Hindalco Industries yesterday said sales in the first four months of the current year were up 26 per cent over the corresponding period last year.
Speaking at the companys annual general meeting here, Hindalco chairman, Kumar Mangalam Birla, said production of aluminium had gone up by 21 per cent. Meanwhile, Rajashree Birla, late Aditya Vikram Birlas wife, has been inducted on the Hindalco Industries board. She had been appointed as a director in place of her late husband.
The shareholders passed a resolution for increasing the limit for inter-corporate deposits to 50 per cent of the subscribed capital and free reserves. Also, the foreign investment limit has been raised to 24 per cent of the paid up equity capital of the company.
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"With our well defined business strategy, the completion of the on-going capital expenditure programme and the utilisation of enhanced capacities and facilities, the outlook for the future is exceedingly bright, Birla said.
He said the 1996-97 results were affected by prices at the London Metal Exchange (LME) and accumulation of inventory. However, demand for aluminium is growing in the domestic market and the Asian region, he added.
The company significantly expanded capacities during 1996-97 and almost all expansion will be completed by 1997-98, he said. Alumina capacity is being increased to 2,42,000 tonnes per annum (tpa) and the additional capacity is expected to be commissioned by March 98.
Installed capacity at the recently upgraded bliss hot and cold rolled mills is at present 80,000 tpa.
The aluminium foil project, coming up at Silvassa, is scheduled to be commissioned in the latter half of this year, Birla informed.
Besides, the company is exploring the feasibility of setting up an integrated aluminium complex in Orissa. The project, to be called Aditya Aluminium, will be a division of Hindalco.
As a step in this direction, an MoU has been signed with the Orissa Mining Corporation for the transfer of two bauxite deposits.Hindalco is shifting the composition of its exports to value-added products, Birla added. The company is considering manufacture of aluminium alloy wheels, aluminium cans and hi-tech aluminium castings.
Hindalco signed a technology transfer agreement with Stahlschmidt & Maiworm GmbH of Germany on June 27 for the manufacture of low pressure die cast aluminium alloy wheels, he said. Other proposals are being evaluated by the company.
The company is making a capital outlay of Rs 550 crore for 1997-98. A Rs 85 crore capital expenditure is estimated next year, he added. For funding its long-term capital requirements, Hindalco is looking at finance from the international markets.
Efforts are on for obtaining credit rating from two reputed international agencies, Birla added.
The company is availing of a $12-million Euro loan for funding its Renusagar power division expansion. The banks in the consortium are the ABN-Amro bank, the Banque Francaise DU Commerce Exterieur, Singapore, the Development Bank of Singapore and the Sakura Bank, with a commitment of $3,00,000 each.
The company is also availing of a $48-million Euro loan from the Bank of America and its affiliates.
Meanwhile, Hindalco has privately placed Rs 100 crore worth 17.5 per cent non-convertible debentures with UTI.
Capacity at the Renusagar power generation plant has been expanded to 575mw. Power interruptions had caused a production loss of 9,000 tonnes at the aluminium smelter, Birla said. The company building captive power facilities to meet its entire power needs.
A 75mw power unit was shut down yesterday due to a technical snag but production was unaffected, said A K Agarwala, president and manager, Hindalco. The unit is expected to be recommissioned within four weeks, he added.
The 1:2 bonus issue in October 96 had increased the share capital from Rs 49.64 crore to Rs 74.46 crore and a 45 per cent dividend has been declared on the expanded share capital.
A 75mw power unit was shut down yesterday due to a technical snag but production was unaffected, said A K Agarwala, president and manager, Hindalco