Rs 500,00,00,000 Investment: Company Delivers 10,000 Aluminium Battery Enclosures to Mahindra from its New State-of-the-Art Facility in Chakan
The shares of the PE of 10x whereas the industry PE is 25x.
Hindalco Industries, a leading global aluminium producer under the Aditya Birla Group, has achieved a significant milestone in India's electric vehicle (EV) sector. The company announced the successful delivery of 10,000 aluminium battery enclosures to Mahindra for their upcoming eSUVs, the BE 6 and XEV 9e. This collaboration signifies a powerful alliance between two major Indian manufacturers to accelerate the adoption of clean mobility across the nation.
To further solidify its commitment to the EV component market, Hindalco also inaugurated its state-of-the-art manufacturing facility in Chakan, Pune. This Rs 500 crore investment, spread across 5 acres, marks Hindalco's strategic entry into the production of lightweight and crash-resistant battery solutions. The facility currently boasts an annual production capacity of 80,000 enclosures, with plans for future expansion to 160,000 units, demonstrating Hindalco's proactive approach to meeting the growing demand in the EV sector.
The aluminium battery enclosures co-developed with Mahindra offer substantial advantages over traditional steel designs, including a significant 40 per cent weight reduction. This weight optimisation translates to an 8–10 per cent improvement in the vehicle's driving range, enhanced safety during collisions, and superior thermal management for battery cooling. Furthermore, Hindalco's use of low-carbon aluminium in these enclosures underscores its dedication to sustainability. The Chakan facility is also expected to generate up to 1,000 jobs and proudly features a nearly 100% female workforce in machine operations, aligning with the 'Make in India' initiative and showcasing Hindalco's commitment to inclusivity. With this achievement, Hindalco aims to extend its capabilities to serve other domestic and international automotive manufacturers, positioning itself as a key player in the evolving EV value chain.
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Hindalco Industries, the Aditya Birla Group's metals flagship, is the world's largest aluminium company by revenue and the second-largest copper rod producer (outside China). Their integrated operations cover the entire aluminium value chain, and through their subsidiary Novelis, they lead in flat-rolled products and aluminium recycling. As India's largest copper producer, Hindalco operates a significant complex in Gujarat and maintains a global footprint across 10 countries. Recognised for its sustainability efforts, Hindalco has been ranked the world’s most sustainable aluminium company in the DJSI for five consecutive years (2020-2024).
The company has a market cap of over Rs 1.4 lakh crore. The stock’s 52-week high is Rs 772 per share and its 52-week low is Rs 546 per share. The shares of the PE of 10x whereas the industry PE is 25x. Investors should keep an eye on this Large-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.