As per the reports in the media, Hindalco is considering a capital expensiture of Rs. 2000 crore in the coming financial year. Most of the investment will be made on ramping capacity of its Utkal alumina refinery in Odisha.
As per media reports, Hindalco managing Director Satish Pai during company’s earnings conference call, stated, “So this year's Capex has been around Rs 1,300 crores, whereas next year's will be around Rs 2,000 crores. So, the first use of the cash will actually go towards that growth Capex. We will only repay more after we have done our growth Capex projects’’.
The Utkal alumina refinery is being ramped up by the company to three million tonnes per annum. The expansion is expected to be completed by FY21 and is estimated to cost a total of about Rs 5000 crore.
The Utkal refinery is being fueled by Hindalco’s captive bauxite mines in Baphlimali. As per the reports, the mines have enough reserves to cater to the refinery's requirement for 25 years after it is ramped up.