Sales turnover went up by 42.16 per cent at Rs 2,142.35 crore as against Rs 1,506.65 crore in the previous year. Nalco exports both aluminium metal and alumina. Exports touched Rs 1,031.65 crore, with a hefty jump of 63 per cent over the previous year's Rs 632.17 crore. In physical terms, it exporeted 0.95 lakh tonnes of metal (0.39 lakh tonnes), accounting for an export revenue of Rs 635.27 crore. Alumina exports at 4.79 lakh tonnes brought in Rs 396.38 crore.

Bauxite production went up to 28.22 lakh tonnes compared to 28.06 lakh tonnes in the previous year. Alumina hydrate production too improved to 9.06 lakh tonne against Rs 9.01 lakh tonnes. On the metal front production was impressive at 2.12 lakh tonne, which is a hefty jump over 1.45 lakh tonnes in the previous year. Total metal sold was 2.15 lakh tonne, with domestic sales being at 1.2 lakh tonnes.

The alumina smelter plant achieved 100 per cent capacity utilisation with the commissioning of the 480th pot in March. The metal production is expected to be better this year with this commissioning. The company has undertaken a Rs 3,700 crore expansion.

The bauxite mines capacity is being expanded from 24 lakh tonnes to 48 lakh tonnes per annum. The alumina refinery capacity is being hiked from 8 lakh tonnes to 15.75 lakh tonnes. The expansion plans cost Rs 1,665 crore in the first segment. In the second phase of expansion, smelter capacity will be expanded to 3.45 lakh tonne from 2.3 lakh tonnes per annum. The capacity of the power plant too would go up from 720 MW to 840 MW.

The capacity addition of 120 MW would cost Rs 2,062 crore. Aluminium producers have realised that the right way to increase the bottom line is to go in for value addition. In the aluminium industry, especially in India, the potential for value addition is immense. While much of the aluminium today goes for the electrical industry, the use of aluminium in other areas have not been merchandised well.

In developed countries aluminium is put to as many as 3,500 end uses. In India right now this is very small. Aluminium could be gainfully employed in auto engine blocks, bus bodies and host of other end uses in the housing sector.

This is also the reason the other major player Hindalco sought and got Indian Aluminium, which has much downstream product capacity. Nalco is not to be left behind in this game of value-addition.

Nalco has a number of downstream projects which are in the process of implementation such as value-added special grade alumina, detergent grade zeolite and gallium.

One can easily see the implication of this as there will be gains in the future both in volumes as well as margins.

Nalco took over International Aluminium Products Ltd (IAPL) in March and it will add to the product profile. This EOU will become an asset with the devaluation of the rupee. All in all a growth story, Nalco is a safe bet to pick when the market is down.