Indian aluminium producer Hindalco has cut its capital expenditure (capex) by 40pc for both, the Novelis and Hindalco firms.
The company’s capex which stood at Rs23bn in the prior year has been slashed to Rs15bn for FY 2021, ending March 2021.
The company’s capex for Novelis, based in Atlanta, the US, will be $440mn for the year, according to media reports.
Hindalco will continue with its specific projects, such as the expansion of its Utkal facility.
The commissioning for the facility, however, has been postponed from the earlier December 2020 to March 2021.
Hindalco’s MD Satish Pai, in a media address, said that despite economic activities coming to a standstill in India, the smelters continued to operate.
Through their takeaways from running the Novelis unit in China, the company had made necessary arrangements to shore up raw material and utilise the workforce prudently.
He further added that demand for their products has rebounded in China. In India, however, it will depend on activities in the construction and auto sectors.
The company recently declared its Q4 2020 results. Its aluminium production in the quarter rose by 2pc to 327,000mt from Q4 2019.
($1=75.91)