Hindalco, a subsidiary of India's Hindalco, plans to manufacture solar modules.

Hindalco Industries, a company based in India, plans to manufacture solar modules and establish a factory in Gujarat's western state. Two people with knowledge of the matter confirmed this on Tuesday.

One of the sources stated that the company, which is owned by the cement to fashion retail conglomerate Aditya Birla Group, is evaluating its five-year plan for the competitive sector.

The second person stated that Hindalco had identified land in the port town Mundra, Gujarat.

Both sources claim that Hindalco Industries India, the second largest aluminium producer in India, has not yet finalised its capital expenditure plan and board approval.

They declined to name the people as they weren't authorized to speak with media.

One source said that Hindalco’s dominance of aluminium production will make solar modules a natural fit.

Hindalco didn't immediately respond to an inquiry for comment.

This would be the first time that the company has attempted to manufacture green energy components. The company signed a 2022 collaboration with Greenko Group for the production of solar and wind power capacity at its smelter.

Solar module production is already a major industry in India.

Reliance Industries, a conglomerate that produces oil-to-chemicals, plans to begin making solar panels later this year in its giga plant in Jamnagar (Gujarat), while Tata Power already produces solar cells and modules at its plants.

India is increasing its renewable energy capacity. It aims to reach 500 gigawatts by 2030. Reporting by Sethuraman NR from Gujarat and Neha arora from New Delhi. Editing by Tomasz janowski.

(source: Reuters)