Nalco puts expansion, diversification plan in fast mode
Bhubaneswar: Nalco today put expansion, diversification into mining and other areas on top priority, besides focusing on exploring new and virgin markets, to tide over difficult phase faced by metal sector due to sluggish domestic and global markets
“Despite sluggishness in domestic and global markets, Nalco is maintaining profitability. However, turnover of the company needs to be raised and for this diversification is essential,” Nalco’s new CMD Tapan Kumar Chand told reporters soon after taking over charge here.
Diversification should be undertaken both horizontally and vertically to ensure speedy growth and increase turnover, he said, adding, the company can diversify into power, mining and other areas.
While, expanding activities in mining would further strengthen Nalco in view of its experience in the sector, the CMD said it (Nalco) needs to acquire new mines as raw materials hold key to industrial activities.
In view of the difficult period faced by metal industries, both ferrous and non-ferrous units need to focus on volume and price variance in order to augment their realisation, he said.
All efforts would be made to push the Navaratna PSU to new heights and emphasis should be laid on value-based and system-driven management, a strong business sense at all levels, Chand said.
While special attention should be made to make Nalco products cost-competitive in international market, steps should be taken to explore new and virgin markets through an aggressive marketing strategy, the CMD said adding market sentiments should also be kept in mind.
“Unless we make a strong international presence, it will be difficult to survive and grow,” he said, recalling how East African markets were explored by RINL, where he was Director (Commercial).
New markets, expansion of customer base, product diversification, high end product and similar steps are some of the initiatives need to be taken immediately to make Nalco tide over the existing market blizzard,” he said.
Referring to cost competitiveness by cost reduction, Chand said cost can be cut at stages like procurement, consumption and waste segment. Reduction in operational cost would pave way for profitability.