The new wire-rod production facility will aim in enhancing the contribution of value-added products from 40 to 60 percent of total sales.
August 16, 2016
An Aditya Birla Group company, Hindalco Industries will invest Rs. 250 Cr. in a new wire-rod production capacity at Dahej in Gujarat. This new facility with a capacity of 2.50 lakh tonne will increase company’s total wire-rod production capacity to 4 lakh tonne from 1.50 lakh tonne. As per media reports, the plant will become operational in March 2018. The strategy behind this investment is to increase the contribution of value-added products from 40 percent to 60 percent of overall sales.
As per reports, Hindalco Industries is planning to make annual investments to increase capacity as the time to set up aluminum and copper plants is lesser and payback time is much faster. The main target is to reduce debt and go higher on the value chain. Also, the target to bring net debt to EBIDTA ratio below five is quite achievable with the increasing focus on value-added products.
