Nalco alumina powder exports dip 10% in 2003-04

State-owned National Aluminum Company's (Nalco) alumina powder exports have fallen 10 per cent during the just ended fiscal when compared to the preceding year.

Nalco has been exporting alumina powder from Visakhapatnam port for which it had created storage and loading facilities with huge investments. Two years back, Nalco had spent around Rs 40 crore to expand its export facilities at the Visakhapatnam port.

"Nalco is at present concentrating on value-added products. Alumina powder exports get the company only around $250 per tonne. If the company converts it to alumina ingots and exports it can get around $1,500 per tonne in the international market," M Venkatapathi, general manager of Nalco (Vizag Operations), told Business Standard.

"Keeping this in mind, we have been increasing our alumina ingots production capacity because of which our alumina powder exports have dropped. To produce one tonne of alumina ingots we need two tonne of alumina powder and around 15,000 units of power, even though the company gets more margins in alumina ingots exports than powder exports," he said.

During 2003-04, Nalco has exported 9.4 lakh tonne of alumina powder as compared with 10.37 lakh tonne in the previous year, thus registering a 10 per cent fall in exports. Nalco is planning to increase its alumina powder production capacity at its Damanjodi plant in Orissa by another 4-5 lakh tonne.

"Once this happens our powder exports will also increase significantly. Keeping this in mind Nalco is planning to expand its alumina powder storage capacity at Vizag port from the existing 75,000 tonne to one lakh tonne in the next two years," he disclosed.