Aditya Birla Group has been working out plans to increase its shareholdings in leading aluminium producer, Hindalco Industry. Kumar Mangalam Birla, the Chairman of group, addressing the annual general meet, said that shares would be purchased from the open market. However, he refused to divulge details pertaining to quantum of shares the firm wishes to purchase and the time-frame to carry out the transaction.

About Canadian subsidiary Novelis, Mr. Birla said that the worst has been over and increasing demand in Asian region is sufficient to get the firm out of trouble. Novelis, that suffered a loss of Rs 8,769-crore loss in the last fiscal, is expected to make an operational profit of about Rs 5,000 crore from fiscal 2012-13 onwards.

Mr. Birla announced a cost-reduction plan of about $140 million at Novelis, for turning the firm into a profit-making body. Hindalco will invest Rs 10,458 crore in Greenfield projects in the next fiscal, while a capital expenditure of Rs 5,623 crore in the current financial year is also on anvil.

The firm aims to produce 350,000 tonnes of copper in the current fiscal, expecting an increase in demand from the power industry. Hindalco would also raise $500 million in a QIP or by other routes for meeting its financial requirements.