Hindalco Industries is set to expand the production capacity of its Kuppam unit in Andhra Pradesh by 10 Kilo-Tonnes Per Annum (KTPA). This strategic move, with an estimated investment of ₹768 crore (excluding IDC), aims to boost overall production and support the company’s growth objectives. The expansion is expected to be completed by FY2029, with internal accruals and debt financing the project.
Hindalco Boosts Production Capacity at Kuppam Unit
Hindalco Industries has announced a significant capacity expansion initiative at its Kuppam unit, located in Chitoor, Andhra Pradesh. The company plans to add 10 Kilo-Tonnes Per Annum (KTPA) to its existing production capacity. This expansion is a key part of Hindalco’s strategy for growth and market consolidation within the aluminium sector.
Investment and Timeline
The total investment required for this expansion project is estimated at ₹768 crore, with an additional ₹40 crore allocated for Interest During Construction (IDC). The financing for this substantial capital expenditure will be sourced through a combination of internal accruals and debt. The company anticipates the expanded capacity to be operational by FY2029.
Current Operations and Rationale
Currently, the Kuppam unit operates with a capacity of up to 20 KTPA and maintains an existing capacity utilization rate between 80% and 85%. The rationale behind this proposed addition is clearly stated as Growth & Expansion, indicating Hindalco’s commitment to scaling its operations to meet increasing market demand and reinforce its competitive position.
Source: BSE
