23-Aug-2023
2 mins read
Revolutionising the Indian Railways
The global leader in aluminium and copper production, Hindalco Industries Limited, has laid out an impressive blueprint, stepping into the future of transportation. The company wants to introduce state-of-the-art extrusion and fabrication technologies to the Indian subcontinent. The Vande Bharat trains, which are India’s flagship high-speed rail project, are central to this venture.
During the 64th annual general meeting, Kumar Mangalam Birla, Chairman of Hindalco Industries Limited, expressed immense enthusiasm about this collaboration. He believes that aligning with the Indian Railways will transform the passenger coach manufacturing ecosystem in the country.
Championing Environmental Goals
Hindalco’s commitment isn’t just limited to transportation. Recognising the Indian Railways’ monumental goal of becoming carbon-neutral, Birla reiterated the company’s unwavering support in this sustainable endeavour. “In line with this commitment,” he mentioned, “we’re gearing up to introduce three innovative designs of freight wagons. These are meticulously designed, targeting specific end-use applications, notably bagged cement and food grains.”
Pioneering a Sustainable Future: The E-Waste Initiative
Environmental sustainability remains a cornerstone of Hindalco’s mission. To underscore this, the company is setting aside a colossal Rs 2,000 crore for a groundbreaking initiative. This project will birth India’s premier copper and E-waste recycling facility. Given the pressing challenges surrounding e-waste management and the prevalent practice of exporting significant e-waste volumes due to a domestic tech gap, this initiative is a monumental step forward.
Charging Ahead in the EV Domain
The buzz around the electric vehicle (EV) segment in India is palpable, and Hindalco is strategically positioning itself to be at the forefront. By joining hands with Original Equipment Manufacturers (OEMs), Hindalco is venturing into the co-development and manufacturing of integral EV components. These include pivotal parts like battery enclosures, motor housings, and more. Elaborating on this, Birla proudly shared, “Our ongoing projects for battery foils, coated aluminium fins, and aerospace-grade extrusions are swiftly progressing. These endeavours make Hindalco an indispensable partner for diverse industries, echoing the ‘Make in India’ spirit.”
A Glimpse into the Financial Framework and Future Projections
Birla took a moment to detail the company’s capital roadmap for 2021, revealing significant global investments. He spotlighted Novelis, Hindalco’s esteemed subsidiary, which is channelling funds into sustainable aluminium products across countries like the US, South Korea, and Brazil.
Attributing the surge in private capital expenditure to proactive Indian government policies, especially the production-linked incentives scheme, Birla emphasised India’s rapidly cementing position in the global manufacturing arena.
On the financial health front, the company continues to showcase prudent fiscal management. Even amidst aggressive expansion strategies, Hindalco has successfully managed to keep its debt-to-EBITDA ratio under two times as of FY 2022-23. However, a note of caution arises from the 40% decline in net profit and a 9% drop in revenue in the June quarter.
In an era where technological innovations intersect with sustainable initiatives, Hindalco’s bold strides herald a bright industrial future for India.