NALCO Unveils ₹30,000 Crore Growth Roadmap to Boost Aluminium Production

CMD Bijendra Pratap Singh outlines three-phase strategy focusing on efficiency, value addition, and capacity expansion

Bhubaneswar: National Aluminium Company Limited (NALCO), a Navratna public sector enterprise under the Ministry of Mines, has announced an ambitious three-phase strategy with an estimated investment of around ₹30,000 crore. The plan aims to enhance production, improve efficiency, and introduce value-added products, consolidating the company’s position in both domestic and global markets.

The announcement was made by NALCO Chairman-cum-Managing Director (CMD) Bijendra Pratap Singh during a press briefing in Bhubaneswar.

Singh explained that the immediate priority is to strengthen NALCO’s operational base by enhancing efficiency across its mines, refinery, and smelter units. This includes cutting costs, reducing carbon emissions, and boosting manpower productivity.

“Our short-term strategy is focused on running our existing units at maximum efficiency. We are working to improve performance, reduce environmental impact, and ensure cost competitiveness,” he said.

Singh also noted that NALCO’s operations are currently running at more than 100 percent of their rated capacity, showcasing the company’s robust performance.

The second phase of NALCO’s strategy, expected to roll out over the next two to three years, will focus on developing more value-added products to meet evolving market demand.

“These include wire rods, foils, special-grade alumina, and fused alumina. This diversification will not only strengthen our product portfolio but also enhance our margins in the global aluminium market,” Singh said.

By venturing into specialised segments, NALCO hopes to cater to industries such as electronics, aerospace, renewable energy, and packaging, which require high-quality aluminium products.

Looking ahead to 2030, NALCO plans to almost double its smelter capacity—from the present 4.6 lakh tonnes to 9.5–10 lakh tonnes annually. This will be supported by the establishment of a new power plant to ensure reliable energy supply for the expanded operations.

The expansion plan involves an investment of ₹18,000–20,000 crore for smelter capacity enhancement and ₹11,000–12,000 crore for the new power plant.

“Our long-term strategy is to align with the projected demand for aluminium, particularly in sectors like infrastructure, electric mobility, and renewable energy. By 2030, we aim to secure NALCO’s position as a global leader,” Singh affirmed.

While India’s strong domestic demand limits the scope for aluminium exports, Singh said NALCO is exploring new markets.

“We already supply to the United States. With the UK-India trade agreement on the horizon, we see strong opportunities in the UK, especially with electric vehicle manufacturers and solar panel producers,” he added.

Singh acknowledged that global trade challenges, such as tariffs and geopolitical uncertainties, remain, but reiterated that NALCO is well-positioned to navigate them.

On the technological front, NALCO is in the process of selecting global partners to support its expansion plans.

“There are only four or five leading smelter technology providers worldwide. While we initially considered continuing with an existing supplier, we are now evaluating options from across the globe, including firms like GAMI and EGA from China,” Singh revealed.

This approach is expected to bring the best available technology to NALCO’s future projects, ensuring efficiency, sustainability, and competitiveness.

Highlighting the company’s financial performance, Singh said NALCO reported one of its best first-quarter results in two decades.

In Q1 of FY 2025–26, the company registered revenue of approximately ₹3,900 crore and profit exceeding ₹1,000 crore. Alumina production and sales surged nearly 50 percent year-on-year, while aluminium output and sales also recorded steady growth.

“These results reflect the strength of our operations and the dedication of our workforce. Our roadmap builds upon this strong foundation to ensure long-term growth and value creation,” Singh concluded.