The company will produce cans for beverages and food giants Coca-Cola and Pepsi from its plant at Hirakud. As part of the plan, the company has begun dismantling Novelis’ closed plant in Rogerstone, UK, and will ship all key equipment to Hirakud.

The expansion for beverage can-making is scheduled to be complete by October next year. Canada-based Novelis was acquired by Hindalco for $6bn in 2007. It had announced the closure of the Rogerstone plant in March 2009, following the economic downturn and a demand crash.

It said the move to transfer the Rogerstone plant to India is intended to make the group’s beverages can production more cost-effective. With the relocation, the company said it could cut costs by at least 20-30%.

However, shipping of the end products back to Europe and the USA would be costly. Hindalco would be using the plant and technology of Novelis to make cans’ body stock in India for the first time.