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Informist, Tuesday, Sept. 29, 2026

By Avishek Rakshit

KOLKATA – National Aluminium Co. Ltd. is planning to set up a greenfield project in Andhra Pradesh comprising 500,000 tonne of smelter capacity and a captive power plant to power the project, Chairman and Managing Director Brijendra Pratap Singh said Monday evening. 

Typically, such a smelter which the company has envisaged, entails an investment of INR 180 billion and a 1,000 megawatt power plant to power the plant requires a capital expense of INR 110 billion, the top company official said. 

"We are in talks with the Andhra Pradesh government for land allocation. Once we get the land, we will formally announce the new project," Singh said on the sidelines of a roadshow for Angul Aluminium Industrial Park where the company has around 49% stake. 

The company is contemplating to convert its entire production of alumina into aluminium and refrain from exporting the raw material. Singh said the move is aimed at rolling out more finished aluminium based products and such finished products are more margin accretive and also aids profits. Alumina, or aluminium oxide, on the other hand is the primary raw material to make aluminium and is priced lower than finished products. 

National Aluminium Co.'s current alumina production capacity is 2.1 million tonne per annum, of which the company exports only 130,000 tonnes. The company is also expanding its current refining capacity which will increase the alumina production capacity to 3.1 million tonne by 2027-28 (Apr-Mar), Singh said.

Singh said that the company's aim to focus primarily on rolling out value-added or finished products is in line with the ministerial objectives where the government is targeting to evolve National Aluminium Co. into a major aluminium products' producer from a company majorly focussed on raw material supplies. The company has appointed a consultant to chart a product strategy. The company intends to manufacture finished products meant for the aerospace industry and other specialised applications. 

Currently the state-owned company's current smelter capacity is 460,000 tonnes per annum, and following a technology licensing agreement signed with UAE's Emirates Global Aluminium in September for use of its smelting technology, the company is expanding the smelting capacity at its plant in Angul in Odisha by 500,000 tonees per annum. 

This brownfield expansion entails an investment of around INR 260 billion till FY31. Singh said around INR 180 billion will be spent on increasing the smelter capacity and another INR 110 billion will be spent on a 1,000 megawatt captive power plant.

"We are funding this expansion via internal accruals and debt," Singh said.

Bullish on aluminium prices holding strong in the current financial year, National Aluminium Co. is eyeing a revenue of INR 190 billion-INR 200 billion in the current financial year with a minimum margin of 45%. In the last financial year, the company reported a top line of INR 178 billion with a margin of 44%. 

At 1152 IST, its shares traded 0.97% down at INR 346.05 on the National Stock Exchange. End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Akul Nishant Akhoury

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