Jindal Aluminium will invest Rs 800 crore to set up two plants to make aluminium sheets and foils, and produce powder coated and anodised materials.
"We are setting both the plants in Karnataka. Work on the first plant, near Bangalore, for manufacturing of aluminium sheet and foils has already started. We are investing Rs 500 crore outlay," Jindal Aluminium CMD Sitaram Jindal told PTI.
The second plant would also come up near Bangalore for production of powder coated and anodised materials with an investment of Rs 300 crore. However, the ground work on the plant would start only after the first plant gets operational in April next year.
While aluminium sheet and foils are used for packaging applications, including food and beverage containers; powder coating is a durable method of providing a decorative finish to metals. Anodising is an electrolytic passivation process used to increase the thickness of the natural oxide layer on the surface of metal parts.
Jindal Aluminium claims to be the largest manufacturer of aluminium extrusion profiles in India commanding around 25% market share. It has 70,000 tonnes per annum installed capacity at its lone plant in Bangalore. However, due to poor demand, the company could only produce 55,000 tonnes aluminium extrusion profiles last fiscal.
Jindal said that the aluminium sheet and foil plant would have the capacity to produce 50,000 tonnes a year and provide direct jobs to 700 people. Jindal Aluminium would spend Rs 300 crore from internal accruals and the remaining from a foreign bank to fund the project.
It would not require any funding requirement from outside for the plant to produce powder coated and anodised materials, he said, adding that cash generated from its existing business would take care of that.
"We have land in possession for the second plant. It will likely to go on stream by June-July, 2013," he said, adding that there was a huge demand for such products overseas.
Jindal said the company had clocked Rs 800 crore turnover last fiscal and after the operationalisation of these plants, its topline would likely to go past Rs 2,000 crore by the end of 2013-14 fiscal.