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The Madras Aluminium Company,
popularly known as Malco, was incorporated in 1961 in
technical and financial collaboration with Montecatine of
Italy as an integrated aluminium plant in the state of Tamil
Nadu. Malco started commercial production in 1965. It
continues to be the only integrated primary aluminium
manufacturing company in Southern India. In accordance with
the BIFR scheme, in February 1995, Malco was taken over by
Agarwal Associates, the promoters of the $1.5 billion Sterlite
group.
Malco has its own bauxite mines at
Yercaud (Salem district) and Kolli Hills (Namakkal district).
The company has a captive power plant (CPP) of 75MW (3 x 25
MW). The CPP has state of the art technology with an enviable
plant load factor of about 100 per cent.
It is one of the five integrated
primary aluminium producers in India, with an alumina refinery
capacity of 55,000 tonne per annum (tpa) and an aluminium
smelter capacity of 29,500 tpa.
Malco acquired 38.8 per cent stake
in the Rs 450 crore India Foils (IFL) of the Williamson Magor
group. The IFL board allotted 11 million equity shares of Rs
10 each at Rs 23.50 and 10 million warrants entitling the
shareholders for one equity share convertible at Rs 23.50 per
share to Malco. After the conversion of warrants, Malco will
have an equity stake of 55 per cent in IFL.
Malco is proposed to be merged
with Sterlite Industries in line with the Sterlite group`s
restructuring programme wherein the group will be organised as
separate companies on the basis of businesses, that is telecom
and non-ferrous mining and metal businesses.
To enhance its business position
in the domestic aluminium industry, the company proposes to
implement a brown field expansion project at Mettur.
Domestic demand for metal is
expected to grow moderately for the next two-three years on
account of expected growth in the construction,
transportation, and consumer durable and packaging sector.
Also, the increasing disposable income in the hands of the
growing Indian middle class and the advent of newer
applications strengthens prospects of the domestic aluminium
industry.
Malco, an integrated player in the
domestic aluminium industry is well placed to derive
advantages of any economic upturns or favourable metal price
variations.
PROCESS IN MALCO
Madras Aluminium Company Ltd. (MALCO)
is a vertically integrated operation with its own captive
Bauxite Mines, Refinery and Smelter, producing primary
aluminum and semi-finished products. It also has a
state-of-the-art 75 MW captive power plant.
Malco's mines are located at Kolli Hills,
Yercaud and Kodaikanal in Tamilnadu. At these mines, Malco
places great emphasis on safe-guarding and enhanching the
greenery in the neighbourhood. Malco's capability is
reflected in the fact that it produces high grade aluminium
with low grade bauxite. Malco has Tamilnadu's only aluminium
smelter.
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MALCO operations can be
categorized into four major activities:
- Mining
- Refining
- Smelting
- Captive
Power Plant
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