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Hindalco Industries, an Aditya Birla Group company, has reduced its growth capital expenditure to $4.5 billion over the next five years, down from $8 billion announced a year ago. This is most likely the first such decision by a major Indian firm in terms of foreign capex. Hindalco's management told an investors' conference that margin pressures at Novelis, its US subsidiary, were temporary and that growth projects had been delayed but not cancelled. We see the reduction in growth capex as a sign of low confidence in operating cash flows, according to a report by Kotak Institutional Securities. Hindalco said it would spend $3.3 billion on Novelis over the next five years, focusing on greenfield rolling capacity, removing bottlenecks, and establishing recycling units. According to company officials, the investments will be based on cash flows rather than new debt. The majority of the overseas capex will go towards a $2.5 billion greenfield mill in the United States, which is currently under construction. Hindalco has also decided to postpone its cold mill and cold-looped recycling investment in China until demand recovers. Novelis has deferred $1.6 billion worth of projects that include rolling capacity in Brazil, Europe, and downstream capacity in China. In India, Hindalco remains focused on downstream aluminium capacities with an investment plan of $2.32 billion, the firm said. Projects under execution are worth $1.13 billion, while some upstream capacity has been deferred for the time being. Also Read Maharashtra government to buy Air India's building for Rs 1,600 crore CAG's higher land premium proposal ignored by Ahmedabad civic body