Nalco to diversify into merchant mining; high-end alloy and lithium battery production on the card

Nalco is looking at venturing out beyond aluminium to invest in value added segments like production of high-end alloys for space vehicles and electric cars and lithium battery production; the company chairman TK Chand said this in an interview to Economic Times.  The company is also planning to take up merchant mining and mineral trading to diversify its business. 

Nalco has set up a two new business verticals to focus on lithium-ion battery and merchant mining. The lithium vertical will look at acquiring lithium and other strategic mineral assets globally. Their JV Khanij Videsh India (Khavil) with Hindustan Copper and MECL will be a part of this vertical. They will also engage in mineral trading in this sector. He company plans to explore lithium sources in Gujarat and Rajasthan by investing INR 15-20 crore in a pilot project.

ISRO selected Nalco and nine other companies to make lithium-ion batteries for space vehicles. Nalco is planning to collaborate with Japanese and Korean companies for making EV batteries.

In order to venture into merchant mining, Nalco is looking at getting a bauxite reserve in Saranda (Jharkhand) from MECL. The company will participate in e and fo -auction for bauxite.

The company has initiated a joint venture with Mishra Dhatu Nigam (Midhani), a defence ministry undertaking for making high-end alloys with an investment of INR 4,500-crore. They are in the process of finalising the joint venture agreement, following which we will incorporate the company. This will produce high-end alloys used in space automobiles, railways and electric vehicles.

Nalco is planning to expand its aluminium refinery at Damanjodi with an investment of INR 5,500-crore. This will increase the capacity to 3.2 million tonnes per annum from 2.2 mtpa now.

Nalco’s profitability has been on a steady upward growth. From a profit of INR 731 crore in FY16 on a turnover of INR 6,703 crore, we touched a profit of INR 1,732 crore in FY19 on a turnover of INR 11,386 crore. The company has projected a profit figure of INR 2,000 crore in FY20 after commissioning and ramp up of Utkal D coal block and the refinery expansion.

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