Nalco signs contract with Midhani to form JVC for a high-end aluminium alloy plant

According to a recent report, National Aluminium Company (Nalco) has signed a contract with Mishra Dhatu Nigam (Midhani) to form a joint venture company (JVC) for setting up a high-end aluminium alloy plant, where they will together manufacture aluminium plates and sheets.

"We would like to inform you that a joint venture agreement was signed on August 7, 2019 with Mishra Dhatu Nigam Ltd (MIDHANI) to incorporate a joint venture company (JVC) with an objective for setting up of high-end aluminium alloys plant for manufacturing of plates, sheets," National Aluminium Company said on Thursday in a filing to the BSE.

The state-owned company also said that the board of the joint venture would have a maximum of 12 board members with both the companies nominating minimum two directors each.

As per the report, Nalco and Midhani will initially subscribe for shares in the JVC in equal proportion of 50 per cent each.

"JVC may agree to induct a technology partner/technology associate/technology provider with shareholding up to a maximum of 10 per cent of the total paid up equity in the JVC during incorporation or else may dilute up to 10 per cent of the total paid up equity (in equal proportion) to them," the filing said.

Followed by the announcement of this joint venture, Nalco’s stock was traded with gains of 1.37 per cent to 44:35 at 11:11 IST on the BSE.