India 07-08 Aluminum Output Seen Up 8%

India will likely produce around 1.23 million tons of primary aluminum in the year ending March 2008, up 8% on year on the
back of capacity expansion by the country’s main producers, a senior industry official said.

Hindalco Industries is expected to raise its production by 36,000 tons in 2007-08 to 478,000 tons, while the Indian units of
Vedanta Resources are expected to produce around 406,000 tons of aluminum this year.

State-run National Aluminum Company, another big producer in the country, is expected to produce around 355,000 tons of aluminum this year.

“All of this will add to an 8% increase in India’s total primary aluminum production,” D. Bhattacharya, chairman of the Aluminum Association of India and managing director of Hindalco Industries Ltd. said in an emailed interview.

Hindalco’s production will rise on the back of capacity expansion at its smelter in Hirakud in the eastern Indian state of Orissa while capacity expansion in Vedanta Resources’ smelter in Korba in Chhattisgarh will push up its output.

The rise in output at a time when local demand growth has been slow will lead to an increase in total aluminum exports from
India, Bhattacharya said.