Nalco faces the market blizzard bravely and comes out successful: T K Chand

Navaratna PSE National Aluminium Company (Nalco) delivered an encouraging performance in the 2015-16 fiscal even as about 70 per cent of the world's aluminium producers have reported loss. The company's gross turnover was INR 7,157 crore and net profit INR 731 crore, noted Nalco CMD T K Chand.

“Nalco has remained profitable all through by successfully handling the market downturn, by maximising bauxite mining and alumina refining, adding new pots and augmenting production, besides effecting several cost reduction measures, particularly in raw material and energy consumption,” Chand said informing that the Odisha-based aluminium major has been declared as the lowest cost producer of alumina by London-based Wood Mackenzie. The CMD was addressing a gathering in Bhubaneshwar, Odisha on the occasion of Independence Day.

“During 2015-16, Nalco has increased dividend payment to shareholders from 35 per cent to 40 per cent. Its share price in the market has gone up from INR 36.55 in July 2015 to INR 47.50,” Chanda said in address, adding the company's market capitalisation has also improved from around INR 9,000 crore to INR 12,200 crore.

He said, in July 2016, Nalco produced 23,18,371 metric tonnes of bauxite (up 32.45 per cent from the same period previous year) and 6,49,200 metric tonnes of alumina hydrate (up 12.88 per cent from the same period previous year).

“There is a saying, ‘Fortune favours the Brave’. This is apt in case of Nalco facing the market blizzard bravely and coming out successful. This could not have been possible without a concerted effort of all employees,” said a visibly proud Chand.



It is to be noted that the aluminium major has set an annual production target of 21.30 lakh tonnes of alumina and 3.85 lakh tonnes of aluminium for the current fiscal. It has also set a Capex target of INR 1,021 crore, which includes projects like development of Utkal D and E Coal blocks, preliminary work for one million tonne capacity refinery at Damanjodi, and Angul Aluminium Park among others. A number of brownfield expansion projects have also been lined up in offshore locations.

“A new business model has been introduced to enable us strengthen the company’s business by leveraging its core competency in mining, metals and energy sectors, through modernisation, Greenfield and Brownfield expansions, upstream and downstream integration,” Chand said.

The model also encompasses plans to diversify into 'green power', build independent power plants, and generate revenue from wastes like red mud while also developing new revenue channels that are immune to cyclicality and downturns in the metal market, he added.