Hindalco looks to take 'direct' route to rev up auto parts biz
Hindalco Industries, the world's largest aluminium rolling and recycling company, is looking at a bigger play in the auto component business by leveraging the growing electric vehicle (EV) industry, said people aware of the company's plans.
Towards this, the Aditya Birla Group metals flagship is devising ways to become a direct supplier to automakers as part of a broader strategy to strengthen its aluminium «downstream businesses (value added products),» the people said.
EVs, which utilise many aluminium parts since the metal is lighter than steel, will be the centrepiece of its new strategy. To fast-track the plan, Hindalco is also scouting for acquisitions in this space, the people said.
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«The company is trying to get closer to customers and instead of being a supplier to a tier 2-3 supplier, it's looking to be a supplier to the auto manufacturers. In addition to helping in moving up the value by becoming a direct supplier of precision parts from a mere material supplier, it would also help the firm boost its margins,» one of the persons said.
Hindalco didn't respond to ET's queries.
Hindalco initiated its revamped strategy in 2022, embarking on a $6.1 billion capex expansion plan over a five-year period. This includes spending $735 million to add 260 kilotonnes to its downstream capacity through organic expansions till FY27.
Carving out a business unit for the personal mobility segment focused on EVs and related
