July 25, 2008

MALCO eyeing INR 300 crore CAPEX plan

BS reported that Madras Aluminum Company Limited is embarking on an INR 300 crore expansion and modernization plan at Methur Dam in Salem district of Tamil Nadu.

Mr Suresh Rathi CEO of Madras Aluminum said that the expansion and modernization would comprise three components. He added that "It would add a power generation unit with a 25 MW capacity to the existing 75 MW power plant at the MALCO complex. The new pant would commence power generation by December 2008."

Mr Rathi said that as part of the second component, MALCO would enhance the alumina production capacity to 120,000 tonne, from the present 85,000 tonne a year. This expansion will crystallize by early next fiscal. He added that "Besides, it will step up the metal production capacity to 65,000 tonne a year, from the existing 40,000 tonne within the next 10 months."

Established in 1965, MALCO is the only integrated primary aluminum metal complex in south India. It has already identified new mines in the captive area of Kiolli, Yercaud and Poondi Hills in Tamil Nadu to excavate more bauxite deposits.

Of the 3,300 tonnes of wire rods that MALCO manufactures in a month, about 500 tonne are exported to countries like Canada, Sri Lanka and West Asia. It registered an INR 535 crore turnover during July 2006 to March 2007 period and expects to close the current financial year with INR 500 crore.