Aditya Birla Group to invest ₹2,500 cr by March 2017

MUMBAI: The Aditya Birla Group announced on Wednesday that it will invest about ₹2,500 crore as capital expenditure by March 2017, signalling the conglomerate’s

MUMBAI: The Aditya Birla Group announced on Wednesday that it will invest about ₹2,500 crore as capital expenditure by March 2017, signalling the conglomerate’s optimism of a revival in the economy that has so far seen less private capital investment.

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Speaking to shareholders at the annual general meeting of group flagship Hindalco, chairman Kumar Mangalam Birla said that the capital expenditure would include a larger investment at the company’s international subsidiary, Novelis, which will see an injection of ₹1,500 crore this year. About ₹1,000 crore would be put into Hindalco India.

Novelis is the world’s largest maker of cans which are used specifically by beverage and beer companies and is typically recycled. High-grade aluminium is also used in cars and in aircraft, which reduces the weight and lowers fuel consumption.

“In 2015-16, the aluminium industry witnessed significant challenges. The average aluminium LME was 16% lower than the previous year. Currently, prices appear to have bottomed out. In the Indian context, the demand scenario has been encouraging. The expected economic turnaround and improving industrial activity bode well for Hindalco,” said Birla.