Hindalco gains more than 3% on announcement to invest Rs 4,000 crore in copper, e-waste recycling facilities

In a strategic move aimed at bolstering its manufacturing capabilities and sustainable development, Hindalco Industries has unveiled a Rs 4,000 crore investment plan for extrusion and recycling facilities. The move was announced by Chairman Kumar Mangalam Birla during the company's 64th Annual General Meeting.

After the announcement, shares of the Aditya Birla Group company jumped more than 3 per cent in morning trade on Wednesday. Shares of Hindalco Industries were trading at Rs 463.15 apiece, up 2.84 per cent, on the NSE at 11:39 AM on Wednesday.

The heavy metal producer has managed to generate returns of over 6 per cent over the past month long period and over 11 per cent over the past year.

Details of the investment plan

A significant portion of the investment, approximately Rs 2,000 crore, is earmarked for the creation of a cutting-edge extrusion facility. This facility will be dedicated to the production of freight wagons and coaches for the Vande Bharat trains.

Additionally, Hindalco Industries is taking a significant stride towards sustainable practices by committing another Rs 2,000 crore to establish a copper and e-waste recycling facility in India. This move underscores the company's commitment to environmental responsibility and its determination to address the pressing issue of electronic waste management.

Kumar Mangalam Birla highlighted that in the fiscal year 2023, Novelis recycled 2.3 million tonnes of aluminium. Despite its international presence, the company's US-based subsidiary, Novelis, maintains a strong connection to India's growth story. The company is the world's largest aluminium recycler.

Novelis Chief Executive Steve Fisher recently announced that it continues to purchase aluminium from Russian producer Rusal, it has refrained from entering new contracts with the firm since the conflict began. The timing of this announcement is significant, as the aluminium industry gears up for the upcoming "mating season," where industry players negotiate deals for aluminium procurement and sales for the following year.