9.

Presently NALCO is accepting firm financial arrangements in form of advance and letter of Credit
considering that market is going to be more competitive in future the Company may consider accepting
a wider variety of financial arrangements other than advance and letter of Credit.
10. Opening of more stockyards at different strategic locations to cater to the small customers.
Depending on the requirement even consider setting up Inland Container Depots at central places like
Nagpur and Delhi which are well connected by road and rail.
11. Since the market has become very dynamic, to take advantage of market situation the company
should consider fixed price contracts in exports.
12. To expand the customer base in exports, start looking for new customer and enter into one-to-one
contracts with them with well-defined pre-qualification criteria.
6.0 Production Volumes to be handled
The projected production volume of alumina, aluminum and value added products to be handled after
the project implementation as per the expansion plan are indicated in the following two tables. Table 6
and 7 gives the quantum of alumina and aluminum which are to be handled in next 10 years.
Table 6 ( Ref Annexure W )

Projected production and sales of Alumina/Specialty Alumina

Year

2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20

Calined Alumina
Production
Export
1,875,000
2,074,000
2,161,500
2,249,000
3,224,000
4,074,000
4,249,000
4,249,000
4,249,000
4,249,000
4,249,00

940,000
7,171,600
1,249,400
1,315,560
1,882,190
2,214,210
2,000,240
1,506,510
1,000,170
878,920
878,920

Domestic Internal
Consun
10,000
925000
10,000
892400
10,000
902100
10,000
923440
10,000
1331810
10,000
1849790
10,000
2238760
10,000
2732490
10,000
3238830
10,000
3360080
10,000
3360080

Specialty Alumina
Production Dom

Export

23,706
26,000
26,000
26,000
101,000
126,000
126,000
126,000
126,000
126,000
126,000

20,200
25,200
25,200
25,200
25,200
25,200
25,200

23,706
26,000
26,000
26,000
80,800
10,800
100,800
100,800
100,800
100,800
10,800

Grand Total

1,898,706
2,100,000
2,187,500
2,275,000
3,325,000
4,200,000
4,375,000
4,375,000
4,375,000
4,375,000
4,375,000

Table 7 : ( Ref Annexure IV )

Projected production and sales of Aluminum
Year

Cast Metal
Production

2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20

435,000
425,000
420,000
426,000
599,000
853,500
1,054,000
1,271,000
1,519,500
1,582,000
1,582,000

Figures in MT

Roll
product
Sale
Domestic Export
283,000 152,000
276,000 149,000
252,000 168,000
256,000 170,000
247,000 352,000
362,000 491,500
482,000 572,000
500,000 771,000
520,000 999,500
509,000 1,073,000
509,000 1,073,000

25,000
35,000
45,000
50,000
50,000
50,000
50,000
87,500
100,00
100,000
100,000

Domestic
23,750
33,250
40,500
45,000
45,000
45,000
45,000
74,375
85,000
85,000
85,000

Export
1,250
1,750
4,500
5,000
5,000
5,000
5,000
13,125
15,000
15,000
15,000

Aluminum Alloy

Total metal

Prodn

Production

37,500
50,000
50,000
50,000
50,000
50,000
50,000

Sale
Domestic
37,500
50,000
50,000
50,000
50,000
50,000
50,000

Export
-

The table 6 and 7 ( as per new expansion plan, Ref production plan in Annexure IV ) above provide
aggregated volumes for both alumina and aluminium. However, both alumina and aluminium will
respectively have specialty and downstream products, the details of which are given in table 8 ( Rolled
product is already shown in table 7 ).
Market research is required to identify new specialty alumina and application areas. Since alumina and
chemicals are customized roducts, continous market development activities will have to be indetaken,
especially field testing of different grades with the existing and prospective customers for their
applications.

460,000
460,000
465,000
476,000
686,500
953,500
1,154,000
1,408,500
1,669,500
1,732,000
1,732,000

Value Added Products:

Table 8
Projected production and sales of Alumina/Specialty
Alumina
Year
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20

Specialty Alumina
Product ion Dom
23,706
23,706
26,000
26,000
26,000
26,000
26,000
26,000
101,000
80,800
126,000
100,800
126,000
100,800
126,000
100,800
126,000
100,800
126,000
100,800
126,000
100,800

Figures in MT

Expoet

Aluminium Alloy
Produc tion Dom

20,200
25,200
25,200
25,200
25,200
25,200
25,200

37,500
50,000
50,000
50,000
50,000
50,000
50,000

Export

37,500
50,000
50,000
50,000
50,000
50,000
50,000

No doubt. quality and consistency of Rolled Products (RP) will have to be improved before undertaking
any expansion activity but marketing needs to pay Special attention .RP require vigorous promotional
campaigns. Going down further into foil will result in much higher value Addison but for this the
company may go for joint ventures with experienced and establitad by brand building.
Presently detergent manufacturers are using STPP which is lower in price but has been banned in
developed countries on environmental pollution ground Zeolite sales will improve only when detergent
manufacturers are made to substitute STPP. Before building up further capacity ,the company will have
to lobby with appropriate authorities to ban the use of STTP in detergents for environmental reasons.
For this, marketing and technical data will have to be collected that help convincing both the authorities
concerned as will as existing buyers of STTP and prospective buyer of zeolite.
7.0 Logistics augmentation
The supply chain for a company should be developed in advance considering the following
Factors.

Analysis Of Demand pattern region-wise and seasonal variation.