Alumina Extrusion Plant Near Pune On The Anvil

Indian Aluminium Company (Indal), in collaboration with Hydro Aluminium of the United Kingdom, will set up an alumina extrusion plant near Pune. Indal had formed a 49.5:50.5 joint venture company with the UK company, Indal Hydro Extrusions (IHEL), last year.

The project is part of Indals overall strategy to create a presence in downstream aluminium products market through strategic alliances with global players.

The feasibility study for the plant has been completed and the company is at present in the process of land acquisition, said N K Choudhary, director and group president (smelter, chemicals and power). The project cost will be finalised after the land acquisition, he said.

 

A market survey will also be conducted to identify the possible areas in which the products will be marketed. IHEL was formed to address all segments of the extrusions market in the country like building, construction, transportation and consumer durables. The new plant will focus on these segments, Choudhary said.

Indal has worked out a total capital expenditure of Rs 160-170 crore for 1997-98 against Rs 106.10 crore last year. With global prices for aluminium and alumina products showing an upward trend, Indal expects its price realisations to improve next year.

The company is expanding capacities to bring about a substantial increase in volume in all its businesses. Its sheet rolling mills will be modernised with inputs from Alcan, which holds 34.6 per cent of Indals equity. The extrusion plant in Kerala will be upgraded and modernised with technological support form Hydro Aluminium Extrusions, Europe. The company also plans to put up a kaolin (china clay) plant with a capacity of 100,000 tonne per annum (tpa) in Bihar. Kaolin is extensively used by the paper, paint and refractory industry.

Indal, in association with Alcan, plans to build up a market base along the Indian Ocean rim which has a potential for absorbing 500,000 tonnes of alumminim products per year.

It also hopes to tide over its current power crisis with the commissioning of its 100mw captive power plant in Belgaum, Karnataka. The plant is being built in collaboration with the Coastal Power Company, US. The project, which is awaiting naptha allocation linkage by the government, is expected tobegin operations in 1997-98.