Malco in Rs 300cr expansion mode

The Madras Aluminium Company Limited, a Vedanta Group company, is embarking on a Rs 300-crore expansion and modernisation plan at Methur Dam in Salem district of Tamil Nadu, said chief executive officer and whole-time director of the company, Suresh Rathi.

Speaking to Business Standard, Rathi said the expansion and modernisation would comprise three components. "The company would add a power generation unit with a 25Mw capacity to the existing 3x25Mw power plant at the Malco complex. The new pant would commence power generation by this December," he added.

Rathi said as part of the second component, Malco, which has a vertically-integrated plant with its own captive bauxite mines, refinery and smelter, would enhance the alumina production capacity to 120,000 tonne, from the present 85,000 tonne a year. This expansion will crystallise by early next fiscal.

"Besides, the company will step up the metal production capacity to 65,000 tonne a year, from the existing 40,000 tonne, within the next 10 months," he said.

Malco, established in 1965, is the only integrated primary aluminium metal complex in south India. To augment the expansion, the company has already identified new mines in the captive area of Kiolli, Yercaud and Poondi Hills in Tamil Nadu to excavate more bauxite deposits.

Of the 3,300 metric tonne of wire rods that Malco manufactures in a month, about 500 tonne are exported to countries like Canada, Sri Lanka and West Asia. Currently, wire rods comprise more than 95 per cent of the company's production. Malco enjoys an almost 65 per cent share in the domestic market.

The company, whose corporate financial year was altered from July-June to April-March), registered a Rs 535-crore turnover during the nine-month period beginning July 2006-March 31, 2007. It expects to close the current financial year with Rs 500 crore.