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24 DECEMBER 2020 AL CIRCLE

Aluminium price in India to see positive improvement by Q1 FY2021-22: Sridhar Patra, Nalco's Chairman & MD

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

In a recent interview, National Aluminium Company’s (NALCO) Chairman & Managing Director, Sridhar Patra, revealed his optimistic views saying that production activities are recommencing gradually and so the demand for aluminium has begun to rise in both international and Indian market, following a disappointing period of time in FY2020-21 due to the COVID19 pandemic. In April, the average aluminium price stood the lowest in last ten years at INR 1,421 per tonne, but improved a bit in Q1FY21 and even more in Q2 to reach around INR 2,000 per tonne towards the third quarter of the year. Going ahead, Mr Patra sees more positive improvements in prices by the first quarter of FY2022.

Aluminium prices in India to see positive improvements by Q1 FY2021-22: Sridhar Patra, Nalco Chairman & MD

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Talking about Utkarsha Aluminum Dhatu Nigam Ltd, a JV between NALCO & MIDHANI to produce high-end aluminium alloy, Sridhar Patra explained it as a move towards India’s Aatmanirbhar initiative. Land acquisition and boundary wall construction are completed by now, while environment clearance and several other pre-operating activities are in process. He said the project might complete before the scheduled time of the next three years. Mr Patra expects this plant to increase NALCO’s profits with its 60,000 tonnes of high-end metal aluminium-based alloys production.

When asked about the plans for forming other JVs and partnerships to follow the government’s vision of Aatmanirbhar Bharat, Mr Patra said that NALCO could form a JV with MCL for a 0.5 million tonnes smelter and 1,200-1,300 MW power project. He hopes the number of JVs and independent projects will bring huge investment in the CapEX, increasing NALCO’s profit base to 30-50 per cent.

In regards to aluminium raw materials, Mr Patra said that alumina business had always given a profit to NALCO, irrespective of the ups and downs in the market price. Right now, NALCO focuses on the 5th stream refinery to increase its alumina production capacity to 3.1 million tonnes from the current 2.1 million tonnes.

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He also said that NALCO could run on its own for the next two-three years for being a debt-free company and having a self-sufficient fund. But to take advantage since interest rates are quite low at present, NALCO would raise 70 per cent debt from the market, added Mr Patra.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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