Offshore Ventures

Interview with Shri S.N Johri, Hon. President, Aluminium Association of India.and CMD, Nalco

Q. Why is aluminium rated as the eco-friendly metal?

Promoting use of aluminium benefit the environment in several ways. Aluminium has substituted many scarce metals like copper, tin etc. which are many imported. Aluminium is a good substitute for wood in household, building and architect, packaging and many other areas which saves on depletion of forest which are necessary for healthy environment and ecology. As aluminium is highly recyclable metal, it helps in conserving scare minerals and other resources. Due to its lightens, ease of fabrication, corrosion resistance , etc. the aluminium is used in transport sector thereby increasing fuel efficiency of the vehicle and helping in conserving petroleum resources. There are ample examples for rightly rating aluminium as eco-friendly metal.

 

Q. Last year the industry saw a fall in the aluminium price, grim power situation rising inventory levels and high cost of borrowings , which has apparently worsened the domestic aluminium production. How do you foresee the year ahead for the industry?

The aluminium scenario at present shows that the supply and the demand of metal is more or less balancing each other. But the demand is likely to grow at faster rate than the industrial production atleast till 1999, because the shut down capacity which can be revived is not very large and rate of commissioning of new smelter capacity in the world is also very slow. To meet the growing demand by western world the export form eastern block will also remain high. According to Anthony Bard & Associates, primary aluminium consumption increasing 1.5 times more rapidly than industrial production.

There exists ample opportunities for increasing aluminium consumption in the country considering growing need and purchasing power of the people at large. As such Indian aluminium industry has a bright future in the years to come, In addition to this, recently RBI has allowed Indian companies to hedge on commodities exchanges like LME and Indian aluminium industry must also take advantage of the same.

Q. Since India's economic liberalisation of trade, started six years ago, aluminium was chosen as the first sector to be exposed to the international competition. How do you rate the performance of the Indian aluminium sector?

The initiation of economic liberalisation process and removal of trade barriers in 1990-91 have brought radical change in the mind-set of the Indian industry. Aluminium industry has been looking up for growth all the sectors with emphasis on application/enduse sector. The constrains of technology, funds or market tie ups for industries are no more there as it used to be earlier.

All the aluminium producers in the country are working towards cost reduction without effecting the quality of their products. As aluminium industry has now become one word with liberalisation so the technologies, engineering and the human skills calls for investment for achieving the benchmark of global standard. All the producers are modernising and retrofitting their refineries, smelters and allied facilities of the production.

It is expected that the there will be an additional capacity of more than 5 lakh TPY of aluminium smelting in the next five years. Liberalisation has opened up the avenues for boosting up the export of alumina and aluminium alongwith access to the global technology, joint ventures and collaborative opportunities with availability of foreign funds for the development of Indian aluminium industry