The mining giant Vedanta is planning an expansion in the product portfolio of its aluminium producing wing Vedanta Aluminium and Power.
Vedanta’s Flat Rolled Products Project
The project plan is to set up an aluminium flat-rolled products plant with an estimated capital expenditure of Rs 2500 crore. The plant will be situated in either of Vedanta’s two aluminium producing facilities in Jharkhand or Odisha.
The product range under Flat Rolled Products or FRP’s include foils, sheets and plates and are mainly consumed by automobile, aerospace and consumer durables sector among others. The capital expenditure for this project would be part of Rs 15,000 crore investment plan by Vedanta to increase its aluminium production capacity from the current 2 million tonnes to 3 million tonnes per annum in the next 3-4 years.
In a statement given to Economic times Mr. Ajay Kapur, CEO, Vedanta Aluminum and Power, stated “We are looking at producing rolled products and entering the sheets market. For this, we are currently talking to Chinese players to see if we can bring a plant here.” Talking further about the project he said, “This project needs some CapEx. It also gives you high margins and therefore we are investing in R&D to move ahead in that direction.”
Existing Manufacturers of Flat Rolled Products
Already existing manufacturers of FRP’s include the Government enterprise National Aluminium Company Limited (NALCO) and Aditya Birla Group’s flagship Hindalco. Apart from the various FRP producing facilities in India Hindalco also owns a US subsidiary, Novellis, which is the world’s largest aluminium rolling company.