Hindalco Industries' shares jump 2% post update on aluminium extrusions business; here is what the company said

The company on Sunday said it has not halted operations of its aluminium extrusions business and emphasised that the customer communication -- issued after force majeure claims by some gas suppliers -- was just a routine business intimation regarding potential supply disruption.

Amid evolving geopolitical developments affecting global trade and the economy, Hindalco Industries clarified that there is currently no impact on the company's overall operations or financial performance. "Any potential disruption is limited to a small portion of the aluminium extrusions business," it said in a statement.

The statement comes in the wake of a report that said the company has halted aluminium product sales amid the West Asia crisis.

"Hindalco has not halted operations of its aluminium extrusions business," the company statement added.

"The communication issued to aluminium extrusions customers follows a force majeure declaration by certain gas suppliers and was a routine business notification regarding a potential supply disruption in a segment of the extrusions business," the statement said.

The aluminium extrusions segment constitutes a small portion of Hindalco's total production capacity, with the potential impact confined to under 0.1 per cent of the company's overall operations.

All other downstream and upstream operations, including primary aluminium, continue to operate normally, supported by captive power and alternate energy arrangements, the company said.

Aluminium extrusions: Details

Aluminium extrusions are widely used across industries for their lightweight, high-strength, and corrosion-resistant properties.

Major applications include architectural framing, transportation, automotive parts, heat sinks in electronics, and structural components for solar energy systems.

Hindalco manufactures a wide range of customised aluminium extrusions from 100 per cent premium-quality billets, which are made in-house.

The company added that its core aluminium smelting operations continue to run normally, as these facilities are powered by coal-based captive power, ensuring operational stability. The situation is therefore confined to a limited downstream segment, and the overall effect on the company's production and performance remains minuscule.

Hindalco operates across the value chain, from bauxite mining, alumina refining, coal mining, captive power plants, and aluminium smelting to downstream rolling, extrusions, and foils.

Along with its subsidiary Novelis, Hindalco is the global leader in flat rolled products and the world’s largest recycler of aluminium.

About Hindalco Industries

Hindalco Industries Limited is a leading player in the metals industry in India. The company is primarily engaged in the production of aluminium and copper. It was founded in 1958 as Hindustan Aluminium Corporation Limited by the Aditya Birla Group.

The company commenced production in Renukoot, Uttar Pradesh, in 1962. It produced 20,000 metric tonnes of aluminium metal and 40,000 metric tonnes of alumina annually. The company underwent restructuring and was rebranded as Hindalco in 1989.

Hindalco is one of the top producers of aluminium and copper in India. The metals flagship of the Aditya Birla Group is the world’s largest aluminium producer by revenue and a leading player in copper globally. It’s also one of the largest producers of primary aluminium in Asia.

Hindalco Industries business operations

The operations of Hindalco Industries extend across 19 manufacturing units in India, along with 21 mining operations within the country and 33 manufacturing facilities abroad. Among these overseas facilities, 17 are equipped with recycling capabilities.

Currently, the company operates as an integrated producer across 10 countries, including India.