National
Aluminium Company Ltd. (NALCO)
Background
Nalco was incorporated in 1981 as a public sector enterprise of the
Government of India, to exploit the large deposits of bauxite discovered in
Orissa. The company is Asia 's largest
integrated alumina complex, encompassing bauxite mining, aluminium refining,
aluminium smelting and casting, power generation, rail and port operations.
The government intends to bring down its stake in Nalco to 77.1 per cent
by selling 10 per cent equity, which means a public offer of over Rs 64.4
million equity shares. Due to nation-wide protests of trade unions and the Left
parties, the disinvestment has been put on hold.
Plant location and capacity details
It is a leading producer of alumina with an annual refining capacity of
1.6 million tonnes and second largest producer of aluminium with an annual
smelting capacity of 0.3 million tonnes. The company also owns captive bauxite
mines in Orissa having reserves of 310 million tonnes and an annual mining
capacity of 4.8 million tonnes. It generates electricity from its plant at
Angul and its alumina refinery is located at Damanjodi while smelters are
located at Angul. In 2007-08, the company's aluminium capacity and capacity
utilisation was 345,000 tonne and 105 per cent, respectively.
Business mix
The company's products are classified under two segments: aluminium and
chemicals. The aluminium segment includes aluminium ingots, billets, wire rods,
strips and other related products. The chemicals division includes calcined
alumina, alumina hydrate, etc. The aluminium segment contributes an average 70
per cent to the total revenues while the rest is contributed by the chemical
segment.
Market position
In the primary aluminium segment, the company enjoyed a 27.3 per cent
market share in 2008-09. Nalco is the third largest exporter of aluminium and
alumina in the country with exports contributing an average 40 per cent to the
total revenue.
