NALCO’s Angul Aluminium Park targets deeper value addition through downstream manufacturing

National Aluminium Company Ltd (NALCO) is seeking to push more of its aluminium output into higher-value applications through the Angul Aluminium Park, with the park’s direct access to molten metal positioned as a key advantage for downstream manufacturers.

NALCO, in association with Odisha Industrial Infrastructure Development Corporation (IDCO), showcased investment opportunities at the park during a roadshow in Kolkata. The focus was not only on attracting new industries but also on building a downstream ecosystem around NALCO’s existing aluminium operations in Angul.

NALCO and IDCO develop park through joint partnership

The Angul Aluminium Park is being developed through a partnership between IDCO and NALCO, with IDCO holding 51 per cent and NALCO 49 per cent.

The project has an estimated cost of INR 996 million, with total equity of INR 331.1 million. NALCO’s share of the equity amounts to INR 162.2 million, which has already been paid.

The development is being planned across multiple phases. The first phase covers 223 acres of land, while 134 additional acres have been acquired for Phase 2. Land acquisition for Phase 3 is ongoing, indicating that the park is being expanded beyond its initial footprint.

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Dedicated corridor to connect smelter with downstream units

One of the park’s central features is its planned dedicated hot metal corridor, which will directly connect NALCO’s smelter with AAPPL.

Through this corridor, NALCO plans to supply 50,000 tonnes of hot metal annually at a discounted rate to industries operating within the park.

For downstream manufacturers, the arrangement changes how aluminium reaches the production line. Instead of receiving solid aluminium and subsequently melting it again, industries will be able to receive molten metal directly from the smelter. This is expected to eliminate the need for solidification, transportation and reheating, helping lower production costs and improve the economics of setting up downstream units at the park.

IDCO MD D Prasanth Kumar Reddy highlighted the molten metal corridor alongside the availability of land, water and energy as key features for industries considering investment at the park.

Push to move beyond primary aluminium

The development comes as policymakers and industry leaders emphasise the need to increase value addition within India’s aluminium industry.

Union Mines Minister G Kishan Reddy said India imports nearly USD 4 billion worth of high-finish aluminium products, making greater production, value addition and a stronger downstream ecosystem key priorities.

Mines Secretary Keshav Chandra stressed the importance of moving towards high-value finished products, supported by technology, innovation and indigenous R&D.

For NALCO, the Angul Aluminium Park is intended to provide the industrial base for that transition. NALCO CMD Brijendra Pratap Singh said the park aims to build an integrated downstream aluminium ecosystem around NALCO’s operations in Angul.

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Value rises sharply as aluminium moves downstream

The investment proposition becomes clearer when the aluminium value chain is traced from raw material to finished products.

According to the presentation at the roadshow, 4-6 tonnes of bauxite are required to produce 2 tonnes of alumina. Those 2 tonnes of alumina are then converted into 1 tonne of aluminium ingot, which can subsequently be processed into 0.90–0.95 tonne of coils. These coils can then be used to produce 0.75-0.85 tonne of battery foil.

The value per tonne increases significantly along this chain. Bauxite is valued at around INR 1,170 per tonne, while alumina is valued at approximately INR 30,000 per tonne.

The value rises to around INR 347,000–360,000 per tonne for aluminium ingot and INR 370,000–372,000 per tonne for coils. Battery foil carries the highest value shown in the presentation, at approximately INR 375,000–415,000 per tonne.

Downstream products also carry higher employment intensity

The value addition is accompanied by a rise in employment intensity as aluminium moves towards more processed products.

Bauxite generates approximately 274 direct + indirect jobs per MTPA, while alumina generates around 2,000 direct + indirect jobs per MTPA. Aluminium ingot supports approximately 2,500 direct + indirect jobs per MTPA.

The employment intensity increases further for downstream products. Flat-rolled products (FRP) have an employment intensity of around 16,700 direct + indirect jobs per MTPA, while battery foil supports approximately 20,000 direct + indirect jobs per MTPA.

This is the value-addition opportunity that the Angul Aluminium Park is seeking to capture: moving aluminium from primary production towards increasingly processed products while creating an ecosystem of downstream industries around NALCO’s smelter.