With domestic and global market for metal witnessing sluggishness, National Aluminium Company Limited (NALCO), a Navaratna central public sector unit, is looking at exploring virgin markets for its products on foreign soil, besides attempting to increase its footprint in mining sector.
“It is difficult period for ferrous and non-ferrous industries. As high as 60 per cent of these industries have reported loss worldwide. Despite prevailing unfavourable conditions, NALCO has been maintaining profitability. We need to tide over the situation by way of reaching out to new and virgin markets,” said T. K. Chand, who took as the full-time Chairman and Managing Director of NALCO, here on Monday.
Sharing his previous experience as Director (Commercial) of Rashtriya Ispat Nigam Limited, Mr Chand said, “RINL reported profit at a time when Indian steel sector recorded negative growth. One of the reasons for excellent performance was that the steel PSU had gone off-shore markets such as Sri Lanka and few African countries.”
“The domestic aluminium market appears to be saturated. Expanding market network involves high cost. We, however, have to strike a balance. Immediate challenge, we will be facing in international market for aluminium, is fierce competition from middle-east countries which have operational advantage of having cheap power,” he said.
At present, consumption of aluminium in India is 1.5 million tonne while international market consumes 50 million tonne annually. Nalco also posted an export turnover of Rs 3,307 crore in 2014-15. Mr. Chand hinted that as far as international market is concerned, possibilities could be explored in some East Asian and African countries.
The new NALCO CMD while elaborating his vision for the company said, “a value based system driven management with a strong business sense at all levels, making NALCO products cost competitive in international market, produce diversification to top up turnover, safety as a culture and empathetic welfare of employees and community around will be approach of the company.”
Mr. Chand specifically emphasised on strengthening company’s expertise in mining sector. “Nalco has the core competency in mining sector. We have to leverage our strength. Since mining is a very important factor in whole value chain, I would be proposing NALCO board to include mining plan in vision plan.”
At present, NALCO has bauxite reserve with an estimated 300 million tonne in Panchpatmalli hills in Odisha’s Koraput district and is pursuing 75 million tonne bauxite reserve in Pottangi area in the same district. As part of its attempts to diversify, the company is also keen to enter coal mining and put up coal-fired power plants.
For the year ended March 31, 2015, the Navaratna company has reported 106 per cent jump in its net profit at Rs 1,322 crore as against Rs 642 crore achieved by its previous fiscal. During the same period, NALCO had achieved its highest ever gross turnover of Rs 7,771 crore.
Prior to present assignment, Mr. Chand had three decades of rich experience in mining and metal sector, including eight years at Board level. A gold medallist from Utkal University, the new NALCO CMD had undergone training in Advanced Management Programme in International Centre for Promotion of Enterprises (ICPE) in western Europe and Queensland University of Technology, Australia.
