How is Hindalco Industries accelerating India’s clean mobility with Mahindra?
Hindalco Industries Limited, the flagship metals company of the Aditya Birla Group, has taken a decisive step into the electric vehicle (EV) component manufacturing sector. On April 25, 2025, the company announced the delivery of 10,000 aluminium battery enclosures to Mahindra & Mahindra Limited from its new, state-of-the-art facility in Chakan, Maharashtra. This major milestone signals a significant leap forward for India’s clean mobility ambitions, with Hindalco positioning itself as a critical player in the country’s evolving EV value chain.
The Chakan facility was developed with an investment of ₹500 crore and spans five acres within a prominent industrial park in Pune, one of India’s leading automotive hubs. Designed to produce lightweight, crash-resistant battery enclosures, the plant initially has the capacity to manufacture 80,000 units annually, with plans already underway to scale production to 160,000 enclosures per year.
What is the strategic importance of Hindalco’s Chakan facility?
Hindalco’s Chakan plant marks its formal foray into the EV component sector, signifying a strategic pivot from raw material production towards high-value engineered products. Managing Director Satish Pai emphasised that this facility represents a fundamental shift from India’s earlier reliance on imported EV parts towards building high-performance, localised aluminium solutions.
The company has already placed over 3,000 Mahindra EVs featuring its battery enclosures on Indian roads. Designed collaboratively with Mahindra, these enclosures deliver up to 40% weight reduction compared to traditional steel alternatives, resulting in an 8–10% improvement in vehicle driving range. They also offer enhanced crash safety features and superior thermal management, crucial for maintaining battery efficiency and safety in varying Indian climatic conditions.
Further strengthening Hindalco’s sustainability credentials, the enclosures are manufactured using low-carbon aluminium, underscoring its broader commitment to environmental stewardship.
How does this partnership support Mahindra’s EV ambitions?
Rajesh Jejurikar, Executive Director and CEO of Mahindra & Mahindra’s Auto and Farm Sector, emphasised the importance of localised partnerships in building India’s EV future. He indicated that Hindalco’s materials innovation and strong engineering capabilities were vital in developing efficient and sustainable battery solutions. The collaboration is expected to significantly bolster Mahindra’s EV models like the BE 6 and XEV 9e, enhancing their market competitiveness by combining lightweight design with enhanced performance metrics.
This alliance not only reflects Mahindra’s leadership in India’s EV transformation but also demonstrates the growing trend among Indian original equipment manufacturers (OEMs) to work closely with domestic suppliers to drive innovation and cost efficiencies.
Why is Hindalco’s focus on gender diversity significant?
A standout feature of Hindalco’s Chakan operation is its nearly all-women technical workforce. Almost 100% of the machine operators employed at the facility are women — a rarity in India’s manufacturing sector. This initiative aligns with Hindalco’s broader commitment to inclusivity and gender diversity, challenging traditional norms and setting a precedent for other industrial players to follow.
The facility is expected to generate up to 1,000 direct and indirect employment opportunities, contributing to local economic development while supporting the government’s ‘Make in India’ initiative aimed at strengthening domestic manufacturing capabilities and reducing import dependency.
What are Hindalco’s future plans for the EV sector?
Building on the success of its Mahindra collaboration, Hindalco intends to expand its EV-focused aluminium solutions to other Indian and global OEMs. Beyond battery enclosures, the company plans to offer structural and crash-relevant aluminium components for both electric vehicles and internal combustion engine (ICE) vehicles.
Hindalco’s broader strategy reflects an understanding of evolving automotive trends. As India’s EV ecosystem matures with the proliferation of gigafactories and localised battery cell production, the demand for advanced aluminium components is expected to surge. By investing early in EV-specific capabilities, Hindalco aims to secure a leadership position in supplying critical materials for next-generation mobility solutions.
How does this development strengthen Hindalco’s global position?
With a consolidated revenue base of $26 billion, Hindalco is already recognised as the world’s largest aluminium company by revenue and a leading copper rod manufacturer outside China. Through its wholly owned subsidiary Novelis Inc., Hindalco is the global leader in flat rolled aluminium products and the world’s largest recycler of aluminium.
In recent years, Hindalco’s focus on sustainability and innovation has earned it the top spot in the Dow Jones Sustainability Indices (DJSI) for aluminium companies globally, an accolade it has retained for five consecutive years from 2020 through 2024. The new Chakan facility extends this legacy by aligning manufacturing expansion with environmental and social goals, reinforcing Hindalco’s reputation as a responsible industry leader.
By anchoring itself deeper into India’s fast-growing EV market and strengthening its partnerships with automotive leaders like Mahindra, Hindalco is not only enhancing its domestic footprint but also positioning itself as a critical player in global EV supply chains.
What is the sentiment around Hindalco’s stock after this announcement?
Investor sentiment around Hindalco Industries Limited has remained moderately cautious following the Chakan facility announcement. As of April 25, 2025, Hindalco’s stock closed at ₹622.10 on the NSE, registering a 1% decline from the previous trading session. Over the past month, the stock has fallen approximately 10.43%, mirroring broader market volatility and sector-specific headwinds.
Foreign Institutional Investors (FIIs) marginally increased their holdings to 28.15% in March 2025, while Domestic Institutional Investors (DIIs) raised their stake to 28.7%. Mutual funds have maintained stable holdings at 13.29%, suggesting continued institutional confidence despite near-term market pressures.
Brokerage houses have offered a mixed view. While some analysts have downgraded Hindalco from “Buy” to “Accumulate” due to concerns over weak aluminium prices and potential demand slowdowns, the average target price remains around ₹734, indicating an 11% upside from current levels. Technical indicators signal bearish trends in the short term, with the stock breaking below key support levels; however, recovery potential exists if the share price closes above ₹667.65 in upcoming sessions.
Strategically, analysts view Hindalco’s diversification into EV component manufacturing as a long-term positive, likely to offset cyclicality in its core commodities business. Investors with a long-term horizon could consider accumulating Hindalco shares on dips, while maintaining vigilance on commodity price trends, currency movements, and EV sector adoption rates.
The Chakan expansion is seen as a proactive move aligning with India’s EV growth trajectory, potentially strengthening Hindalco’s fundamentals over the next three to five years.
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