Novelis to Ramp Up Automotive Aluminium Offerings: Hindalco’s Pai

Hindalco Industries’ managing director Satish Pai told local media this week that the firm is continuing to position itself in front of an expected rise in automotive aluminium demand by expanding the offerings of their Atlanta subsidiary Novelis.

Pai said that current production plans would have Novelis’ shipments of automotive aluminium rise to fully one-quarter of the firm’s total output.

“Auto shipments from Novelis were 18 per cent in 2016, and in the next year or so, around 25 per cent of our shipments will be auto,” he explained.

“Electric vehicles are going to be a big trend. They are much more aluminium-in tensive than some of the other straightforward con versions for aluminium that we see.”

Pai went on to say that much of the firm’s existing capacity is devoted to aluminium can production. However, as automotive demand continues to grow by leaps and bounds, Novelis would see more production equipment dedicated to automotive aluminium.

Novelis would continue to retain its title as the global leader in aluminium can sheet however, he clarified.

In a conference call earlier this year Novelis management told investors that the firm was planning to devote US$100 million to construction of 100 thousand metric tons per annum of new capacity, which experts assume will be largely (if not entirely) devoted to automotive aluminium.

Hindalco, one of the world’s largest rolled aluminium companies and one of Asia’s biggest aluminium producers, is the “flagship” subsidiary of the Aditya Birla Group. The firm has annual sales of around US$15 billion and employs roughly 20,000 people.

Novelis is a subsidiary of Mumbai’s Hindalco Industries Ltd. Based in Atlanta, the firm accounts for almost half of Hindalco’s consolidated revenue. The world’s largest recycler of aluminium, Novelis conducts operations in ten different countries, employs around twelve thousand people, and reported US$10 billion in revenue for the most recent fiscal year.



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