NALCO plans to invest Rs 16,500 cr in Indonesia

State-owned aluminium producer NALCO plans to invest Rs 57,903 crore by 2020 on expansion, including the setting up of two large aluminium smelters in India and abroad.

The Navratna firm would invest Rs 16,500 crore in Indonesia for setting up a 5 million tonnes (MT) smelter, with 1,250 MW power plant, a report of the Parliamentary Standing Committee on Coal and Steel said.

It added that the other smelter of the same size would be built in Western Orissa in two phases, with 1,260 MW power plant at an estimated investment of Rs 16,345 crore.

Besides, NALCO has plans to construct a new alumina refinery of 1.4 MT in Andhra Pradesh and 1,000-MW power project as independent power producer.

Both the projects would require an investment of Rs 10,600 crore, the report said, adding that rest of the amount would be spent on existing projects.

Company officials could not be reached for comments on NALCO's mega expansion plans.

In its vision document 2020, the company had said it is targeting a turnover of Rs 25,000 crore by then, with an annual aluminium production capacity of 1.7 million tonnes.

The company had also said that it will create three wholly-owned subsidiaries -- NALCO Metals, NALCO Power and NALCO International -- for entering other non-ferrous metals and energy businesses.

The Orissa-based company, with an alumina refinery capacity of 2.1 million tonnes per annum (MTPA) and an aluminium smelter of 4.6 MTPA, has recently completed its second phase of expansion at an investment of Rs 4,402 crore.

Besides, it also has Bauxite mining capacity of 6.3 MT and generates 1,200 MW captive power. Source: Economic Times

Bajaj to invest $150 mn in Indonesia plant

Bajaj Auto, India’s second-biggest two-wheeler maker, may set up an assembly plant in Indonesia in a bid to increase presence in Southeast Asia and gain from the lower duty structure in the world’s third-largest market.

Known for its Pulsar brands of bikes, the Pune-based firm is looking to spend $150 million (Rs 675 crore) to set up the facility.

The plant, which would be the company’ first major facility outside India, shall be ready by late 2013, according to Tomotaka Ishikawa, president and director of PT Bajaj Auto Indonesia (PT BAI). The proposal would be approved if the Indonesian unit keeps monthly sales above 3,000 units.

“My target is that by the end of the year we will be convinced to have a complete knock-down operation (in Indonesia),” the Jakarta Post quoted Ishikawa as saying. The factory is likely to produce 100,000 units a year.

However, it’s not clear whether Bajaj Auto would upgrade its existing facility, where it assembles semi-knocked down (SKD) parts, or set up a new one. Bajaj Auto declined comment.

PT BAI, 98.94 per cent owned by Bajaj Auto, assembles and markets Pulsar 135, 180 and 220. The loss-making subsidiary has localised some of the assembly operations to bring down Customs duties. It would continue to pursue the localisation of sub-assemblies further this financial year.

“The Customs duty rates for SKD and CKD (completely-knocked down) operations have been reduced by five per cent from December 2010 by the Indonesian government. With the addition of Pulsar 135 and Pulsar 220 to the model line-up and increased local sub-assembly operations, the subsidiary would be in a position to reduce its losses in 2011-12,” stated Bajaj Auto in its annual report. PT BAI has accrued a loss of Rs 92.17 crore since it began operations in 2006-07. Last year, it posted a loss of Rs 9.35 crore.

The Rajiv Bajaj-led company has been looking to expand its operations outside India, with products which have been successful in the domestic market. The Indonesian two-wheeler market shares a variety of similarities with the Indian market. Last year, the firm sold 81 per cent more bikes in Indonesia at 21,586 units, compared to 11,954 units in the corresponding previous period. Source: Business Standard