Jindal Aluminum to invest ₹100-150 crore in Bhiwadi plant to increase capacity

The company invested ₹250 crore in the facility in 2022, following an initial investment of ₹100 crore for acquisition in 2021.
Vice-chairman and Managing director of Jindal Aluminium Pragun Khaitan

New Delhi: Jindal Aluminium Limited (JAL) is planning to invest around ₹100-150 crore in its Bhiwadi plant to increase its capacity to 60,000 tonnes per year. This investment comes after the company infused ₹250 crore into the facility in 2022, following an initial investment of ₹100 crore for acquisition in 2021. With a total investment of approximately ₹500 crore, their aim is to meet the growing demand for their products.

According to Pragun Khaitan, the vice-chairman and managing director of JAL, these investments are crucial to fuel their growth, considering the rising demand. Jindal Aluminium is currently the largest aluminum extrusion company in India, with a production capacity of 125,000 tonnes per year. They hold a significant market share in the country's extrusion industry and are also the largest manufacturer in India. They are actively exploring new opportunities in domestic manufacturing and continuously expanding their presence in the export market.

India currently has enough domestic capacity to meet its annual demand for aluminum, which is approximately 4 million tonnes. However, the consumption of aluminum in India is projected to grow at a compound annual growth rate (CAGR) of 10-11% over the next decade. Pragun Khaitan, the vice-chairman and managing director of Jindal Aluminium Limited (JAL), believes that the company will stay ahead of this growth curve and be able to meet the increasing demand.

JAL plans to invest significantly in innovation and research and development (R&D) to reduce expenses, streamline processes, and minimize waste, resulting in cost savings. Khaitan emphasized the company's focus on advancing technology, enhancing productivity, and controlling manufacturing costs. They aim to create a state-of-the-art extrusion facility that adheres to global standards in terms of technology, plant design, and overall facility creation. JAL's goal is not to benchmark themselves against Indian competitors, but rather against global competition.

In addition to their domestic expansion plans, JAL also intends to focus on building capital expenditure (capex) and technological capabilities in order to expand into other markets in the long run. One specific market they are targeting is the railway sector.