Nalco plans stockyard at Baddi, to explore JV with foreign firms

India's leading producer and exporter of aluminium, National Aluminium Company Ltd (Nalco) is working on joint-venture agreements with overseas-based aluminium manufacturers, as part of its business development strategy.

Speaking to Business Standard, CR Pradhan, chairman -cum-managing director, Nalco, said the company was planning to start a facility for converting alumina to aluminium, in either Dubai, Bahrain, or Oman""cheap power, gas facilities, and infrastructure being the prime reasons for setting up a plant there.

"Till now, no MoU has been signed, but we are getting positive indication from the government heads of these countries and a consultancy company has been asked to prepare a feasibility report," said Pradhan.

Commenting on fluctuations in aluminium prices, Pradhan said it would take 3-4 months for metal price to stabilise in the domestic market.

Meanwhile, Nalco has opened a stockyard of primary aluminium products at Baddi in Himachal Pradesh. The stockyard at Baddi is expected to boost Nalco's presence in the northern region and add to the domestic market share of the company in primary metal.

Nalco is already operating stockyards in Jaipur, Kolkata, Vizag, Bangalore, Bhiwandi, Faridabad, and Silvasa.

Pradhan said the electrical and electronics industry was a major consumer of aluminium in the Punjab, and Himachal Pradesh belt, followed by the infrastructure industry .

He further added, "We are trying to address the automobile and power sectors, which are important sectors in the Indian economy . The stockyards will enable us to bring stock to customers at a short notice."

Nalco has adopted a number of initiatives to add value to its customer relationships. Offering loyalty discounts to its regular customers, the company has signed a memorandum of understanding (MoU) with them to ensure smooth supply of metal.

Dispatch information is being made available to customers via e-mails, with plans to go for online interactions with the customers in due course.

"Through the fast-cash system of State Bank of India (SBI) branches, local cheques of customers are quickly honoured leading to faster dispatch of metal. Besides, bank charges on bill discounting against letters of credit have been brought down from 8.5 per cent to 6.5 per cent, a benefit, which is passed on to the customers", Nalco officials said.