Tuesday, 17 July 2012

Nalco in talks to operate a 2.25 lakh-tonne smelter unit in Indonesia

17 JUL, 2012, RAKHI MAZUMDAR, ET BUREAU
KOLKATA:
National Aluminium Company (Nalco) has joined the fray along with a clutch of Japanese firms to operate a 2.25 lakh-tonne smelter unit in Indonesia, said sources close to the development. Talks are on between Nalco and the Indonesian government on a range of options, including picking up a stake or operating Indonesia's Ashan Aluminium (Inalum).

For Nalco, which is investing in a thermal power plant and a smelter in the south Asian country, the latest development is part of a strategic move to integrate its business plan in the country. The state-owned aluminium major could well be the latest in a growing list of Indian companies venturing into Indonesia.

Nalco has already made a detailed presentation to a cabinet committee in Indonesia highlighting plans for its growth. When contacted, a senior Nalco official said the proposal is in its early stages.

"We have submitted a proposal to the Indonesian government to get associated with Inalum. However, we are yet to hear from them. It depends entirely on the Indonesian government whether they will offer Nalco part or full equity in Inalum." If it works out, the deal to acquire the company could be worth close to Rs 8,000 crore.

In recent times, many top companies have flocked to Indonesia to start businesses. "The country's attractiveness as an investment destination for Indian companies rests on three pillars. Its 250 million-plus population with a 6.5% GDP growth rate makes it a strong consumer goods market," said Prakash Subramanian KV, Managing Director and Head-Global Markets, Standard Chartered Bank, Jakarta.

No comments:

Post a Comment