Captains Speak

Published: Dec 29, 2021
Updated: Dec 29, 2021

National Aluminium Company

Our Future Is In Greenfield Expansion

“National Aluminium Company (NALCO), a PSU, has chalked out a highly ambitious road map for multi-fold growth in its topline as well as bottomline by the year 2032,” maintains Sridhar Patra, Chairman and Managing Director of the company. He adds, “In order to achieve this objective, the company will embark upon an extensive programme of greenfield expansion projects, which includes the ongoing 5th stream refinery project of one mtpa capacity in the existing alumina refinery at Damanjodi, development of the Pottangi bauxite mines and the Utkal D&E coal mines in Odisha, and establishing 5 lakh tpa brownfield smelters along with a 1,400 MW captive power plant in Odisha.” Its capital work-inprogress as of the year ended March 2021 has been Rs 1,431 crore vis-à-vis Rs 1,177 crore in the previous year. As part of backward integration, the company is establishing a caustic soda plant in a JV with Gujarat Alkalies & Chemicals (GACL) in Gujarat and a CT pitch plant in a JV with NINL in Odisha. Besides, the company has also formed a JV company with MIDHANI, named Utkarsha Aluminium Dhatu Nigam Ltd (UADNL), to make high-end aluminium alloy to meet the requirements of the defence and aerospace sector. Likewise, in order to acquire strategic assets overseas for captive purposes, the company has formed a JV company named Khanij Bidesh India Ltd (KABIL) with HCL and MECL.

NALCO is a group ‘A’ CPSE, having integrated and diversified operations in mining, metal and power. Presently the government of India holds a 51.28% equity capital in the company, which has the the distinction of earning a continuous profit for the last 34 years. Reviewing the performance of the company during fiscal 2021, Mr Patra says the company achieved its highest-ever production of bauxite at 73.65 lakh tonnes. Similarly, the highest-ever export of 1.92 lakh tonnes of aluminium metal was also achieved, surpassing the decadeold record of 1.46 lakh tonnes of 2009-10. In addition, the company also achieved production of 20.85 lakh tonnes of alumina hydrate and 4.18 lakh tonnes of aluminium metal. According to him, “the performance during the year is impressive, with the net revenue amounting to Rs 8,869.29 crore (previous year Rs 8,425.75 crore) and the net profit shooting up to Rs 1,299.56 crore from Rs 138.23 crore in the previous year, registering a nine- fold increase. This marvellous show is being attributed to strong operational performance by units, effective sales strategy and cost- saving measures supported by favourable LME prices.”

TEAMWORK PAID OFF

Giving credit for this success to the teamwork and dedication of the employees, Mr Patra adds, “The company had made exemplary contributions in promoting and putting a focus on plants, production, productivity and people.” On the business outlook, Mr Patra says,”We witnessed a significant recovery in the second half of financial year 2020-21. With further easing of restrictions and resumption of economic activities, we are optimistic of robust growth in the long run with our focus on increasing production in the mining and refining segments and opening up of the new coal blocks.”

According to him, NALCO has one of the largest integrated bauxite-alumina-aluminium-power complexes in the country. The company has a 68.25 lakh tpa bauxite mine, a 21-lakh tpa alumina refinery, a 4.60 lakh tpa aluminium smelter and a 1,200 MW captive power plant. In order to harness renewable energy, the company has already commissioned 198 MW wind power plants and more 25 MW wind power plants are in the pipeline. “Globally, the company has achieved the distinction of being the lowest cost producer of bauxite and alumina in the world, as per the latest report of Wood Mackenzie,” informs Mr Patra. Pointing out that “strategic risks taken this year have paid off for the company,” Mr Patra adds that “in this fiscal year, we expect that demand will be more than production because when industries restart, they will be requiring more metal. In anticipation of that, traders are likely to stock an adequate quantum for the entire supply chain. Due to this, demand is likely to be slightly more than supply.”

The company has also commissioned a first-of-its-kind de-fluoridation process based on nano-technology to decontaminate the effluent water of the smelter, solving a longstanding fluoride contamination problem of the area.