India Expected to Potentially End Refined Copper Import Dependence This Year: Hindalco Executive

India Poised to End Refined Copper Imports by Year-End

India's dependence on imported refined copper, a critical commodity flagged by policymakers as a strategic concern, could come to an end as early as this year. According to Hindalco Industries managing director Satish Pai, new domestic smelting capacity and expansion projects are narrowing the supply gap. This shift is driven by multiple developments, including the commissioning of a new copper smelter by the Adani Group in Gujarat, which is expected to significantly boost domestic production.

Hindalco is also ramping up its capabilities, including a 50,000-tonne copper recycling plant and a copper pipe smelter project. While Hindalco's copper sales stood at 487,000 tonnes in FY26, down from 491,000 tonnes a year earlier, the company's copper sales are expected to increase with the new smelting capacity coming online. Adani's Kutch Copper reported sales of 113,600 tonnes in FY25 against an installed capacity of 500,000 tonnes.

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The country's copper sector has been structurally dependent on imports since the closure of smelter operations at Vedanta-owned Sterlite Copper plant in Tuticorin in 2018. Since then, rising demand from sectors such as power, infrastructure, electric vehicles, and renewable energy has further widened the gap between domestic supply and consumption. India's refined copper consumption is currently estimated at around 1.7 million tonnes (mnt), while effective domestic refined copper production capacity from major primary producers stands at nearly 1.2 mnt.

Big Mint, a commodities market intelligence firm, estimates that refined copper imports will continue in the near term until Kutch Copper stabilizes and ramps up utilization of its 0.5 mnt capacity smelter. Even with upcoming smelting expansions, concentrate imports are unlikely to decline materially, given India's growing copper demand and limited captive mining resources.

To mitigate this risk, Hindalco has locked in long-term contracts for copper concentrate, with about 85% of its requirements tied up under five-year agreements, ensuring supply stability. The company has also begun exploration activities in India, with early signs indicating promising reserves. By the end of the five-year period, Hindalco hopes to meet at least 20-25% of its requirements domestically, up from the current 10% based on the copper mines of Hindustan Copper.

India's copper concentrate imports rose to 1.18 million tonnes in FY25 from 1.02 million tonnes in FY24, according to Big Mint. In FY26, Hindalco's copper earnings before interest, taxes, depreciation, and amortisation (Ebitda) stood at ₹2,809 crore, down from ₹3,025 crore in FY25. About 25% of Hindalco's revenue from operations came from its copper business.

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