‘Demand for aluminium will shoot up’
While Vedanta Resources is eyeing a ramp-up of its aluminium value-added products profile, its arm Bharat Aluminium Company (Balco) is gearing up to ensure the best of the world’s products and technology are manufactured in India, using indigenous resources and skills. ABHIJIT PATI, chief executive officer of Balco, speaks to to elaborate on the plan. Edited Excerpts:
As Indian firms face challenges from foreign exports of aluminium, how is Balco placed in terms of competition, given it is a fully integrated plant?
As an integrated plant, we have reduced costs, power consumption, and water in our system, in the past years. Balco is a benchmark company in the field of power consumption, as compared to other smelters and pot lines in India and West Asia. The ongoing projects will help it to reach global standards. Our products achieve 99.8 per cent quality assurance and our inclination towards being 100 per cent value-added products company will further help us in strengthening our competition.
How do you plan to strengthen company’s value-added products (VAP) portfolio?
In an attempt to bolster the aluminium industry and protect the domestic market from high imports of aluminium, Vedanta’s Balco unit came up with the two most successful products, to cater to India and global markets. The products include primary foundry alloys (PFAS) and Flip coils. Over the years, Balco has emerged a leading aluminium producers in India, with its steadfast production of VAPS that include wire rods, flip coils, rolled products, and PFAS.
We are exploring new products and the work is in progress.
Can you elaborate on innovation being done in the range of products?
Balco made a bold move by launching primary foundry alloys, the most used variant, into the market to mainly cater to the making of alloy wheels for international and domestic automotive industries, and to challenge all odds of an importdependent nation. Geared with the best-in-class technology of Befesa Cast Bar Technology, Balco has now created a niche for itself among major Automobile players.
The next feather on cap for Balco was the production of Flip coils. Used by the steel sector during preparation of the molten metal, flip coil is used of de-oxidation of steel.
With the Government’s emphasis on infrastructure growth, how do you see the growth of aluminium as a metal?
I am happy that ‘Make in India’ is set to invest in infrastructure growth. Growth of aluminium will be influenced from this investment. At present, the auto sector and real estate market may not be doing well. However, as soon as the phase passes, demand for Aluminium will only shoot up.
This will make way for more of value-added products to fulfil the demand of the metal in making vehicles and construction material. Further, the usage of aluminium in power transmission cables is another area where we can see the utilisation of the green metal for better energy transmission.
With flat-rolled product consumption seen rising, how is Balco gearing up to meet the challenge?
The company is on a major expansion spree to enhance capacity. The consumption of flat-rolled products will increase over the years. The rolling mills in our Balco plant are doing well.
We are planning to increase roll product capacity from 72 kg tonnes (KT) to 200 KT under our expansion plan. Balco is, at present, operating at 571,000 tonnes of annual capacity.
In 2-3 years, we aim to take it to 1 million tonnes, and subsequently to 3 million tonnes annually.