Nalco to enter metal, energy sectors

KOLKATA: National Aluminium, or Nalco, has targeted a turnover of Rs 25,000 crore by 2020 as part of a new corporate plan that will include venturing into new businesses and power plants.

It is also finalising plans to transform itself from an ‘aluminium producer’ to a metals producer and energy provider.

Outlining the company’s future growth strategy, Nalco chairman AK Srivastava said the company will build at least two diversified projects by 2016 and target at least one 1,000 mw independent power producer by 2016.

In the metals business, Nalco has set a target of producing 1.7 mt of aluminium and 4 mt of alumina by 2020. It has completed the second phase of expansion at Rs 7,800 crore raising alumina capacity to 2.1 mt, aluminium capacity to 4.6 lakh tonne and power capacity to 1,200 mw.

Nalco is ready with its third phase of expansion and plans to spend Rs 6,000 crore to enhance alumina capacity to 2.9 mt and metal capacity to 5.7 lakh tonne. It will also expand power generation to 1700 mw.

“Given the favourable environment for aluminium in the global market, which is expected to grow around 5% annually during the next decade, Nalco will get into a strategic position,” said Mr Srivastava at the company’s 20th AGM.

Launching new projects in energy and metal sectors will also put Nalco in the big league, Mr Srivastava added.
Nalco has formed Nalco Foundation, to act as a catalyst for the socio-economic development of communities living in the periphery of mines and plants.

Registered under the Indian Trust Act, the Nalco board has decided to contribute 1% of the company’s net profit every year in addition to 1% of net profit, being spent through the company’s existing Rehabilitation & Periphery Development Advisory Committee.