 "Nalco")
Beating the slump in world aluminium market, National Aluminium Company (Nalco) is eyeing 10% growth in bauxite production by the close of this financial year.
“By the end of 2015-16, the (bauxite) production is likely to be at the level of 6.3 million tonne (mt), a growth of 10%. Similarly, in production of alumina hydrate, there is likely to be a growth of 2.6%, in aluminium 14% and net power 14% by the end of this financial year. In profitability, Nalco has registered 39% growth in profit after tax in Q2 over Q1”, Nalco Chairman and Managing Director T K Chand said in his Republic Day address to company employees.
Chand admitted that Nalco’s profitability in this fiscal remained depressed due to continuous downturn. “But, Nalco is determined to make a difference with other industry peers by remaining afloat with profitability and augmenting production by declaring the last quarter as production months. While productivity and profitability are in focus, we should not lose sight of cost saving measures”, he added.
By the end of December last year, Nalco’s cumulative bauxite production reached 4.5 mt, marking a growth of 6.27% over the corresponding period of last financial year.
Commenting on global aluminium business scenario, Chand said, “Global aluminium production has out-passed consumption by 2.6%, making a surplus of roughly 1.4 mt in 2015. Slowdown in consumption in China has resulted in dumping of surplus production of that country in international market, making a steep fall in metal prices. At present, aluminium prices are moving in a narrow band of around $1,500 per tonne, much below the cost of production of primary producers. Around 70% of companies in the world have reported cash loss. Many smelters have been closed and many more are resorting to production cut.”
In India, aluminium consumption has rose 6% on the back of increase in demand in electric and electronics sectors. However, rising imports worried domestic producers as the share of imports to domestic consumption has touched an alarming 56%.
In a diversification mode, Nalco is developing a new corporate plan with a new business model that will withstand market onslaughts and keep the company afloat with profitability. The new business model strengthens aluminium business by reducing the cost with increase in volume of production through modernisation and brownfield (old) expansion and upstream & downstream integration, said Chand.
