Indal proposes to set up a 75,000-to-1,00,000 tonne per annum kaolin project at Lohardaga in Bihar as part of its upstream chemicals and mining business.
The plant, which is estimated to cost Rs 60 crore, is likely to come up in 1998-99.
The aluminium major has conducted a feasibility study and a pilot plant has started operations already.
There exists a considerable deposit of good quality kaolin below the companys bauxite deposits at Lohardaga and Indal is targeting the domestic as well as export markets for its applications in various businesses, a company official said.
This project would form a part of the companys upstream activities which includes integrated projects related to mining, alumina refining and smelting.
Indal is exploring this area as a new minerals business for various industry applications which includes enhancing gloss and whiteness in coated paper used for colour printing, advertising.
Kaolin can also be used by the paint, refractories and cables industries, the official said.
Keeping in mind the fire retardant and insulation properties it could also be used in the plastic industries, he added.
Currently, most of the kaolin is imported into India.
Few Indian companies including English India China Clay Company, a Thapar group company, and Kerala Ceramics are domestic producers of the product.
The company has targeted an overall growth of 7 per cent for the year 1997-98 with almost 6 per cent, 12 per cent and 9 per cent growth in sheet, foil and extrusion segments, respectively, said the official.
With a general deceleration in the market in 1996-97, the aluminium industry suffered setbacks in its sheet and foil business which grew at a very tardy pace.
There was a down-gauging in the sheet industry, which grew at a rate of 1 per cent against a projected 8 per cent, said the official.
Although Indal was able to increase its share in sheet and alumina production, last year saw a declining trend.
This was further aggravated with international prices for alumina dropping to about $140 per tonne in the second-half of the year although the expected levels were ruling around $200 per tonne.
The Indian associate of the Canadian major Alcan aims to tap the global foil market in a big way by concentrating on increased exports in value-added downstream products.
According to the official, the companys exports were lower at about 10 per cent compared with 15 per cent in the earlier years.
Indal has targeted exports of 25 per cent over the next two years.
Oracle to draw up infotech package
Nandini Goswami CALCUTTA
US software major Oracle will design an integrated infotech package to improve Indals supply chain and financial management.
Indal has received licence for Gemms and Oracle Financials packages in this regard. While Gemms will be implemented for the first time in an Indian company, and will be applicable for Indals manufacturing operations, Oracle Financials would encompass Indals entire business activities.
The latter is a canned software package which would help link data at Indals ten offices and thirteen plants.
The company has also signed an enterprise resource package (ERP) agreement with Price Waterhouse.
