Nalco draws up ₹37,000-cr plan for expansion, diversification.

State-owned aluminium major National Aluminium Co Ltd is planning to invest over ₹37,000 crore over the next 5-7 years for expansion of existing facilities, setting up of new smelter unit overseas, development of mines and diversification in power.

According to Tapan Kumar Chand, Chairman-cum-Managing Director, Nalco, the company is undertaking the investment plan to reduce operational expenses and to beat the depressed market realisations.

'Over ₹37,000 crore will be spent over the coming 5-7 years. Focus will be on reducing costs of producing aluminium by achieving higher economies of scale,' the CMD told BusinessLine.

Brownfield expansion and tie-ups with low power producers overseas is its two-prong strategy to wriggle out of “subdued market conditions.” The company expects 6-7 per cent overall cost benefit through this exercise.

Because of lower costs, currently around 56 per cent of the country’s aluminium requirement is met through imports.

HBL