- 12 Dec 2024
- ICICI Securities
EXPLORING OPPORTUNITIES IN ALUMINIUM AND COPPER SEGMENT
News: As per media sources, the company is planning to diversify into other metals such as aluminium and copper. It is currently engaged with consultants for financial feasibility of such expansion.
Views: This is amidst a growing opportunity present in domestic space as the demand for aluminum is anticipated to double from ~4.5 million tonnes (MT) in FY23 to ~9 MT by FY33. Similarly, copper consumption is expected to rise from around 1 MT in FY23 to nearly 2 MT by FY33. This growth is fueled by sectors such as infrastructure, packaging, and emerging industries like electric vehicles and renewable energy. In our coverage, Hindalco is already into this segment, investing ~US $4 to $5 billion in capex for its Indian aluminum and copper operations. Accordingly, we will closely track the JSW Steel developments regarding expansion and capital expenditure plans in this area.
Impact: Neutral