Hindalco chairman Kumar Mangalam Birla unfazed by new rivals in aluminium
Hindalco chairman Kumar Mangalam Birla dismissed competitive threats from Adani Group's new $11.5 billion aluminium venture, citing the company's low-cost production edge. The AGM comments came even as Hindalco reported
Hindalco Industries is not worried about intensifying competition in India's aluminium sector, with chairman Kumar Mangalam Birla saying the company's position among the world's lowest-cost producers leaves it well placed to defend its market leadership.
“We remain unfazed and unimpacted by any growth plans, by new competition coming into the sector,” said Birla, addressing shareholders at its 67th Annual General Meeting.
Market Conditions
The chairman highlighted that the company's strong financial performance was driven not just by favourable market conditions but by operational efficiency across its manufacturing network.
"Our outstanding results are not just because of market factors. They are also because our plants are run optimally, at optimal productivity levels and consumption norms," Birla said. He said, therefore, “any competition from anyone, from anywhere is welcome, and we are solidly poised to continue with our growth plans,” answering a question on competition from the Adani Group in the aluminium sector.
Earlier this month, billionaire Gautam Adani unveiled plans to enter the aluminium business through a $11.5 billion joint venture with International Holding Company (IHC), marking a direct challenge to market leaders Aditya Birla Group's Hindalco Industries and Vedanta Ltd.
The project, which will initially have a production capacity of 2 million tonnes and be located in Odisha, is expected to take 4.5-5 years before producing its first batch of aluminium, Karan Adani, managing director of Adani Ports and Special Economic Zone (APSEZ) and a director at Adani Cement, Mint reported on 2 July. Karan Adani, the elder son of Gautam Adani, is also expected to spearhead the conglomerate's aluminium business.
India’s largest aluminium producer is currently Vedanta Aluminium Metal Ltd, with an annual production of 2.5 mtpa, followed by Aditya Birla Group’s Hindalco (1.4 mtpa) and public sector firm National Aluminium Co. Ltd (0.5 mtpa).
Competing conglomerates
This will be the third business in which the Adani Group will compete with the Aditya Birla Group, after cement and copper, where the latter remains the market leader and Adani the second-largest player.
Adani Enterprises, Reliance Industries, Hindalco Industries, Vedanta Aluminium, Naveen Jindal-backed Powermech and state-run Coal India have purchased tender documents for Karlapat Bauxite Block, located in Odisha, Mint reported earlier. The block contains over 200 million tonnes of bauxite, making it the largest bauxite reserve available in the current auction, according to commodities market intelligence firm BigMint.
The interest from companies such as Reliance and Powermech, which are not currently major integrated aluminium producers, underscores the strategic importance of securing bauxite resources and signals potential new entrants into the aluminium value chain, setting the stage for greater competition with incumbents.
Birla reiterated Hindalco's plan to invest about $10 billion in organic growth, calling it the most ambitious expansion programme in the company's history. The investment will be spread across aluminium refining, smelting, coal mines, downstream operations and the copper business, including a new smelter and e-waste recycling facilities.
On the demand outlook, Birla said aluminium consumption in India has significant room to grow, with per-capita usage at about 4 kg, compared with a global average of 12 kg. He added that London Metal Exchange aluminium prices are expected to remain in the $3,100-3,500 per tonne range, supporting the industry's growth prospects.
Birla also said US tariff measures introduced under President Donald Trump have had no material impact on Hindalco's operations, while the company's cash reserves would be largely deployed towards value-accretive expansion projects, with the dividend policy maintained.
In FY26, Hindalco reported a 15% jump in consolidated revenue from operations of ₹2.74 trillion on the back of higher aluminium sales and moderate copper sales in the domestic market. A twin blow from two separate fires at its American subsidiary Novelis weighed on Hindalco’s profit. The Aditya Birla Group flagship reported an almost 16% drop in net profit attributable to owners to ₹13,391 crore in FY26 from ₹16,001 crore in FY25.
Hindalco shares closed 0.57% higher at ₹955.45 on BSE while the benchmark Sensex closed 0.47% lower.
Key takeaways
- Birla dismisses competition threats in the aluminium sector, citing cost leadership and plant-level efficiency.
- Adani Group enters the aluminium sector via a $11.5 billion venture, challenging Hindalco and Vedanta.
- Hindalco plans $10 billion organic expansion across refining, smelting, coal and copper.
- India's per-capita aluminium consumption remains well below the global average, indicating growth potential.
- Hindalco's FY26 profit fell 16% despite revenue growth, hurt by fires at Novelis.
About the Author
Dipali Banka
Dipali Banka is a Mumbai-based journalist who treats corporate reporting less like a beat and more like a puzzle to be solved. This invariably means she has to read through annual reports and speak with leaders and analysts. She tracks policies, deals, and the pulse of industries spanning metals, mining, paints, and cement, alongside aviation. She started out as an intern at The Statesman and then completed her postgraduate diploma in journalism from Asian College of Journalism, Chennai, in 2025. Relentlessly curious at heart, Dipali is driven by the simple urge to understand how things work and who they impact. Armed with an enduring fascination for steel and aeroplanes, she moves through the churn of daily news with focus, turning complexity into clarity without losing the story. She is particularly committed to shaping numbers into objective narratives, having little appetite for vagueness that gets in her way.
Outside the newsroom, Dipali is an unapologetically loud presence who values long conversations and longer walks to unwind. She devours books of all kinds and can often be found indulging in the lyrical sway of contemporary ghazals. She ardently believes that her relationship with her bylines is more sacred than it would ever be with anyone across the human race.
Source: Livemint — Companies
