BHUBANESWAR: National Aluminium Company (NALCO) has formulated a long-term ‘game-changing’ business plan, which is envisaged to bring the aluminium maker an additional Rs 935 crore in net profit over the next three years.
According to the company, the additional net profit would be driven by a spate of projects in the pipeline that is set to commission in FY19-20. “The model provides for focusing operation of Utkal-D by the second quarter of 2019, commissioning of one million tonne of alumina refinery, setting up of Wire Rod Mill 3 and bringing into stream caustic soda plant, coal tar pitch plant, among others,” said Tapan Kumar Chand, CMD, NALCO.
On the firm’s growth plans, Chand pointed out that opening of Utkal-D captive coal block is poised to bring in a net profit of Rs 460 crore. Additionally, the Rs 5,540 crore aluminium refinery brownfield project at Damanjodi (Odisha) is set to add another Rs 275 crore. The new stream is expected to be operational by April 2021. “With all these initiatives, coupled with other small projects, NALCO’s minimum PAT level is expected to be over Rs 1,200 crore by 2022, making it a super-blue chip company,” he said.
The aluminium major is also planning to invest over Rs 35,000 crore over the next five years for expansion of existing facilities, setting up of new smelter unit overseas, development of mines and diversification in power. To secure upstream integration, NALCO is setting up a 2.7 lakh TPA caustic soda plant in a joint venture (JV) with Gujarat Alkalies & Chemicals Ltd at Dahej at an investment of Rs 1,999 crore. Similarly, to promote downstream and ancillary industries, NALCO is setting up an aluminium park in Angul in JV with state-owned Odisha Industrial Infrastructure Development Corporation.
NALCO has registered more than 100 per cent growth in net profit at Rs 1,342 crore during FY17-18, against Rs 669 crore in the previous year. The company’s net sales turnover for the year under review stood at Rs 9,377 crore, registering a growth of 26 per cent year-on-year, the highest ever since its inception.