PTI reported that Jindal Aluminum will invest INR 800 crore to set up 2 plants to make aluminum sheets and foils and produce powder coated and anodized materials.
Mr Sitaram Jindal CMD of Jindal Aluminum said that "We are setting both the plants in Karnataka. Work on the first plant, near Bangalore, for manufacturing of aluminum sheet and foils has already started. We are investing INR 500 crore out lay."
The second plant would also come up near Bangalore for production of powder coated and anodized materials with an investment of INR 300 crore. However, the ground work on the plant would start only after the first plant gets operational in April next year.
While aluminum sheet and foils are used for packaging applications, including food and beverage containers; powder coating is a durable method of providing a decorative finish to metals. Anodizing is an electrolytic passivation process used to increase the thickness of the natural oxide layer on the surface of metal parts.
Jindal Aluminum claims to be the largest manufacturer of aluminum extrusion profiles in India commanding around 25% market share. It has 70,000 tonnes per annum installed capacity at its lone plant in Bangalore. However due to poor demand, the company could only produce 55,000 tonnes aluminum extrusion profiles last fiscal.
Mr Jindal said that the aluminum sheet and foil plant would have the capacity to produce 50,000 tonnes a year and provide direct jobs to 700 people. Jindal Aluminum would spend INR 300 crore from internal accruals and the remaining from a foreign bank to fund the project. It would not require any funding requirement from outside for the plant to produce powder coated and anodized materials. Cash generated from its existing business would take care of that.
He said that "We have land in possession for the second plant. It will likely to go on stream by June to July 2013. There was a huge demand for such products overseas. The company had clocked INR 800 crore turnover last fiscal and after the operationalization of these plants, its topline would likely to go past INR 2,000 crore by the end of 2013 to 2014 fiscal.
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