Hindalco chairman Kumar Mangalam Birla unfazed by new rivals in aluminium
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
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 onditions 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. Also Read | Hindalco limps through Q4 but eyes stronger finish line "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 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.
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