Alufluoride plans expansion

Vizag-based Alufluoride Limited is planning to diversify and go in for an expansion from next fiscal. The company also hopes to clear all its debts by this year-end.

"By the end of this year, Alufluoride will become a debt-free company and from next fiscal onwards, we would able to give dividends to our shareholders. At the same time, we are planning to diversify into activities like producing other chemicals besides expanding the existing unit," V S Prasad, managing director of Alufluoride Limited, told Business Standard.

Currently, Alufluoride produces aluminium fluoride, which is used in aluminium smelters. The company procures its main raw material "�floro silisis acid "� from Coromandel Fertilisers. The company exports about Rs 4-5 crore worth of aluminium fluoride to Dubai, South Korea, China, Egypt, Iran and few other countries every year.

"There is a lot of demand for our products in the domestic and international markets. But due to the shortage of raw material from Coromandel Fertilisers, we are unable to meet the demand. Keeping this in mind, we are procuring raw materials from Sterlite unit located at Tuticorin," he said.

The company took about Rs 11 crore loans from ICICI and IDBI banks some six years back and has so far repaid about Rs 20 crore with interest. Besides, the company owes Rs 65 lakh to financial institutions.

In 2004-05, Alufluoride clocked a turnover of Rs 13 crore. In the current year, the company is expecting to achieve a turnover of about Rs 17 crore including about Rs 5 crore from exports.

The company restricted the production of aluminium fluoride to only 4,000 tonnes during last fiscal despite having an installed capacity of 6,000 tonnes. This was due to the shortage of raw material during last fiscal, Prasad said, adding that they realised about Rs 33,000 per tonne.

"We are mobilising raw material from other places too due to which we are expecting 4,500 tonnes of aluminium fluoride production. Apart from this, we have signed contracts with buyers for getting Rs 36,000 per tonne of aluminium fluoride during the current year. This will help us earn good margins," he said.