In a statement, Hindalco cited a number of factors that have contributed to the decision to reduce capex, including the impact of the COVID-19 pandemic on the global economy, rising commodity prices, and supply chain disruptions.
The company has also noted that the uncertainty surrounding the global economic outlook and the ongoing geopolitical tensions have made it difficult to plan for the future and invest in long-term projects.
Source:- The Hindu
Despite the challenges, Hindalco remains committed to investing in strategic areas that will help it to remain competitive in the global market. The company has identified a number of key priorities, including increasing its production capacity, enhancing its operational efficiency, and investing in sustainable technologies.
Hindalco has also emphasized the importance of maintaining a strong balance sheet and has announced plans to reduce its debt levels and improve its cash flow. The company has said that it will be focusing on optimizing its operations and maximizing its returns on investment in order to achieve these goals.
Source: Path Finder
The recalibration of Hindalco’s capex plans is a reflection of the broader challenges facing the Indian economy in the wake of the COVID-19 pandemic. With supply chain disruptions, rising commodity prices, and geopolitical tensions continuing to create uncertainty, many companies are finding it difficult to plan for the future and make long-term investments.
However, Hindalco’s decision to focus on strategic areas and maintain a strong balance sheet is likely to help it weather the current challenges and emerge as a strong player in the global aluminum market.
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