Vedanta plans to set up auto ancillary park in Odisha for manufacturing alloy wheels

In partnership with the Odisha government, Vedanta is reportedly planning to set up a hot metal park at Jharsuguda, which would host auto ancillary units with Vedanta’s aluminium unit being the anchor.

According to Business Standard report, the company, while specifically looking at alloy wheels, is already in talk with top automobile original equipment makers (OEMs) and has also signed a few agreements with them.

Ajay Kapur, the newly appointed chief executive officer of Vedanta Aluminium and Power told Business Standard, We are in talks with the government of Odisha to put up a hot metal park there and have automobile ancillary units. It (the plan) is at an active discussion stage. The government will provide land and enter into a joint venture with us.”

The setting up of a hot metal park is part of Vedanta’s plan to scale up the value curve. Besides, the company is aiming at increasing its metal capacity to 3 million tonnes from 2 million tonnes.

Mr. Kapur said Vedanta is already number one with 40 per cent of India’s aluminium market, while this park will help Vedanta to become the strongest in the world.

As per the report, the Odisha government has already identified 150 acre of land for the proposed park that will likely house 10 to 15 medium-sized downstream units. These downstream units will most likely use liquid alumina or ingot for manufacturing specially alloy wheels and other automobile parts. Total investment for this project is expected to be around INR 5,000 crore.

According to the Automotive Component Manufacturers Association of India, there is an annual requirement of around 35 million alloy wheels in India for two wheelers, out of which only 13 million wheels are produced by domestic manufacturers while the rest is imported from China.