- 18 Sep 2024
- ICICI Securities
FOCUSING UPON VALUE ADDED PRODUCTS & CIRCULAR ECONOMY FOR COPPER BUSINESS
News: As per media sources, Hindalco has developed a new copper-silver alloy, which will be utilized in high-speed urban transportation, dedicated freight corridors, and metro rail network. It is also envisaging setting up of a sizeable copper recycling plant utilising electronic waste.
Views: This is part of the company's ongoing expansion into value added products within the copper segment. The company is already setting up the Inner Grooved Copper facility with 25 KTPA under the PLI scheme, aimed at air conditioning and refrigeration application serving as an import substitution. Moreover, the company will be investing ₹ 2,450 crores in setting up copper projects and e- waste recycling plants in Dahej, Gujarat with the production capacity of 200 KT of copper annually. This initiative will reduce reliance on imports, as 90% of copper concentrates are used at the company's plant is imported. Thus, the ongoing efforts will help the company to explore newer markets and aid margin expansion. Consequently, we maintain a positive outlook on the stock.
Impact: Positive