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Alicon Castalloy to Set Up New Facility with ₹1.26 Billion Outlay

Ashik Bothra - Mumbai Bureau Published Jul 31, 2026, 05:25 AM Updated Sep 18, 2026, 05:08 AM

Auto components and light alloy casting manufacturer Alicon Castalloy Limited (NSE: ALICON) announced a strategic capital expenditure plan of ₹1.26 billion (₹126 crore) to construct a greenfield manufacturing plant. The upcoming facility will specialize in Gravity Die Casting (GDC), Low Pressure Die Casting (LPDC), and precision machining to serve electric vehicle (EV), hybrid, and traditional internal combustion engine (ICE) original equipment manufacturers (OEMs).

PUNE, India — Auto component manufacturer Alicon Castalloy Limited (NSE: ALICON | BSE: 531147) announced on July 31, 2026, that its Board of Directors has approved a major capital outlay of ₹1.26 billion (₹126 crore) to establish a new manufacturing plant. The upcoming facility will integrate Gravity Die Casting (GDC), Low Pressure Die Casting (LPDC), and high-precision CNC machining lines.

The investment strategy, disclosed in statutory compliance filings submitted to Indian equity exchanges, aims to fulfill rising multi-year order volumes from global and domestic automotive original equipment manufacturers (OEMs) across internal combustion engines (ICE), hybrid platforms, and electric vehicles (EVs).

Technical Scope and Manufacturing Infrastructure

The new plant is designed to expand Alicon Castalloy’s light alloy casting capabilities, addressing complex structural component requirements for modern mobility platforms.

According to regulatory filings, key technical specifications and operational highlights of the planned facility include:

Total Capital Outlay: ₹1.26 billion (₹126 crore) funded through a balanced combination of internal accruals and bank debt.
Casting Technologies: Integration of Gravity Die Casting (GDC) and Low Pressure Die Casting (LPDC) technology arrays.
Downstream Integration: Fully automated multi-axis CNC machining, heat treatment, and quality testing lines.
Product Applications: Production of structural battery enclosures, motor housings, cylinder heads, and lightweight chassis components.

The facility will incorporate energy-efficient melting furnaces and automated robotic pouring systems to reduce operational carbon intensity while improving production yields.

Market Positioning and Strategic Context

Alicon Castalloy is among India's primary producers of aluminum alloy castings, operating existing manufacturing units in Shikrapur (Pune), Chinchwad (Pune), Binola (Haryana), and European facilities in Slovakia.

The ₹1.26 billion investment comes as global automakers focus on vehicle lightweighting to extend EV battery range and comply with stringent emissions regulations. By expanding its LPDC and GDC capacity, Alicon aligns its production mix with high-margin structural components that command higher content-per-vehicle metrics.

Impact on Automotive Supply Chains, Local Economy, and Investors

The expansion yields several structural benefits across automotive and financial stakeholders:

For Automotive OEMs: Secures reliable domestic capacity for complex aluminum castings, mitigating reliance on imported structural components.
For Regional Employment: The greenfield facility is expected to generate direct technical jobs and indirect employment across regional tooling and logistics supply networks in Maharashtra.
For Investors: Expands long-term revenue capacity and supports operating margin growth as new machining lines transition toward full commercial production.

Official Sources Section

Capital expenditure metrics, product details, and regulatory filings referenced in this report were verified through official disclosures from:

Statutory filings on the National Stock Exchange of India (NSE).
Corporate announcements portal of BSE Limited.
Investor relations portal of Alicon Castalloy Limited.

Quote Section

"According to official regulatory filings submitted to stock exchanges, Alicon Castalloy Limited approved a capital outlay of ₹1.26 billion to establish a state-of-the-art manufacturing plant dedicated to GDC, LPDC, and advanced machining technologies to meet growing global automotive demand."

Why It Matters

As global and Indian automotive manufacturers accelerate EV adoption and vehicle lightweighting, demand for high-integrity aluminum castings is rising sharply. Alicon Castalloy's ₹1.26 billion plant investment establishes the technical infrastructure needed to secure multi-year OEM supply contracts, supporting India's position in advanced automotive engineering.

Key Facts at a Glance

Investment Amount: ₹1.26 billion (₹126 crore).
Key Technologies: Gravity Die Casting (GDC), Low Pressure Die Casting (LPDC), and CNC machining.
Primary Target Sectors: Electric Vehicles (EVs), Hybrids, and ICE automotive platforms.
Company: Alicon Castalloy Limited (NSE: ALICON | BSE: 531147).

Frequently Asked Questions (FAQs)

What technologies will be deployed in Alicon Castalloy's new plant?

The new plant will feature Gravity Die Casting (GDC), Low Pressure Die Casting (LPDC), and advanced CNC machining operations for precision finishing.

What is the total cost of the project?

The Board of Directors approved a total capital outlay of ₹1.26 billion (₹126 crore) for the greenfield facility.

Which industries will the new plant serve?

The plant will primarily serve domestic and global automotive OEMs producing electric vehicles, hybrid platforms, and traditional internal combustion engine models.