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23 May 2006
Hindalco to set up world-class aluminium smelter
- The new smelter to contribute significantly
in Hindalco's global growth ambitions
- Project to cost Rs. 7,700 crore
- Direct employment for 4,000 people and indirect
employment for 12,000 people
- Hindalco committed to sustainable development
and upliftment of underserved communities
- Project to contribute Rs. 500 crore revenues
to the exchequer
- The state of Madhya Pradesh is an attractive
investment destination with a proactive government.
Hindalco, the Aditya Birla Group's flagship company,
today entered into an MoU with the Madhya Pradesh
government for a greenfield aluminium smelter
in Siddhi district. Mr. O.P. Rawat, Principal
Secretary — commerce, industry and employment,
signed the MoU on behalf of the government, while
Mr. D. Bhattacharya, Managing Director —
Hindalco, represented the Aditya Birla Group.
"The MoU with the government of Madhya Pradesh
marks yet another milestone in our goal of making
Hindalco a non-ferrous metals powerhouse. In aluminium,
our Chairman, Mr. Kumar Mangalam Birla's vision
is to be among the top 10 global players. This
new greenfield aluminium project is a forward
move in this regard", said Mr. D. Bhattacharya.
Dwelling on the linkages between the Aditya Birla
Group and Madhya Pradesh, Mr. Bhattacharya commented,
"We have always been committed to the growth
and development of M.P. Our tryst with the state
dates back to 1948, with the positioning of Grasim
in Nagda, off Ujjain, beginning with our viscose
staple fibre plant. Subsequently in 1972, we put
up our rayon grade caustic soda unit also in Madhya
Pradesh. When our Group forayed into cement in
the 1980's, interestingly the late Mr. Aditya
Birla chose Jawad in this state as its location".
Till now the Aditya Birla Group's investment
in Madhya Pradesh at its VSF and cement plant
are in excess of Rs. 6,000 crore. More than 5,500
people are employed at these plants and ancillarisation/outsourcing
has added to 18,000 more jobs. The aluminium smelter
in Siddhi, at an investment of Rs. 7,700 crore,
is expected to create 4000 to 5000 new jobs and
generate another 12,000 jobs indirectly.
Attributing the Group's interest in Madhya Pradesh
to the government's endeavours in making the state
an attractive investment destination, Mr. Bhattacharya
appreciated the tremendous support provided by
the administration and the government. He profusely
thanked the Honourable Chief Minister, the Finance
Minister, the Principal Secretary and all others
in the government for facilitating the entire
process.
Outlining the contours of the project, Mr. R.K.
Kasliwal, Advisor — Hindalco, said that this
greenfield project entails putting up of a 325,000
tonne aluminium smelter, a 750 MW captive power
plant and a jointly owned captive coal mine. Hindalco
will source the alumina required for this smelter
from Utkal Alumina, the company's greenfield project
in Orissa, in a joint venture with Alcan, Canada.
The new 3.25 lakh smelter in Madhya Pradesh will
need around 6.40 lakh tonnes of alumina. Utkal
Alumina is slated to produce 1.5 million tonnes
of alumina.
The finances for this project have already been
tied up through internal accruals and debt. Hindalco
is an AAA rated corporation. The project is expected
to go on stream in a 4-year time frame, after
all the necessary approvals and infrastructure
support are well in place.
"We feel extremely reassured, given the
unequivocal commitment of the government of Madhya
Pradesh toward the fruition of this project,"
stated Mr. Bhattacharya.
Hindalco has already filed applications for land
and related infrastructure to get the project
going.
Mr. Bhattacharya also dwelt on the Group's social
vision. The Group's social projects are spearheaded
by Mrs.Rajashree Birla through the Aditya Birla
Centre for Community Initiatives and Rural Development.
The Group works in 3,700 villages and reaches
out to 5 million people annually. He said that
in line with the Group's DNA of caring for the
communities among which it operates and as a responsible
corporate citizen, Hindalco will be actively engaged
in the betterment of the underserved communities
in proximity to its proposed smelter.
Currently, Hindalco is involved in the upliftment
of the weaker sections of society in over 520
villages and the company touches the lives of
over 1.5 million people. The company subscribes
to the triple bottom line accountability and is
a signatory to the United Nation's Global Compact.
For more information, contact:
Dr. Pragnya Ram,
Group Executive President,
Corporate Communications,
Aditya Birla Management Corporation Private Limited
Tel: 91-22-6652 5000 / 2499 5000
Fax: 91-22-6652 5741/ 42
Email: pragnya.ram@adityabirla.com
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