Cursed with an overabundance of alumina production, India’s Hindalco Industries Ltd is considering selling the excess to overseas buyers.
According to comments made by Hindalco’s chairman Kumar Mangalam Birla, Utkal Alumina International Ltd has been producing more of the aluminium precursor than the company can use, forcing the firm to consider sales of it to outside buyers.
“We believe that (export of alumina) would be an attractive proposition and is something that the company is studying at this point in time,” explained Birla to shareholders in attendance at the company’s annual general meeting.
In the just-completed fiscal year, Hindalco’s alumina production totaled 2.9 million metric tons, while its overall primary aluminium production totaled 1.3 million metric tons.
According to the company, the alumina output cascading from the Utkal unit is expected to increase due to the continuing de-bottlenecking program being carried out at the site.
Hindalco is no stranger to the export game, either. In the previous fiscal year the firm’s domestic sales dropped by 2.7 percent to ₹230 billion (US$3.6 billion), its overseas sales rocketed skyward by 25.6 percent to ₹159 billion (US$2.5 billion), accounting for fully 40 percent of the firm’s standalone sales total.
Birla also revealed to the audience that his company would concentrate upon debt reduction in the current fiscal year. Hindalco expects to see a ₹8-billion (US$125 million) drop in interest expenses over the course of the coming twelve-month period.