Hindalco chairman Kumar Mangalam Birla unfazed by new rivals in aluminium

Hindalco Industries is not worried about intensifying competition in India's aluminium sector, with chairman Kumar Mangalam Birla saying the company's position among the world's lowest-cost producers leaves it well placed to defend its market leadership.

“We remain unfazed and unimpacted by any growth plans, by new competition coming into the sector,” said Birla, addressing shareholders at its 67th Annual General Meeting.

The chairman highlighted that the company's strong financial performance was driven not just by favourable market conditions but by operational efficiency across its manufacturing network.

"Our outstanding results are not just because of market factors. They are also because our plants are run optimally, at optimal productivity levels and consumption norms," Birla said. He said, therefore, “any competition from anyone, from anywhere is welcome, and we are solidly poised to continue with our growth plans,” answering a question on competition from the Adani Group in the aluminium sector.

Earlier this month, billionaire Gautam Adani unveiled plans to enter the aluminium business through a $11.5 billion joint venture with International Holding Company (IHC), marking a direct challenge to market leaders Aditya Birla Group's Hindalco Industries and Vedanta Ltd.

The project, which will initially have a production capacity of 2 million tonnes and be located in Odisha, is expected to take 4.5-5 years before producing its first batch of aluminium, Karan Adani, managing director of Adani Ports and Special Economic Zone (APSEZ) and a director at Adani Cement, Mint reported on 2 July. Karan Adani, the elder son of Gautam Adani, is also expected to spearhead the conglomerate's aluminium business.

India’s largest aluminium producer is currently Vedanta Aluminium Metal Ltd, with an annual production of 2.5 mtpa, followed by Aditya Birla Group’s Hindalco (1.4 mtpa) and public sector firm National Aluminium Co. Ltd (0.5 mtpa).

This will be the third business in which the Adani Group will compete with the Aditya Birla Group, after cement and copper, where the latter remains the market leader and Adani the second-largest player.

Adani Enterprises, Reliance Industries, Hindalco Industries, Vedanta Aluminium, Naveen Jindal-backed Powermech and state-run Coal India have purchased tender documents for Karlapat Bauxite Block, located in Odisha, Mint reported earlier. The block contains over 200 million tonnes of bauxite, making it the largest bauxite reserve available in the current auction, according to commodities market intelligence firm BigMint.

The interest from companies such as Reliance and Powermech, which are not currently major integrated aluminium producers, underscores the strategic importance of securing bauxite resources and signals potential new entrants into the aluminium value chain, setting the stage for greater competition with incumbents.

Birla reiterated Hindalco's plan to invest about $10 billion in organic growth, calling it the most ambitious expansion programme in the company's history. The investment will be spread across aluminium refining, smelting, coal mines, downstream operations and the copper business, including a new smelter and e-waste recycling facilities.

On the demand outlook, Birla said aluminium consumption in India has significant room to grow, with per-capita usage at about 4 kg, compared with a global average of 12 kg. He added that London Metal Exchange aluminium prices are expected to remain in the $3,100-3,500 per tonne range, supporting the industry's growth prospects.

Birla also said US tariff measures introduced under President Donald Trump have had no material impact on Hindalco's operations, while the company's cash reserves would be largely deployed towards value-accretive expansion projects, with the dividend policy maintained.

In FY26, Hindalco reported a 15% jump in consolidated revenue from operations of ₹2.74 trillion on the back of higher aluminium sales and m...