Comments
National Aluminium Company Ltd (NALCO), a Navratna CPSE, will invest ₹30,000 crore for its expansion and diversification plans in the next six to seven years, Pralhad Joshi, Union Minister of Coal & Mines and Parliamentary Affairs, said on Thursday.
Addressing the 41st Foundation Day event of NALCO in Bhubaneswar, Joshi also said that the company’s aggressive expansion plan will have a multiplier effect on the mining and mineral sector, helping achieve the vision of Atmanirbhar Bharat.
Joshi also said some of the proposed expansion and diversification plans could come in the form of joint ventures. Plans are afoot to soon announce some greenfield projects too and consultations are on with the State government for this purpose, he added.
Also read: Metal stocks surge as steel producers hike prices again on buoyant demand
He highlighted that NALCO has matured in the business cycle and now exponential growth and expansion should be in the pipeline to take the company to the next level of business excellence.
The Minister said that NALCO had almost tripled its production capacity and is now a global player in the entire value chain of aluminium making.
Sailing against the wind
Joshi
noted that when demand and prices were subdued in the first half of the current fiscal with aluminium prices hovering around $1,400-1,500 per tonne and alumina prices going as low as $230, NALCO recorded profit in the first quarter, which improved in the second quarter.
He expressed confidence that third quarter bottomline performance would be better than the earlier two quarters.
If this trend continued, then NALCO would bounce back by the end of this financial year and regain its pre-eminent position of being the industry leader after facing some challenges resulting from Covid-19 and the slump in metal prices in the first half this fiscal, Joshi added.
The Minister underscored the need to increase the per capita aluminium consumption in the country, stating that the Indian level of 2.8 kilogram was much lower than the global average of 12 kg.
“This is the right time for industry to increase capacity and leverage this opportunity. We also need to ramp up the recycling capacity,” he added.
The annual consumption of aluminium is expected to grow manifold with demand picking up through several initiatives under Atmanirbhar Bharat, Joshi said.
Two major steps
Joshi
said that the government had taken two major steps for aluminium sector. It has introduced a non-ferrous metal import monitoring system initially for aluminum and copper. This will assist the aluminium industry to plan pricing and production strategy by providing advance and accurate information on quality of material being imported, he said. Joshi also said that a metal recycling framework has been finalised to address the issues around aluminium scrap recycling, etc.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.