By Bizodisha Bureau, Bhubaneswar, September 28, 2018: National Aluminium Company (Nalco) is planning to invest about Rs 5520 crore on a major downstream complex at Kamkhyanagar in Dhenkanal- the largest investment in metal downstream space in Odisha.

Incidentally, the project will be funded wholly from Nalco’s internal accruals. For the downstream complex, 188 acres of land has been identified. The land allotment is subject to appraisal by Industrial Promotion & Investment Corporation of Odisha Ltd (Ipicol). Nalco expects to complete the project within 48 months of taking possession of land.

The project has the potential to generate employment for 1761 people, both direct and indirect. The complex will house facilities for aluminium foils, rolled products and extrusions with a combined envisaged capacity of 170,000 tonnes per annum. Aluminium alloy wheels, a key component for the automobile industry, will also be rolled out from this plant.

Nalco’s enhanced focus on downstream applications could mark the beginning of a strategic shift in the company’s strategy. Over the years, alumina sales have propelled the company’s profitability for years besides being a key driver of its Ebitda (earnings before interest taxes, depreciation and amortisation). The alumina vertical has 46 per cent share in the company’s gross turnover. Also, it accounts for nearly 80 per cent of the Ebitda. Nalco has gained massively from the rupee slump and rally in global alumina prices.

Nalco had recently announced an investment of Rs 1310 croreon a wire rod manufacturing unit. The facility, envisaging a capacity of 40,000 tonnes of alloy grade material, is coming up at the aluminium park at Angul. The company has designed the unit to meet the growing demand for aluminium in power sector, especially power transmission.

Nalco has firmed up plans to forge a joint venture with Canadian firm Almex for production of auto grade aluminium. The project at an estimated cost of Rs 250 crore, will source metal from Nalco’s smelting complex located in the vicinity.

The project between Nalco and Almex is envisaged to have an annual production capacity of 60,000 tonnes. Nalco, on its part, has committed supplies of 50,000 tonnes each year of molten aluminium to downstream companies who chose to install their units at the park. That apart, the Navratna company has also offered to lend its brand name to the products manufactured within the park. To position the park as attractive and globally competitive for investors, Nalco has announced pricing discounts on sale of molten aluminium and ingots to the downstream buyers. The aluminium major is providing a pricing discount of Rs 5000 per tonne on aluminium ingots and Rs 4000 a tonne on molten metal.