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KOLKATA, April 30

INDIAN Aluminium Company Ltd - Indal, an Aditya Birla group company, has decided to give emphasis to value addition through enriched product-mix to cater to specific applications and reduce dependency on the cyclical nature of commodity prices.

This strategy is to be followed in the wake of growing uncertainties adversely impacting global market sentiments. It is stated that a lower metal surplus reported in global stocks reflects the higher projected demand for aluminium in China while the US and Europe have reported a slackening of primary aluminium demand.

Indal sources have it that the present LME price for aluminium ranging between $1,340 and $1,370 per tonne is expected to firm over the second half of 2003, averaging at around $1,400 per tonne. Alumina prices, on the contrary, continue to reflect an upward trend with the expected surge in demand coming from China and are expected to range between $180 and $200 per tonne during the year.

Growth of aluminium consumption in the country remained at four per cent during 2002-03. Keeping in view the slow growth trend of the past years, a modest market expansion of three to four per cent is projected for the end use segments served by aluminium sheet, foil and extrusion.

Against the above global and domestic market scenario, Indal's focus will be on achieving optimum cost effectiveness, upgrades in quality and a stronger surge in exports, including reaching new markets and consolidating position in existing regions. In fact, the Indal management has decided to tap new markets such as the US, Europe, China and a continued focus on export markets around the Indian Ocean Rim.

Indal's exports during the accounting year ended March,2003 increased by 12 per cent to about Rs 39 crore as against about Rs 34 crore last year. Export initiatives were initiated into new markets across West Asia and Mid-Eastern China and Europe with speciality alumina.

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