NEW DELHI, India, - India's leading private aluminum producer, Hindalco Ltd., will double the production capacity of its aluminum foil plant by December 1999 in an effort to capture the growing domestic foil market.

Hindalco's foil plant at Silvasa in Western India has an installed capacity of 5,000 tonnes per year and began operation in February.

Hindalco president Askaran Agarwala said the company will invest an additional $10 million to increase the foil plant's capacity to 10,000 tonnes per year.

He said Hindalco will sell 70 percent of the output in the domestic market, while 30 percent is made for exports.

Hindalco executives said the company is continuing to pursue the acquisition of Hyderabad-based primary aluminum producer Pennar Aluminium Co., which has asset value worth $75 million (AMM, May 11).

Hindalco, headquartered at Mumbai, is India's largest private producer of aluminum with installed capacity to manufacture 210,000 tonnes per annum of aluminum and 350,000 tonnes per annum of alumina. Hindalco also produces value-added aluminum sheets, extrusions and rods.

The company is planning investments of about $475 million dollars to increase capacities of alumina and aluminium plants and value-added units.