NALCO eyeing new oversees market to offset falling aluminium prices

With domestic and global market for metal witnessing sluggishness, National Aluminium Company Limited (NALCO), a Navaratna central public sector unit, is looking at exploring virgin markets for its products on foreign soil, besides attempting to increase its footprint in mining sector.

“It is difficult period for ferrous and non-ferrous industries. As high as 60 per cent of these industries have reported loss worldwide. Despite prevailing unfavourable conditions, NALCO has been maintaining profitability. We need to tide over the situation by way of reaching out to new and virgin markets,” said T. K. Chand, who took as the full-time Chairman and Managing Director of NALCO, here on Monday.

“The domestic aluminium market appears to be saturated. Expanding market network involves high cost. We, however, have to strike a balance. Immediate challenge, we will be facing in international market for aluminium, is fierce competition from middle-east countries which have operational advantage of having cheap power,” he said.

At present, consumption of aluminium in India is 1.5 million tonne while international market consumes 50 million tonne annually. Nalco also posted an export turnover of Rs 3,307 crore in 2014-15. Mr. Chand hinted that as far as international market is concerned, possibilities could be explored in some East Asian and African countries.

The new NALCO CMD while elaborating his vision for the company said, “a value based system driven management with a strong business sense at all levels, making NALCO products cost competitive in international market, produce diversification to top up turnover, safety as a culture and empathetic welfare of employees and community around will be approach of the company.”

For the year ended March 31, 2015, the Navaratna company has reported 106 per cent jump in its net profit at Rs 1,322 crore as against Rs 642 crore achieved by its previous fiscal. During the same period, NALCO had achieved its highest ever gross turnover of Rs 7,771 crore.