NALCO - Increase In Alumina Refinery Capacity, Robust Domestic Demand To Drive Performance: Motilal Oswal

Motilal Oswal Report

National Aluminium Company Ltd. has one of the largest integrated bauxite-alumina-aluminum power complexes in India. It has a mining complex at Panchpatmali (Koraput, Odisha) with proven reserves of ~310 million tonne, a 2.2 million tonne alumina refinery at Damanjodi (Odisha) and a 460 thousand tonne 960-pots aluminum smelter at Angul (Odisha).

Nalco also has a 50,000 tpa downstream rolling facility, a 1,200 mega watt thermal captive power plant and 198.4 mw wind power plants.

Nalco offers a wide gamut of products across calcined alumina, alumina hydrate, specialty hydrates, ingots, sow ingots, wire rods, flat rolled products, etc.

Nalco exports ~30% of its metal to markets such as China, Far East Asia, Middle East and North Africa, UK, etc.

Nalco is setting up an one million tonne alumina refinery, which will take the total installed capacity to over 3.1 mt. Nalco has roped in renowned global companies such as Rio Tinto and ThyssenKrupp. The project is expected to commence operations by Q3 FY24.

Nalco is currently operating at 100% capacity and the next leg of growth will commence after the expansion. Nalco also plans to set up a 0.5 mt aluminum smelting facility, which will further augment growth.

Nalco is expected to clock 460 kt of metal production and 455 kt of metal sales in FY23.

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