Nalco to scale up downstream portfolio, plans Rs 5.52 bn project

National Aluminium Company (Nalco) is placing high stakes on downstream aluminium business. After co-developing a downstream park with Odisha Industrial Infrastructure Development Corporation (Idco) and planning joint ventures with foreign players- Almex and Rusal, the navratna company has pledged an investment of Rs 5.52 billion on a major downstream complex at Kamkhyanagar in Dhenkanal district.

Billed as the largest investment in metal downstream space in Odisha, the project will be funded wholly from Nalco's internal accruals.

“Nalco's focus is on constant value addition. There is huge demand for value added aluminium products. Apart from catering to the demand, product diversification will also shore up our margins”, said Nalco’s chairman & managing director T K Chand.

For the planned downstream complex, 188 acres of land has been identified. The land allotment is subject to appraisal by Industrial Promotion & Investment Corporation of Odisha Ltd (Ipicol). Nalco expects to complete the project within 48 months of taking possession of land. The project has the potential to generate employment for 1761 people, both direct and indirect. The complex will house facilities for aluminium foils, rolled products and extrusions with a combined envisaged capacity of 170,000 tonnes per annum. Aluminium alloy wheels, a key component for the automobile industry, will also be rolled out from this plant.