Rs 800 crore capex and FIIs increase stake: This multibagger large cap stock to set up manufacturing facility in Odisha to tap EV market!

Shares of the company gained more than 25 per cent in the last six months.

Aluminium giant Hindalco Industries is gearing up for the electric vehicle (EV) revolution with an Rs. 800 crore investment in a new battery foil manufacturing facility near Sambalpur, Odisha. Scheduled for a July 2025 launch, this plant will initially churn out 25,000 tonnes of battery foil, a vital component in lithium-ion and sodium-ion batteries.

This strategic move capitalizes on the anticipated surge in India's battery-grade aluminium foil demand, projected to reach 40,000 tonnes by 2030 due to the rapid rise of gigafactories. Hindalco's existing Mouda facility, already a trailblazer in battery foil production, will be boosted by the Odisha plant, enabling global gigafactory supply.

Hindalco's expertise in metallurgy, sheet and foil rolling, and in-house aluminium supply provides a solid foundation for this venture. They're further pushing boundaries by developing new coatings and enhancing the strength, thickness, and surface characteristics of their foils. Additionally, collaborations with original equipment manufacturers (OEMs) are underway to co-develop crucial EV components like battery enclosures, motor housings, and busbars.

This investment marks a significant shift for Hindalco, transforming it from a metal manufacturer into a high-tech metal solutions provider for the EV and green energy sectors. The facility's location alongside a 25 MW solar power plant and access to additional solar energy further underscores their commitment to sustainability.

Overall, Hindalco's strategic foray into battery foil production positions them to capitalize on the booming EV market, contribute to India's green initiatives, and solidify their leadership in providing advanced metal solutions for a cleaner future. FIIs have also increased their stake in the company to 27.01 per cent in September 2023 and the stock has delivered multibagger returns of over 110 per cent in the last three years.

The stock has shown impressive growth, and investors should keep a close eye on this stock.    

Disclaimer: The article is for informational purposes only and not investment advice.