National Aluminium Company Limited (Nalco), which has an alumina refinery and smelter plant in Odisha and plans for maiden investment in Andhra Pradesh as part of its new business model, wants 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 primary aluminium, has reiterated its keenness to establish a greenfield refinery with a capacity of 1.4 million tonnes to two million tonnes in Visakhapatnam with an investment of ₹7,000 crore to ₹12,000 crore. The smelter plant and the captive power plant will involve additional investment.

Stating that they were awaiting clearances for investment in the Visakhapatnam project, Nalco Chairman and Managing Director T.K. Chand told The Hindu recently that for the five-lakh tonne brownfield expansion, they would be investing ₹10,000 crore by 2021-21. Greenfield expansion with a capacity of six lakh tonnes will need an investment of ₹12,000 crore by 2025. Captive power plants with a total capacity of 2640 MW will entail an additional outlay of ₹16,000 crore.

Mr. Chand said the greenfield investments would come up at Angul, Dhenkanal and Kamakshyanagar of Odisha. The Visakhapatnam plan had not been finalised as it was still in the proposal stage. The new model would be a game-changer for the aluminium major, he said adding they were working in the direction of achieving a cumulative profit of ₹1100 crore in the next two to three years. It would take its top-lines to more than ₹15,000 crore and net profit to ₹2,000 crore plus.

Mr. Chand said under the new business model, the focus had been on reducing the specific consumption, cost reduction, production augmentation and strategic marketing in spot market. During current fiscal, the company is expecting a massive rise by over ₹1,700 crore in its net profit.

The company recorded a turnover of ₹5,952 crore during the first half of FY 2018-19 accounting for a 42% growth over the corresponding period last year. The net profit of the company went up from ₹364 crore in H1 of the previous fiscal to ₹1197 crore during the first half of 2018-19, a growth of 229%.

Mr. Chand said the net profit of Nalco in H1 of current fiscal had registered a three-fold growth, the operating profit of the company increased more than four fold.

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