Hindalco Industries will begin paying a brand royalty to Birla Group Holdings Pvt. Ltd., marking a transition from family-led stewardship to a structured governance framework. According to reports from CNBC TV18, Managing Director Satish Pai confirmed during the company's post-earnings conference call that Hindalco will pay the same type of royalty to Birla Group Holdings Private Limited. The royalty is set at 0.25% of revenue, capped at ₹225 crore annually, and will not impact the company's capital allocation or dividend policy.
Pai explained that ownership of the Aditya Birla brand has remained with Birla Group Holdings Pvt. Ltd., which had not charged royalty for the use of the brand over the years, making it an exception among large Indian conglomerates. As reported by CNBC TV18, the new framework is aimed at investing in and strengthening the Aditya Birla brand for the future. Related-party transactions will be disclosed through stock exchange filings in line with SEBI's Listing Obligations and Disclosure Requirements (LODR).
On its sustainability roadmap, Hindalco reported having 470 MW of renewable energy capacity across solar, wind and hydro projects, along with 35 MW of pumped storage tie-ups. According to CNBC TV18, the company expects to add another 414 MW of solar and wind capacity and 90 MW of pumped storage during the current financial year, taking its renewable portfolio to 884 MW by the end of FY27.
Management indicated that downstream aluminium volumes are expected to recover in the September quarter after a softer Q1. As reported by CNBC TV18, downstream aluminium EBITDA reached $300 per tonne in the June quarter — a multi-quarter high — while the company expects a more sustainable level of around $250 per tonne in the near term. Over the longer term, EBITDA is expected to exceed $300 per tonne as the Aditya FRP plant ramps up.
The company reiterated that Novelis' long-term EBITDA guidance remains unchanged at $600 per tonne, supported by an accelerated structural cost reduction programme of $350-$400 million by the end of FY28. According to CNBC TV18, captive coal production from the Chakla mine is expected to reach around 1 million tonnes in FY28, while the Banda mine is expected to contribute about 0.5 million tonnes from the middle of the year, supporting raw material availability and costs for the aluminium business.
