
The leading integrated aluminium producer of India, National Aluminium Company Limited (NALCO), has announced plans to diversify into areas like merchant mining, green power, and caustic soda to withstand downturns in the global metal market and sustain profitability in the long run.
The New Business Model (NBM) which encompasses “immune” sectors like IPP, rare metal like titanium, recovery of iron from red mud waste (an alkaline waste of bauxite digestion), is envisaged to give a new dimension to the company’s growth plans.
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Nalco achieved highest-ever production with bauxite transportation of 68.25 lakh tonnes (achieving 100 per cent capacity utilization) in the financial year 2016-17. The figures even surpassed the previous best of 63.40 lakh tonnes. With the sluggishness extending in the global metal market and input costs of raw materials rising higher, the company thought it wise to venture into domains like merchant mining which are fairly “immune” to these macroeconomic changes.
Nalco registered a net profit of INR 669 crore in fiscal 2016-17, compared with INR 787 crore achieved during the previous year. The company’s net profit also declined 4.4 per cent year-on-year to INR 129 crore in the first quarter of current financial.
"This NBM will not only give a new dimension to the company's growth plans but also redefine business sustainability," Nalco CMD T.K. Chand said at the company's annual general meeting in Bhubaneswar last Friday.
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