By Abhishek SonkarBhubaneswar, Oct 17 (PTI) Aluminium major Nalco isplanning to set up two joint ventures - one with US-basedAlmex and another with Russia's Rusal - at the upcoming AngulAluminium Park in Odisha, a senior company official said.
The two JVs will manufacture special-grade aluminium tobe used in metro trains, e-vehicles, aerospace and automobilesector, Nalco Chairman and Managing Director T K Chand toldPTI here.
At present, this high-grade aluminium is not manufacturedin the country.
He did not disclose the amount of investment but saidtalks with Almex and Rusal are at advanced stage, and addedthat an announcement regarding the same would be made after alocal partner is identified.
The local partner will have a minority stake in the JVs,Nalco will keep 40 per cent and the remaining will be with thetwo foreign firms, he said.
"We will form JVs with Almex and Rusal as technologypartners and another Indian entity as minority shareholder.
Nalco will set up, run and get the new entity listed and thenexit the venture by selling its stake to the local partnerunder a new BoT (Build–operate–transfer) model for thesector," Chand said.
Almex specialises in production of aerospace gradealuminium and Rusal is a major player in primary aluminium,aluminium alloys, foil and alumina.
Chand further said a lot of opportunities are providedby the domestic aluminium sector. In the coming years, e-vehicles will hit the roads and special grade aluminium willbe required in huge amount, he said.
Highlighting the additional benefits of the upcomingAngul Aluminium Park, he said this is the right time to investas companies will get a clear land, roads for transportation,power supply and other basic supplies to run units.
The park is being jointly set up by Nalco and OdishaIndustrial Infrastructure Development Corporation.
Chand also encouraged the ancillary and downstreamcompanies to invest in the sector.
Nalco is even ready to provide a helping hand toancillary and downstream companies. "We will help you insetting up a unit in JV, make you stand and then when youstart functioning well, we will exit," he said.
India's aluminium consumption is growing at a compoundrate of 15 per cent (year-on-year), making it one of thelargest consumer markets in the world. With the demand ofaluminium expected to rise further, new initiatives such asone from Nalco is certainly expected to increase the capacityrapidly. PTI ABIANU.
This is unedited, unformatted feed from the Press Trust of India wire.