Hindalco Looking To Set Up Rs 3,000-Crore Aluminium Recycle Unit

Hindalco Industries Ltd. is looking to set up a recycling unit and a segregator for aluminium and copper in Gujarat as it plans to increase the proportion of recyclable products on the lines of its US subsidiary.

The plants will have the segregation unit as well as the smelter with a capacity of 100,000 tonnes, Hindalco Managing Director Satish Pai told BQ Prime. “We are evaluating locations in Gujarat for the project. As per initial estimates, it will require an investment of Rs 3,000 crore.”

The company will also look at recycling of copper as well and may require a similar amount towards investments, according to another official.

As India will move towards green transition, availability of non-ferrous metals like lithium, cobalt and zinc will become difficult. It is critical to develop the alternative supply chain where recycling will play an important part, Pai said.

Novelis Inc.- the company’s US subsidiary that consumes around 4 million tonnes of aluminium – uses 65% of its requirement as recycled aluminium, according to Pai. “We want to replicate a similar process in India,” he said. “Segregation of aluminium from various waste products is a challenge at present, but we will eliminate that gradually.”

Novelis is the leading producer of flat-rolled aluminum products and the world’s largest recycler of aluminum, according to its website.

In the US, Novelis is able to use recycled aluminium because the US has a streamlined process of collecting and segregating the waste. The Indian government has now started focusing on collection of waste that will have a great impact on the businesses, Pai said.