Sterlite lines up $2bn expansion plan to service exports needs

Post listing on the London Stock Exchange, the Anil Agarwal-promoted Sterlite Industries is planning a major export push.

The major part of the capacity that it is planning to add at an investment of around $2 billion will cater to the export market.

Sterlite has lined up expansion programmes for its copper division and Bharat Aluminium Company (Balco). Further, it is planning to set up a 1.4 million tonne alumina refining unit in Orissa.

Sterlite is looking at exporting the entire additional production of 1.2 lakh tonne per annum at its copper division.

A senior executive with Sterlite Industries told Business Standard, "Since the global demand for non-ferrous metals is on the rise, we are looking at exporting most of the production that will result out of the capacity expansions along with the existing exports."

At present, Sterlite exports about 60,000 tonne of copper out of its total production of 1.8 lakh tonne per annum. The capacity expansion at its copper division will be completed by March next year.

The company is planning to add 2.5 lakh tonne capacity at Balco of which 2.25 lakh tonne will cater to the export market.

"With China pulling the global aluminium demand, India with its rich bauxite reserves is in a favorable position to supply to the international markets. Therefore, we would also like to focus on our exports front in future," the executive added.

The existing 1 lakh tonne capacity at Balco's Korba smelter will stand enhanced to 3.5 lakh tonne by March 2006.