The state-owned National Aluminium Company (Nalco) announced its plan for Brownfield expansion by five lakh tonnes and Greenfield by six lakh tonnes per annum in the next few years.
The navaratna company, which at present produces 4.6 lakh tonnes of primary aluminium, eyes to establish a Greenfield refinery with a production capacity of 1.4 million tonnes or 2 million tonnes in Visakhapatnam. The investment, according to the company, required would be INR 7000 crore to INR 12000 crore. The smelter plant and the captive plant would reportedly involve additional investment.
Mentioning about the clearance for investment in the Visakhapatnam project, Nalco Chairman and Managing Director T.K. Chand told The Hindu on Wednesday, November 21, that for the five-lakh tonne Brownfield expansion, the company would invest INR 10000 crore by 2021 and for the Greenfield expansion, it would investment INR12000 crore by 2025. Captive power plants with a total capacity of 2640 MW will entail an additional outlay of INR 16,000 crore.
Mr. Chand said the Greenfield investments would come up at Angul, Dhenkanal, and Kamakshyanagar of Odisha. The Visakhapatnam plan, however, has not been finalised yet.
Mr. Chand expects this project to be a game-changer, taking the aluminium major to its top-lines to more than INR 15000 crore and net profit to 2000 crore plus.
The company during the first half of FY 2018-19 recorded a turnover of INR 5952 crore, up 42 per cent from the corresponding period last year. The net profit went up from INR 364 crore in H1 of the previous fiscal to INR 1197 crore this year.
Mr. Chand said the net profit of Nalco in H1 of current fiscal registered a three-fold growth and the operating profit increased more than four fold.
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