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Focusing on downstream value-added products

We visited Hindalco’s (HNDL) Hirakud and Aditya plants in Odisha to understand the processes and operations. The Aditya smelter is one of the most efficient and low-cost smelting plants in the world. It is highly automated with significant usage of technology, cranes and other equipment to control operations. HNDL is increasingly focusing on downstream FRP expansion, which would help improve profitability. This would be a cost-effective integrated process as HNDL would be able to manufacture FRP products using its own hot mill capacity. Through automation and using the latest technology, HNDL is looking to further reduce costs at every process level. It is following strict safety measures and providing simulation-based training processes for optimum efficiency. 

Hirakud FRP facility – Set for strong growth

* The Hirakud plant, which currently has 700 ktpa of Hot Mill capacity, currently runs at a utilization rate of ~30% and caters to 135ktpa of FRP capacity at Hirakud.

* The balance capacity would ensure supply to the upcoming FRP capacities at the Aditya plant (340ktpa expansion in two phases of 170ktpa each).

* The 135ktpa facility at Hirakud manufactures foil stock, can body stock, closure stock, fan blade stock and hard alloys. The facility started commercial production in 2013.

* The Hirakud facility also holds certifications for R&D products feasible for national security with applications in the Navy.

Aditya facility – Best-in-class infrastructure in place

* The Aditya facility, which houses 360ktpa of smelting capacity, is one of the top facilities globally in terms of efficiency, and uses AP36 technology which is used by 22 plants globally.

* The smelting process is highly automated with significant usage of technology, cranes and other equipment to control operations.

* The plant is supported by six captive power units of 150MW each. Out of these, five units are operated at all times and one is a back-up unit. The company procures majority of its coal requirements from Coal India and some from captive coal mines.

* The facility has complete backward-integration for alumina, which is supplied from the Utkal refinery.

Focus on downstream expansion – New FRP facility being set up

* With a focus on profitable growth, HNDL is setting up a 170ktpa of FRP capacity in Phase-1 at the Aditya unit.

* This first coil is expected to be rolled out by the end of CY24 and the entire facility is expected to be operational by Jun’25.

* HNDL would add another 170ktpa of FRP capacity under Phase-2 after the first phase gets started.