Commerce
Research Paper
E-ISSN No : 2454-9916 | Volume : 7 | Issue : 10 | Oct 2021
NATIONAL ALUMINIUM COMPANY LIMITED : A GUIDE IN PUBLIC SECTOR ENTERPRISE 1
Sharma Shraddha | Dr. Rupam Mishra
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Research Scholar, Sabarmati University, Ahmedabad, Gujarat, India. Assistant Professor, Sabarmati University, Ahmedabad, Gujarat, India.
ABSTRACT The National Aluminium Company Limited (NALCO), a Navratna CPSE under the Ministry of Mines, is Asia's largest integrated alumina-aluminum complex. Since its inception in 1987, the company has produced profits on a consistent basis for the past 32 years. According to a Wood Mackenzie report, the company is the world's lowest-cost producer of alumina and bauxite. In the fiscal year 2017-18, the company had the third biggest net foreign exchange earner among CPSEs. The government of India currently owns 52 percent of NALCO. NALCO was founded in 1981 to make use of a portion of the vast bauxite reserves discovered on the east coast, with the help of France's Aluminium Pechiney (now Rio- Tinto-Alcan). The production of Alumina and ALuminium has not only met the country's requirement for aluminium self-sufficiency, but has also given it a technological advantage in producing this critical metal to world standards. With the formation of the London Metal Exchange (LME) in May 1989, NALCO became the country's first public sector company to move into the foreign market in a large way. Since 1992, the company has been listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). For various management systems, the organisation has implemented ISO 9001, ISO 14001, OHSAS 18000, SA 8000, and ISO 50001. KEYWORDS: Aluminium Industry, Sales and Financial Performance, Future Outlook, Corporate Social Responsibility (CSR), Bauxite Mines, Alumina Refinery. INTRODUCTION: NALCO is a Navratna CPSE under the Ministry of Mines and is known as the National Aluminium Company Limited (NALCO). With its registered office in Bhubaneswar, it was founded on January 7th of this year. It is a CPSE of group "A" status, with mining, metal, and power operations that are all fully integrated and diversified. Since its inception in 1987, the company has been profitable every year for the past 34 years. With a net revenue of Rs.8,869.29 crore and a net profit of Rs.1,299.56 crore in FY20-21, NALCO still managed to do well despite the global COVID-19 pandemic. NALCO currently has a 51.28 percent stake in the Indian government. In the country, NALCO is the largest integrated bauxite-alumina-aluminumpower complex. On the Odishan state of Odisha, the company owns and operates 68.25 lakh TPA Bauxite Mine and 21.00 lakh TPA (normative capacity) Alumina Refinery in Damanjodi, and 4.60 lakh TPA Aluminum Smelter and 1200MW captive power plant in Angul. Besides Vizag port, NALCO also uses Kolkata and Paradeep ports for bulk shipment of Alumina/Aluminium and caustic soda exports. A total of nine operational stockyards are located throughout the country to help with domestic marketing for the company's registered sales offices in Delhi, Kolkata, Mumbai, Chennai, and Bangalore. According to Wood Mackenzie's most recent research, NALCO is the world's lowest-cost producer of bauxite and alumina. In 2018-19, the company was ranked second in net export earnings by the Public Enterprise Survey (PES). As a shining example of India's industrial capability, NALCO consistently utilises its capacity, absorbs new technology, ensures the quality of its products and generates profits through exports. There has been a London Metal Exchange (LME) registration for NALCO since May 1989, which makes it the first public sector company in India to enter the international market. A Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) listing dates back to 1992 and 1999, respectively. ISO 27001:2013 Certification and Accreditation was conferred to NALCO's Data Center at Corporate Office and Disaster Recovery Site at Alumina Refinery in addition to ISO 9001, ISO 14001, OHSAS 18000, ISO 50001 & SA 8000 certifications. With a new corporate strategy that includes a well-defined 3-year action plan, 7year strategy, and 15-year vision of being a premier and integrated company in the aluminium value chain with strategic presence in the mining, metals, and energy sectors both domestically and globally, a new corporate strategy was developed to meet the challenges of an ever-evolving market. By 2032, revenue and profit are expected to have increased by multiples of that figure, according to the company's strategic plan. The company is responding to the government of India's ambitious programmes by harnessing renewable energy as a responsive corporate entity. The company has already put into operation 198 megawatts of wind power, and another 25 megawatts are on the way.
As a result, the company is moving ahead with a number of brownfield and greenfield expansion projects, including the 1 MTPA 5th stream refinery project currently underway at the existing Alumina Refinery in Damanjodi (Brownfield), the development of Pottangi bauxite mines, the Utkal D&E coal mines in Odisha, and the establishment of 5 lakh TPA brownfield smelters and 1400 MW captive power plant in Odisha. In Gujarat, the company is partnering with Gujarat Alkalies & Chemicals Limited (GACL) to build a caustic soda plant, while in Odisha, it is partnering with NINL to build a CT Pitch factory. NALCO is a well-known brand in Eastern India's industrial sector. In keeping with its mission, the company is leading the way in reshaping Odisha's industrial landscape. Angul Aluminium Park Private Ltd (AAPPL) is a joint venture between the Odisha Industrial Infrastructure Development Corporation (IDCO) and the company to promote aluminum-related upstream and downstream products. In addition, Utkarsha Aluminium Dhatu Nigam Limited (UADNL), a joint venture with MIDHANI, was founded to produce high-end aluminium alloys for the defence and aerospace industries. NALCO has launched Khanij Bidesh India Limited (KABIL) alongside HCL and MECL to purchase important mineral assets in international locations and supply in India. The Company is attempting to recover iron concentrate from red mud and Gallium from discarded liquor as part of an endeavour to turn waste into money. Smelter's effluent water is now free of fluoride pollution thanks to a nanotechnology-based de-fluoridation process that was successfully commissioned by the company. LITERATURE REVIEW: Ashvin Kumar is a doctor of medicine (2011) It took about 46 years for the commercial viability of Aluminum production, despite the fact that its existence was first proved in 1808. The ore's aluminium was extracted after a long period of study. In terms of mass, aluminium is the third most abundant element on the planet. It is also the second most often used metal in the world, after steel, in terms of volume. For the production of aluminium, the National Aluminum Company (NALCO) was hired. In total, it was capable of generating 0.218 million tonnes of crude oil per year. India is the fifth-largest producer of aluminium in the world, with a production capacity of 2.7 millio tonnes, accounting for about 5% of the world's total aluminium output. A Bauxite resource of 3 billion tonnes is also found in India. Both Prabir Kumar Bandyopadhyai and Abhishek Sinha participated in this event (2014), An urgent need exists to resuscitate the Indian metal sector. The profitability of a company is primarily influenced by two factors: productivity and the dynamics of the market. Researchers in India's metal sector have attempted to investigate productivity and associated issues. These studies, on the other hand, do not shed insight on the profitability and productivity of the companies studied. The primary activities of the Indian aluminium industry include min-
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