The depreciation in the rupee against the U.S. dollar is good news for state-run aluminium processor and exporter National Aluminium Company Ltd.
If the Indian currency depreciates by a rupee against the dollar, Nalco stands to gain Rs 157 crore annually, TK Chand, company's chairman and managing director, said in an interaction with BloombergQuint. The state-run company generates 80 percent of its profits from the sales of alumina—a raw material used in the manufacture of aluminium.
Chand said that rising alumina prices—that surged 10 percent over the last fortnight—due to short supply and strikes in Alcoa refineries across Australia have also worked in Nalco's favour.
“It's predicted that there will be a shortage of 7 lakh to 1 million tonnes of alumina globally this year,” he said.
Watch the full interview here:
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