e-mobility, packaging, construction, consumer durables, and resource securitization. This diversified approach underscores Hindalco's commitment to driving innovation across various sectors.

Birla attributed the surge in private capital expenditure to the government's proactive efforts, including infrastructure investments and schemes such as the production-linked incentives. He also highlighted India's positioning as a key player in the global supply chain, capitalizing on the shift from the China-centric approach to the China+1 strategy.

Amid these growth initiatives, Hindalco remains committed to prudent financial management, with its Net Debt-to-Ebitda ratio standing well below two times at the end of the fiscal year 2022-23. The company's financial performance, reflected in its June quarter results, underscores its resilience in navigating market challenges. Despite a 40% decline in net profit and a 9% decrease in revenue from operations, Hindalco's Ebitda margin remained stable at 11%, reinforcing its focus on efficiency and sustainability.

In conclusion, Hindalco Industries Ltd's comprehensive strategic vision, encompassing partnerships with the railways, investment in recycling technology, EV manufacturing, and sustainable growth initiatives, positions the company as a key driver of India's economic and environmental transformation. Under Birla's leadership, Hindalco remains committed to innovation, sustainability, and responsible growth.