1.0 Industry Structure and Developments:
1.1 Alumina:
During the year 2024, total World Production of Metallurgical Grade Alumina (MGA) was 139.456 million tonnes, registering an increase of about 1.83% compared to 136.951 million tonnes produced during 2023. Global Alumina consumption during 2024 was 140.532 million tonnes as against 136.725 million tonnes consumed during 2023, exhibiting a YoY increase of 2.78%. China was the major contributor in both production and consumption, having 59.76% share in production and 59.00% share in consumption of Alumina. World metallurgical grade alumina demand is expected to be about 142.92 million tonnes in 2025, representing an increase of 1.70% compared to the previous year. Overall, the global Alumina market is expected to remain in surplus of 0.53 million tonnes in 2025 with an expected production of 143.45 million tonnes.
World bauxite production during 2024 was around 385.30 million tonnes, which is 1.20% higher than 380.73 million tonnes produced in 2023. Global bauxite production during 2025 is expected to be around 407.93 million tonnes. Guinea has been the major supplier of Bauxite followed by Australia, Brazil & Malaysia as Indonesia has maintained its stance to ban Bauxite export/supplies from June, 2023 in support of their downstream mining industry.
1.2 Primary Aluminium:
World production of Aluminium during the year 2024 was about 72.777 million tonnes, registering a rise of 2.94% compared to production figures of 70.697 million tonnes achieved in 2023. At the same time, worldwide consumption of Aluminium rose 3.70% from 70.202 million tonnes in 2023 to 72.799 million tonnes in 2024. The market, thus, registered a deficit of around 0.022 million tonnes during 2024. China was the largest producer as well as consumer during the year, contributing 59.18% share (i.e. 43.06 million tonnes) of the world production and 61.77% (i.e. 44.96 million tonnes) of the world consumption of Aluminium. China registered a production growth of 3.57% vis-a-vis a consumption growth of 4.85% during 2024 whereas the rest of the world exhibited 2.05% production and 1.91% consumption growth during the same period. During the financial year 2024-25, consumption of Aluminium in India increased by 11.09% from 4.95 million tonnes to 5.50 million tonnes. In 2024, global aluminium demand saw positive growth across several key consuming regions, including China, India, Europe, Central & South America, Mexico, Taiwan and Thailand, while Japan, Turkey and France experienced a decline.
Global aluminium metal stocks at the end of 2024 registered a slight decline of 0.22%, closing at 9.769 million tonnes compared to 9.791 million tonnes in 2023. Looking ahead to 2025, the market is projected to experience a surplus.
The supply disruption drove alumina and aluminium prices up in 2024. These disruptions included production curtailments, temporary operational halt at mines, reduced production capacity at refineries and operational disturbances which drove alumina price to record high in 2024 to averaged USD 502 per tonne. However, by early 2025, alumina prices have softened due to increase in alumina availability on account of improved operating rates, smelter curtailments. Furthermore, upcoming new capacity from Indonesia, India and China, restoration of disrupted supplies and increased availability of alumina cargo from Atlantic regions were some of the reasons behind the plunge in alumina prices.
High alumina prices, sanction on Russian Aluminium by UK and the US, concerns over the EU?s proposed import restrictions on Russian aluminum and China?s economic policy measures helped push aluminium prices to average USD 2,526 per tonne during the financial year 2024-25. However, the LME aluminum price remains volatile due to fluctuating trade policies and macro-economic data.
The average aluminium prices during financial year 2025-26 is projected to be about USD 2,450 per tonne against previous year of USD 2,526 per tonne due to decline in world end-user aluminium demand, lacklustre Chinese stimulus, lower alumina prices, US-tariffs, likelihood of end to Ukraine-Russia war and further development in trade tariff talks shall provide direction to Aluminium prices in the forthcoming year.
2.0 Strengths and Weaknesses:
2.1 Strengths:
Aluminium stands as a cornerstone of modern industry, being the commonest metal in Earth?s crust and the third most plentiful chemical element on our planet, after oxygen and silicon. Its remarkable abundance is matched by its utility, making it the second most popular metal for manufacturing, surpassed only by iron and steel. From essential utensils to advanced spacecraft, aluminium?s application spans a multifaceted array of areas. Its novel properties, including exceptional malleability, ductility and corrosion resistance, firmly establish it as a metal of choice across diverse industries.
India?s prominent position as one of the world?s largest bauxite producers provides a significant strategic advantage to our domestic aluminium industry. As the primary source of aluminium, bauxite is crucial for the production of alumina, which is subsequently processed into aluminium metal. With over 50% of the nation?s substantial bauxite reserves concentrated in the eastern state of Odisha, we benefit from a stable and consistent supply of this vital raw material. This robust domestic availability not only reduces our dependency on imports, but also translates into substantial cost advantages and enhanced competitiveness for Indian primary aluminium manufacturers in the global market.
At about 4.24 million tonnes per annum (mtpa), India has the second-largest aluminium production in the world after China. India being the third biggest consumer in the world is expected to approximately double its aluminium demand from 5.5 million tonnes in 2025 to 9.0 million tonnes by 2033. However, India?s per capita Aluminium consumption is only about 3.39 kg compared to the world average of12 kg. This provides opportunity for growth of aluminum industry. The industries that require aluminium in the country mostly include power, consumer durables, transportation, construction and packaging etc. with heavy investment by Govt. of India in infrastructure including railways and airports, housing construction and the automobiles industry. India?s ambitious development plans will significantly impact the demand for aluminium. Additionally, the recyclability of aluminium in its value chain provides significant advantage in reduction of greenhouse gases thereby enabling environmental sustainability.
2.2 Weaknesses:
India can significantly boost its export earnings by expanding its production capacity of downstream aluminium products. Although primary aluminium production in the country has increased significantly over the last decade, the rate of value addition inside the country remains low. This can be achieved by development of new products/applications through investments in R&D activities, which are presently being carried out at a limited scale. Further, lack of an extensive and reliable logistics network for efficient supply chain management also acts as an impediment.
The primary aluminium industry in India is highly dependent on global market conditions and prices which is impacting the bottom line of manufacturers. In the recent years, the volatility of aluminium prices in the global market has had a significant impact on the Indian aluminium industry. The Indian aluminium industry needs to focus on developing innovative ways of reducing the cost of production, such as using renewable energy sources and increasing operational efficiency. India also encounters high outflow of precious foreign exchange from the country on account of import of Aluminium Scrap.
India being one of the significant producers of aluminium in the world, the production of aluminium in the country is primarily dependent on traditional sources of energy such as coal to fire power plants. Considering a limited reserve of coal and the pollutant nature of coal-fired power plants impacting on the environment, the production growth concern remains a perennial weakness.
In conclusion, the excessive dependence on traditional energy sources for aluminium production in India is a significant challenge that needs to be addressed. The use of new technology in refining and smelting coupled with the switch to renewable energy, nuclear energy, hydrogen based energy plants and utilization of carbon capture systems can help reduce the environmental impact of aluminium production, promote energy security and mitigate health hazards thereby making Indian aluminium sustainable in the global market. Considering the process requirement for production of aluminium, continuous supply of renewable energy in India is a challenge.
3.0 Opportunities and Threats:
3.1 Opportunities:
Global aluminium demand (primary and secondary) is expected to increase by almost 40% by 2030. Therefore, opportunity lies with Indian primary producers to ramp up capacity to meet the global demand growth. Transportation, construction, packaging and the electrical sectors are the four key sectors that will steer demand, accounting for 75% of the total metal required. China, India, Middle-East, North America and Europe are the four regions that shall account for more than 90% of the additional aluminium required globally.
The highest growth in terms of absolute demand is expected to come from the transportation sector, driven by decarbonization policies and the shift from vehicles powered by traditional fossil fuels to electric vehicles (EVs). This increasing adoption of EVs will significantly boost aluminium consumption in the automotive industry due to aluminium?s lightweight properties, leading to higher demand in areas like battery enclosure and battery foils etc. Furthermore, advancement in battery technologies, such as development of aluminium-air batteries, could increase demand in aluminium requirement.
India?s transit to clean technologies, in response to the urgent need for climate action and sustainable lifestyles, with a paradigm shift to a ‘Net Zero? economy shall be steered by aluminium, catering to the emerging demand for clean energy solutions, green technologies and sustainable systems. Based on the International Energy Agency?s projections for a sub-two degrees global warming scenario, consistent with the Paris Agreement (Beyond 2?C Scenario or B2DS), demand (including recycled aluminium and scrap) could increase to around 170 million tonnes by 2050 which provides opportunities for primary aluminium production expansion both greenfield and brownfield.
In the electrical sector, the transition towards green energy sources will strengthen the sector?s demand for aluminium. Consumption of aluminium in solar power projects through alliances with designers and manufacturers can be key to increase aluminium demand. In addition to this the need for conductor cables for power transmission & distribution is envisaged to increase given the GoI Revamped Distribution Sector Scheme (RDSS) and National Electricity Transmission Plan 2032.
In the construction sector, extensive infrastructure development plans in the construction of new airports, railways, highways, smart cities and other projects require aluminium due to its lightweight, durability and resistance to corrosion. The Indian government?s ambitious plan focusing on the infrastructure development through various initiatives like; Bharatmala Project, Dedicated Freight Corridors and Vande Bharat Express transportation, the Sagarmala Project etc. aims to enhance infrastructure and reduce logistics costs. Urban infrastructure initiatives such as the Smart Cities Mission and Pradhan Mantri Awas Yojana are transforming city landscapes and addressing housing needs thereby providing impetus to aluminium consumption.
In the packaging sector, the increasing emphasis on sustainable packing presents substantial growth opportunity for the Indian aluminium market. Aluminium is highly valued for packing application such as; cans, bottles and foils due to its recyclability and effectiveness in preserving product quality and freshness and with increasing urbanization, the consumer demand for eco-friendly packaging option provides ground for growth.
Furthermore, rise in the "green aluminum," produced with lower carbon emissions, is expected to see higher demand due to growing sustainability initiatives. Continuous new product development across various sectors, coupled with dedicated research and development efforts, will unlock novel applications for aluminum. The creation of new aluminum alloys with enhanced properties will cater to specialized needs and potentially replace heavier materials, contributing to an increase in aluminium demand.
The Aluminium industry has witnessed a technological evolution with big players marching to industry 4.0 objectives altering their production methods to include automation, the Internet of Things (IoT) and Artificial Intelligence (AI), thereby improving process efficiency, reducing energy consumption and minimizing waste. Adoption of industry 4.0 shall transform aluminium plants into smart plants producing smart and sustainable aluminium metal, contributing to a significant rise in overall aluminium demand.
3.2 Threats:
The aluminium industry, is energy-intensive which poses a significant challenge. Stricter environmental regulations necessitate substantial investments
in cleaner technologies and waste management. The industry also faces intense competition from lower-cost imports, logistics and infrastructure issues,
including supply chain disruptions caused by geopolitical events, production problems and logistical challenges, thereby causing delays and increasing costs.
Some of the important threat to the aluminium industry is elucidated below:
a) Trade tariff measures by the United State and countermeasures by its trading partners shall have significant impact on the alumina and aluminium industries. The United States, under the continued policies, has maintained and even expanded tariffs on aluminium imports. The US has imposed a 50% tariff (Section 232) on both primary and downstream aluminium products from India from 04.06.2025, doubling the earlier 25% duty introduced in February, 2025. In an attempt to curb Russian oil imports by India, US imposed punitive tariff taking the total tariff on Indian exports to 50% excluding aluminium. This sharp hike will make Indian aluminium products more expensive in the US market, threatening shipment volumes and jobs, particularly in downstream industries such as the MSME sector. The US accounts for about 8.5 - 9.0% of India?s total aluminium exports. However, the higher duty increases the risk of surplus material being diverted back into the Indian market, potentially putting additional pressure on domestic prices. Furthermore, the specific impact of US tariffs on export potential of aluminium product line shall depend on the bilateral trade negotiation through BTA/FTA/CEPA initiated by Govt. of India with trade/economic business partners.
b) Guinea holds the world?s largest bauxite reserves and has become a crucial supplier of Bauxite. However, continuous concern about potential disruption to bauxite mining availability and export is caused by the country?s unstable political landscape. The bauxite prices have surged to record high due to perceived supply risks impacting the complete refining and smelting value chain. The market remains sensitive to any signs of instability or changes in policy from Guinea. Furthermore, Indonesian bauxite export ban has been impacting the market from 2023 with no perceived signs of improvement. This has kept pressure on global bauxite supply and prices, particularly for major importing regions like China.
c) As the world shifts towards greener practices, decarbonising and sustainable aluminium production is poised to become the foremost focus on the supply side. The global aluminium industry is set to prioritise achieving Net Zero and carbon-neutrality, making it a central driving force in the sector. Introduction of Carbon Border Adjustment Mechanism (CBAM) - EU and ETS of many developed economies with the aim of reducing carbon emission, poses serious threat to the smelters in the developing economies. If a carbon pricing mechanism will be implemented and companies will likely need to purchase ETS certificates to account for embedded carbon emissions in their exported goods, which pose a pricing and profitability risk to Indian Aluminium exporters, since carbon-emission intensity for Indian Primary aluminium players remains high, as compared to the world average, at present.
d) Beyond environmental and economic threats, the aluminium industry also faces critical safety challenges. The high temperatures and hazardous materials involved in aluminium production processes inherently carry risks of industrial accidents. Enforcement of stringent safety protocols, rigorous training and proactive risk assessment within the industry are essential to protect workers and maintain the social license to operate.
In addition to the above, other perennial threats to the domestic Aluminium industry include potential downturns in the economy, fluctuations in global
prices/exchange rates and cheaper aluminium imports.
4.0 Segment-Wise Performance:
| Chemicals (Alumina) | Metal (Aluminium) | Un-allocable | Total | ||||
| Particulars No. | Rs. in crore | Share (%) | Rs.in crore | Share (%) | Rs.in crore | Share (%) | Rs.in crore |
| 1 Revenue from operation | 5,697.43 | 33.94 | 11,068.79 | 65.93 | 21.40 | 0.13 | 16,787.63 |
| 2 PBIT (Before exceptional items) | 3,263.44 | 45.36 | 4,056.15 | 56.38 | (125.52) | (1.74) | 7,194.07 |
| 3. Capital Employed# | 3,123.52 | 23.33 | 3,815.87 | 28.50 | 6,449.97 | 48.17 | 13,389.36 |
| 4. ROCE (%) (2/3) | 104.48 | 106.30 | (1.95) | 53.73 | |||
| 5. PBIT Margin (%) (2/1) | 57.28 | 36.64 | (586.42) | 42.85 |
#Capital employed under "Un-allocable Common" includes cash & bank balance at Corporate and assets of Wind Power Plants.
5.0 Outlook for Future:
5.1 International Outlook:
The Global Aluminium market is expected to grow at a CAGR of approximately 4.8% (Source: AL Circle, February, 2025). This growth shall primarily be driven by increasing demand from various end-use industries, including automotive, solar power, construction, packaging and electrical. The strong demand for electric vehicles (EV) and rooftop solar shall provide thrust to global primary aluminium demand. The Global primary aluminium demand rose by 3.3% in 2024 to nearly 72 million tonnes.
The strong demand from the EV manufacturing and other low emission technology sectors such as solar panel components and wind turbines is expected to boost global aluminium demand. The Solar power projects attracted huge global investment in 2024, with nearly 600 gigawatts of solar power
installed around the world. China, India, US and Brazil built record amounts of solar power, both at the utility and the rooftops. The rise in global primary aluminium production from expected level of 74 million tonnes in 2025 to 77 million tonnes in 2030 is likely to drive demand for alumina. The world alumina demand is projected to increase from 145 million tonnes in 2025 to 150 million tonnes in 2030. Furthermore, an expected rise in Chinese, Indian and Indonesian alumina production is likely to increase bauxite demand as well.
The aluminium sector operates within a highly globalized trade environment, making it especially vulnerable to geopolitical events. Current factors such as sanctions on Russian metals, China?s substantial influence on primary production, ongoing trade tariffs, the energy crisis in Europe and the general economic slowdown in major economies are dynamically reshaping international supply chains, creating an environment of potential price instability.
Overall, the global aluminium industry is poised for growth, driven by rising demand in construction, automotive and packing industries. However, it remains vulnerable to trade tariffs, potential geopolitical disruption, supply uncertainty, sustainability and regulatory pressure.
5.2 Domestic Outlook:
The domestic primary aluminium consumption in India demonstrated robust resilience throughout the financial year 2024-25, registering a significant increase of 12.5% year-over-year and reached 2.90 million tonnes. India?s total aluminium consumption, encompassing primary metal, scrap and imports, experienced substantial growth in the financial year 2024-25, reached 5.50 million tonnes, a 11.09% growth compared to the previous fiscal year. Domestic metal production reached 4.24 million tonnes, marking 1% increase over the previous year.
India is projected to remain the fastest-growing economy. As per RBI, India?s GDP growth outlook is expected to expand by 6.5% for the financial year 2025-26 and inflation is expected to moderate to 4.5% in the financial year 2025-26 from 5.4% in the financial year 2024-25. Indian Aluminium Market is
expected to grow at a CAGR of around 7.6% till 2030.
The key demand drivers for aluminium in India are Auto, Power, Electronics, Railway, Aerospace, Defence, Packaging and Solar energy. In addition to that the Indian Aluminium demand is expected to see healthy growth due to strong government infrastructure development plan, urbanization, growing focus on lightweight vehicles. The major consumption sectors in India are electrical (48%), construction (13%), automotive & Transport (15%), consumer durable (7%), machinery & equipment (7%), packaging (4%), other?s (6%). The demand for aluminum in India is expected to remain upbeat with the increasing use in new applications, such as electric vehicles and renewable energy technologies.
India has a projection to reduce carbon emissions and reduce oil import dependency by 2030. Hence, Government of India envisages faster adoption and promotion of EVs as a driver to achieve the objectives. India is targeting 30% overall (80% in 2W & 3W segments) penetration in EVs by 2030. Use of aluminium in EVs enable manufacturers to build vehicles that are more energy efficient and the lower weight translates into an additional 10-15% increase in efficiency and range, which in turn, shall drive higher EV adoption among consumers.
The Indian primary aluminium industry faces several critical challenges including rising import volumes, decrease in domestic primary market share and escalating production and logistical costs. Furthermore, global concerns like trade tariffs, supply chain disruptions, escalation of geo-political crisis and currency risk pose a critical concern. The industry?s sustainability is also affected by non-competitive energy costs and severe shortage of coal allotted to the Non-power sector. Corrective measures such as rationalization of duties, sustainability in supply of critical inputs etc. is expected to improve cost competitiveness of the industry, as well as attract fresh investment. India has sufficient domestic capacity to meet the country?s aluminium demand of about 5.5 million tonnes, thereby contributing to the country?s economic growth, development and wealth creation.
A snapshot of Aluminium Production, Domestic sales and Exports by Primary producers, along with Aluminium consumption in India, is tabulated hereunder:
| Description | FY 2024-25 | FY 2023-24 | Change (%) |
| Aluminium Production (?000 MT) | 4,236.59 | 4,192.98 | 1.04% |
| Aluminium Domestic Sales (?000 MT) | 2,485.29 | 2,211.48 | 12.38% |
| Aluminium Export Sales (?000 MT) | 1,750.86 | 1,986.15 | (11.85%) |
| Aluminium Imports of Metal / Products/Scrap (‘000 MT) | 3,012.31 | 2,737.13 | 10.05% |
| Total aluminium consumption (?000 MT) | 5,497.60 | 4,948.62 | 11.09% |
Source: (a) NALCO?s performance data, Primary Producers? data.
(b) CRU Aluminium Monitor.
(c) Ministry of Commerce and Industry, Export Import data bank.
6.0 Risk Management:
Your Company has implemented Risk Management Policy in compliance to the SEBI (LODR) Regulations, 2015 and the Companies Act 2013 and in alignment with leading risk management standards and frameworks i.e., ISO 31000:2018 Risk Management - Guidelines and COSO 2017 Enterprise Risk Management - Integrating Strategy with Performance and leading industry practices.
The Policy covers a three tiered governance structure with roles and responsibilities defined for units and functions for risk ownership, management for risk review and Board for risk oversight. A risk management framework has been implemented that lays down the process of risk identification, assessment, response planning, monitoring and reporting of risks. Risks are identified and monitored at a Unit or functional level. These risks have been prioritized and aggregated across Units and functions to define the Enterprise level key risks.
A cross Functional Management Level Committee or the Management Steering Committee has been constituted that reviews Enterprise Level Key Risks on a quarterly basis while, the Risk Management Committee that, has been constituted as per the SEBI (LODR) Regulations, 2015 requirements reviews risks on a semi-annual basis as per the regulatory requirement. The review includes status on risk profile, changes in risk circumstances, activities planned to manage risks better and analysis of external risk landscape.
A risk management tool has been implemented through which the risk management process and reporting is executed. Role holders such as risk owners and response owners undertake risk management activities through the tool.
7.0 Internal Control Systems and their Adequacy:
Your Company has a well-established and adequate system of internal control commensurate with the size and nature of its business. Your Company?s Internal Control System has been designed to provide for:
a) Compliance with applicable statutes, policies & procedures, rules & regulations and delegated authority.
b) Adherence to applicable Indian Accounting Standards and Significant Accounting Policies.
c) Proper recording of transactions and timely reporting.
d) Effective use of resources and efficient operations.
e) Safeguarding of assets.
As per Section 134(5)(e) of the Companies Act, 2013, the Directors have overall responsibility for ensuring that the Company has implemented system and framework of Internal Financial Controls, which are adequate and operating effectively.
Your Company has well-designed policies, procedures and guidelines in place to ensure control of its different areas of business operations and reporting.
This includes delegation of powers, various manuals, rules, policies and guidelines formulated by the Company from time to time. The approved policies, procedures & guidelines are effectively and responsibly being used while executing the business of the Company.
Your Company has developed & implemented an Internal Financial Control framework duly approved by the Audit Committee which includes internally entity level policies/processes and operating level standard operating procedures primarily aiming at bringing awareness amongst the officials dealing with affairs of the Company to ensure adherence of the policies, procedures, guidelines designed and put in place for effective control. This provides the Directors with reasonable assurance regarding the adequacy and operating effectiveness of controls concerning reporting, operational and compliance risks.
Financial Statements are prepared in compliance with applicable Indian Accounting Standards and based on the Significant Accounting Policies duly approved by the Audit Committee and the Board. These Policies are followed uniformly across the Company. The Accounting Policies supported by standard operating procedures are reviewed and updated from time to time. The Company uses ERP Systems as a business enabler and also to maintain its Books of Account. The Standard Operating Procedures and transactional controls built into the ERP Systems ensure proper recording and maintenance of records.
The systems, standard operating procedures and controls are reviewed by management from time to time.
Your Company has incorporated in its Internal Financial Control framework a detailed checklist covering all relevant areas affecting financial reporting to ensure adequate internal control over financial reporting.
Your Company has entrusted its internal audit function to external Chartered Accountants? Firms to carry out audits at all locations and functional areas.
The internal auditors have access to all the information in the organization which has been largely facilitated by implementation of ERP and e-office across the organization. The observations of internal auditors arising out of audits are periodically reviewed at an appropriate level and compliances are ensured.
Material observations of internal auditors are submitted to the Audit Committee for its review, analysis and advice to further strengthen the internal control system. Action Taken Report thereon is submitted to the Audit Committee periodically.
During the year, controls were tested and no reportable material weakness in design and effectiveness was observed as certified by Internal Auditors and as opined by Statutory Auditors in their report. Your Company recognizes that the internal control framework needs to be regularly reviewed and revised to ensure that such systems are reinforced on an ongoing basis in consonance with changing business environment.
8.0 Discussion on Financial Performance with respect to Operational Performance:
8.1 Financial Operation:
8.1.1 Revenue from Operation:
| Particulars | FY 2024-25 | FY 2023-24 | Change % |
| Export Turnover | 5,516.97 | 4,275.73 | 29 |
| Domestic Turnover | 11,145.24 | 8,794.39 | 27 |
| Turnover | 16,662.21 | 13,070.12 | 27 |
| Other Operating Income | 125.42 | 79.03 | 59 |
| Revenue from Operation | 16,787.63 | 13,149.15 | 28 |
Notes:
a) Increase in sales during the current year is mainly attributable to increase in price of Alumina and Aluminium. There is an increase of 66% in Alumina-FOB price from $358 to $595 in the current year. Average LME price also increased by 15% from $2,202 to $2,526. This has resulted in increase in average sales realization of Alumina and Aluminium from 29,689 to 50,580 per MT and 2,01,894 to 2,39,676 per MT respectively as compared to the previous year. With regard to volume, sales volume of Alumina has marginally decreased from 11,68,186 MT to 11,06,084 MT and Aluminium from 4,70,108 MT to 4,60,714 MT.
b) Other Operating Income during the year has increased from 79.03 crore to 125.42 crore as compared to the previous financial year. The increase in operating income is mainly on account of increase in rate of Renewable Energy Certificate from 270/- to 347/- during the year against previous year downward revision from 1,000/- to 270/- at the designated exchange.
8.1.2 Other Income (Non-operating):
| Particulars | FY 2024-25 | FY 2023-24 | Change % |
| Other Income | 357.01 | 250.71 | 42.40 |
Note: Other non-operating income is higher as compared to the previous year mainly on account of increase in interest income due to higher investible surplus and better yield.
Note: Other income includes operating income i.e. export incentive and incentive on the generation of renewable energy, scrap sales and non-operating income i.e. income from investment in FD, Mutual fund and other miscellaneous income.
8.1.3 Expenditure:
| Particulars | FY 2024-25 | FY 2023-24 | Change due to production (%) | Change due to price escalation (%) | Total Change % |
| Raw Materials | 2,063.32 | 2,791.89 | (4.68) | (21.42) | (26.10) |
| Power & Fuel | 3,165.94 | 3,547.70 | 3.46 | (14.23) | (10.76) |
| Employee Benefit Expenses | 1,786.47 | 2,034.65 | - | - | (12.20) |
| Stock Accretion/Depletion | (90.20) | (146.05) | - | - | (38.24) |
| Other Expenses | 2,297.46 | 2,048.05 | - | - | 12.18 |
| Finance Cost | 58.97 | 17.21 | - | - | 242.65 |
| Depreciation, Amortisation and Impairment | 727.58 | 749.65 | - | - | (2.94) |
| Total | 10,009.54 | 11,043.10 | - | - | (9.36) |
Notes:
(a) Decrease in raw materials compared to the previous year is primarily attributable to decrease in the price of Caustic soda, CP Coke, CT Pitch and Al. Fluoride.
(b) Decrease in Power & Fuel expenses compared to the previous year is mainly attributable to use of captive coal from Utkal-D Coal Mines. Expenses on excavation of coal is reported under other expenses. Prices of purchased Coal also decreased as compared to previous year.
(c) The decrease in Employee Benefit expenses is mainly attributable to superannuation of employees and reversal of excess provision towards performance related pay (PRP) of non-executive employees upon its settlement.
(d) The other expenses have increased by 12.18% as compared to the previous year mainly due to higher volume of excavation of coal from Utkal Coal Mines [20LMT to 28LMT], increase in royalty on bauxite due to higher LME price, expenditure on maintenance and Renewable Power Obligation expenses due to upward revision in price of REC from 270/- to 347/- against previous year downward revision from 1,000/- to 270/-.
(e) Finance cost have increased mainly due to interest on deferment of payment of advance tax during the year arising due to unexpected higher profit in Q3 and Q4, unwinding interest on mine closure obligation and obligation towards CCDs issued by one of our JV Company for which backstopping support is provided by the Company.
(f) Expenditure on depreciation during the current year is lower than the previous year. During the previous year, differential depreciation was provided due to change in date of commencement of depreciation on major spares based on opinion of EAC-ICAI.
Note: Other expenses includes repair & maintainence, consumption of stores and spares, other manufacturing expenses, general administrative expenses stock accretion and depletion, finance cost and S&D expenses.
8.1.4 Profit After Tax and Earnings Per Share:
| Particulars | FY 2024-25 | FY 2023-24 |
| Profit before Tax | 7,135.10 | 2,783.57 |
| Tax Expenses | 1,810.43 | 723.62 |
| Profit After Tax | 5,324.67 | 2,059.95 |
| Earnings Per Share (of 5/- each) | 28.99 | 11.22 |
8.1.5 Dividend Particulars:
| Particulars | FY 2024-25 | FY 2023-24 |
| Interim Dividend (%) | 160% | 60% |
| Final Dividend* (%) | 50% | 40% |
| Total (%) | 210% | 100% |
*Final dividend @ Rs.2.50 per share recommended by the Board for approval by shareholders in the ensuing AGM. 8.2 Financial Positions:
| Particulars | As at 31.03.2025 | As at 31.03.2024 | Change % |
| Assets | |||
| Property, Plant & Equipment | 6,799.04 | 7,020.24 | (3) |
| Capital work-in-progress | 4,934.67 | 3,961.49 | 25 |
| Intangibles | 949.20 | 362.49 | 162 |
| Intangible assets under development | 1.53 | 611.59 | (100) |
| Investments | 1,014.53 | 525.16 | 93 |
| Inventories | 1,908.83 | 1831.32 | 4 |
| Trade Receivables | 186.39 | 153.50 | 21 |
| Cash & Bank | 5,426.73 | 2,575.15 | 111 |
| Loans | 107.25 | 107.45 | (0) |
| Other Financial Assets | 86.37 | 96.21 | (10) |
| Current Tax Assets | 319.30 | 498.80 | (36) |
| Other assets | 1,388.64 | 1,675.20 | (17) |
| Total | 23,122.48 | 19,418.60 | - |
| Equity & Liabilities | |||
| Equity share capital | 918.32 | 918.32 | - |
| Reserve & Surplus | 17,127.44 | 13,653.34 | 25 |
| Deferred Tax Liability | 791.14 | 841.43 | (6) |
| Trade payable | 749.24 | 739.27 | 1 |
| Borrowings | 124.22 | 39.16 | 217 |
| Lease Liabilities | 57.52 | 57.22 | 1 |
| Other Financial liabilities | 1,963.47 | 1,900.58 | 3 |
| Provisions | 488.05 | 343.96 | 42 |
| Current Tax Liabilities | 39.66 | 53.98 | (27) |
| Other Liabilities | 863.42 | 871.34 | (1) |
| Total | 23,122.48 | 19,418.60 | - |
Notes:
(a) Decrease in Property Plant & Equipment is due to current year depreciation charged during the year.
(b) There is an addition in the capital work-in-progress due to ongoing 5th Stream Expansion at Refinery.
(c) Carrying amount of Intangible assets has been increased due to capitalization of expenditure towards NPV, compensatory afforestation etc. for Pottangi Bauxite Mine on registration of its mining lease during the current year.
(d) Intangible assets under development decreased due to capitalization of Pottangi Bauxite Mines.
(e) Increase in investment is mainly due to increase in investment in Mutual fund by 342.01 crore to meet its short term liquidity and recognition of deemed investment of 147.36 crore on account of Compulsory Convertible Debentures issued by Joint Venture M/s. GACL-NALCO Alkalies & Chemicals Pvt Ltd with backstopping support provided by the Company.
(f) Increase in trade receivables is due to credit sales against letter of credit which was pending for realization.
(g) The cash and bank balances increased on account of higher investible surplus. The cash and bank balance at the reporting date comprises of deposits with the bank as short term investments.
(h) Decrease in other financial assets is mainly due to reduction in net fund assets of gratuity trust resulting from lower rate of return and discounting factor.
(i) Current tax assets have been decreased due to income tax refund received during the year.
(j) Other assets have been decreased due to decrease in capital advances on account of adjustment against supplies and adjustment of claim for refund of additional royalty with royalty payable to Govt. of Odisha during the year.
(k) Reserve & surplus has increased on account of profit generated during the year.
(l) Increase in borrowings is due to higher amount of bills discounted on 31.03.2025.
(m) Increase in provision due to provision for Site Restoration obligation towards Utkal Coal Mines, higher provision for actuarial valuation due to increased OPD ceiling under Post-Retirement Medical Benefit Scheme & introduction of Post Retirement Honour Scheme and higher legal & constructive obligations for ash disposal made during the year.
9.0 Material Developments in Human Resources/Industrial Relations Front including number of people employed:
9.1 Human Resources: Employment of SC/ST/Ex-SM/PWD/LDP/Minorities in the Company as on 31st March, 2025 is given in Table:
| Group | Total No of Employees | SC | ST | EX-SM | PWD | LDP | Minority |
| Executives | 1,783 | 174 | 157 | 0 | 35 | 16 | 64 |
| Non-executives | 3,020 | 449 | 729 | 6 | 57 | 1,160 | 106 |
| Total | 4,803 | 623 | 886 | 6 | 92 | 1,176 | 170 |
9.2 Training and Development:
In order to enhance the functional and behavioural competency of employees and to align the individual need with the business objective of the organization towards increasing production and productivity, as well as to improve business culture in the organization, there has been an unstinting effort by your Company to impart skill and behavioural training to employees. In its commitment for corporate social accountability and good corporate governance, the company also imparts skill development training to contract workers, apprentices, students from managerial and technical institutes as well as for local population.
As regards regular employees, your Company has imparted training of 12,777 man-days during the year 2024-25. Further, 535 executives were given virtual as well as external training from Indian Railways Institute of Logistics and Materials Management, The Indian Express Group, ASSOCHAM, EIRC, Institute of Chartered Accountants of India, AJNIFM, The Central Vigilance commission, Indian Institute of Coal Management, Consultrain Management Services, Elekore Systems, IEX, ISTD, DIPAM - New Delhi, Viswamukthi, TSAF, HCL, ICAI, Department of Official Languages, International Institute of Business Intelligence, Ministry of Mines, NPTI, DPE New Delhi, Bloomasia, Mumbai, etc. on management development programme during 2024-25. In-house skill development programmes for Security personnel, contract labours and trainees were also organized for 3,840 Persons during 2024-25 across the Company.
Total 992 apprentice trainees were engaged during the financial year 2024-25 (upto 31st March, 2025) which is 20.65 % of employees strength of the Company as on 31st March, 2025 and 5.78% of total employees including contractual workers engaged by different contractors as on 31st March, 2025. Total 12,368 contract workers were engaged through different contractors in the month of March, 2025.
As per the gazette notification dated 25.09.2019, para-4 (ii), regarding the engagement of apprentice, ‘each establishment shall engage apprentices in a band of 2.5% to 15% of the total strength of establishment including contractual staff during the financial year?
As a part of corporate responsibility and industry academic interface, 1,379 students from different technical and management institutes across the country had undergone summer internship programme in various functional disciplines across your Company.
10.0 Significant Changes in Key Financial Ratios:
| Particulars | FY 2024-25 | FY 2023-24 |
| PAT/ Net worth | 29.51% | 14.14% |
| EBIT/ Net sales | 43.18% | 18.16% |
| EBIT/ Capital employed* | 53.73% | 23.11% |
*Capital employed = Net Fixed Assets (excluding CWIP) + Working Capital
11.0 Change in Return on Net Worth:
| Particulars | FY 2024-25 | FY 2023-24 | Change % |
| Operating Profit Margin* | 45.06 | 21.85 | 106.22 |
| Return on Net Worth | 29.51 | 14.14 | 108.70 |
*On Revenue from operation.
Note: Increase in operating profit margin on account of higher price realization of products due to increased LME prices and lower cost of production on account of decrease in input price. This has also resulted in higher return on Net Worth.
12.0 Safety, Occupational Health and Environment:
Your Company, a Navratna Central CPSE is committed for prevention of pollution and protection of environment, protection of Health and safety of employee and workmen. Company adopts preventive strategies rather than curative strategies in the field of all activities of the Company.
The 4R Principle (Reduce, Reuse, Recycle and Redesign) is given thrust for minimising the impact to environment on account of the industrial activities by the Company. Priority is given to monitoring of health status, to act proactively for wellbeing of employees in the Company.
All production units are certified to International Standards on Environmental Management Systems (ISO14001), Occupational Health and Safety Management System (ISO 45001) affirming commitment to comply proactively with continual improvement in the field of Health, Safety and Environment.
Further, to have cleaner and greener surroundings in all its operating units, 5S principle has been adopted to improve housekeeping in and around the plant.
All the production Units of the Company including Townships at production units are operating with valid "Consent to Operate" under Air & Water Act, valid authorisation under different applicable Law (Hazardous Waste Authorisation, Biomedical Waste Authorisation etc.), Valid Licenses under different applicable Law (Factory Licences, Explosive licenses etc.) and valid NoC etc.
To minimise water intake from natural sources, all waste water are treated in the treatment plant and are recycled for re-use in the plant. Thus zero discharge has been implemented in all production Units of the Company.
Rain water harvesting system (Rainwater Harvesting Ponds and Roof top rain water harvesting system) in operation at all production units of your Company.
Massive Plantation has been done in and surrounding of all production units of your Company. Around 107.24 Lakh Plants has been planted since inception. [CPP: 12.80 lakhs, Smelter: 17.99 lakhs, Refinery: 36.44 lakh and Bauxite Mines: 42.10 lakh].
Your Company celebrated "Chemical Disaster Prevention day", "Road Safety Week/month", "National Safety Week", "World Environment Day", "National Pollution Prevention Day", "Earth day", "Ozone day", "Electrical Safety week", "Vanamahostav", "Odisha Disaster preparedness Day, Fire service week etc. for promoting awareness of Safety, Health and Environment amongst the employees, workmen, suppliers etc. during the financial year 2024-25.
Concurrent Mining and land Reclamation are simultaneously being carried out at Mines using OB and top soil followed by mass scale plantation. This avoids storage of OB.
The unit specific major improvements taken up in the field of Safety, Occupational Health and Environment Management at all production units of the Company during the year are elaborated below:
12.1 BAUXITE MINES:
12.1.1 Safety and Occupational Health:
(a) Safety Talks are being conducted in every department on regular basis in presence of departmental head. Tool Box talks are being conducted in start of every work regularly by supervisors/foremen/officers/engineers.
(b) Safety Committee meetings are being conducted in monthly basis in presence of nominated workmen inspectors, workers representative and Management representative to deal various safety matters. Quarterly mock drills and internal safety audits have been carried out successfully in the year 2024-25.
(c) Basic dumper operation and skill up-gradation training for HEMM operators are provided by using Dump-truck Simulator and VR based training is provided to HEMM technicians. Refresher training & basic vocational training are being provided to all workers and First aid training, fire safety training & Behavioural based safety training are being conducted for executives and non-executives employees by internal/outside agency.
(d) QR code based scanners are installed at all working areas of mines for instant reporting of unsafe act, unsafe condition, near misses and for safety suggestion.
(e) Regular PME was conducted for 441 employees and no occupational diseases were detected in 2024-25.
12.1.2 Environment:
(a) Monsoon plantation in mines backfilled and hill slope/safety zone area is completed with planting of 1,50,889 nos. of saplings against the target of 1,50,000 except the areas earmarked for development of Miyawaki Garden during 2024-25.
(b) Approx. 13.60 Ha and 2.10 Ha of mined out area in Central & North Block and South Block respectively were rehabilitated with plantation.
(c) 7,000 square meter of grass-turfing was carried out inside the Mines as per the target.
(d) Weather parameters like Temp, Humidity, Rainfall & Wind has been installed on add on basis to continuous ambient air quality monitoring station (CAAQMS-3) which has been relocated to Mines Central Store to enable online monitoring of weather data.
(e) One Online Noise Monitoring System has been established at Crusher Drive House for online noise monitoring.
(f) Swachhta Hi Seva programs were carried out at Panchpatmali Bauxite Mine and in mines peripheral areas to improve awareness on swachhta.
(g) World Environment Day, Vana Mohastav Week and Ek Ped Maa Ke Naam campaign were observed at Panchpatmali Bauxite Mines followed by mass plantation in mined out area to improve awareness on restoring of ecosystem and conservation of biodiversity.
(h) Panchpatmali Bauxite Mine organised a one-day Environment-cum-Mineral Awareness Programme -2024 on 13 th November, 2024 for the school children of peripheral villages. School children from 14 nos. of peripheral villages participated in the programme.
(i) ME&MC Week (Mines Environment and Mineral Conservation Week) 2024-25 was organized under the aegis of Indian Bureau of Mines, Bhubaneswar at Panchpatmali Bauxite Mines, NALCO during 3rd to 9th December, 2024.
12.1.3 Awards and Accolades:
(a) Panchpatmali Bauxite Mine Central & North Block and South Block Mines have been awarded with prestigious 5 Star Rating for the year 2023-24 from Indian Bureau of Mines(IBM),Kalinga Environment Excellence Award, 2023 under 5 Star Category from Institute of Quality Environment Management Systems (IQEMS), Bhubaneswar for outstanding environment management.
(b) Panchpatmali Bauxite Mine has been awarded 24th Global Greentech Environment and Sustainability Award for outstanding contribution in Environment protection category.
12.2 ALUMINA REFINERY:
12.2.1 Safety and Occupational Health:
(a) Alumina Refinery, Damanjodi has established a state-of-art Safety Induction Centre near the Pass Section to facilitate easy and convenient Safety Orientation for contractor workers. The Safety Induction Centre is equipped with advanced interactive display, ergonomic seating capacity (20 nos.), audio-visual training packages for effective safety training.
(b) Periodical Road Safety checking was done with the help of CISF personnel for checking of the unsafe driving of vehicles including heavy vehicles.
(c) The contractor workers were imparted Safety awareness training on Contract Labour Management System (CLMS), safety class room training & on field safety awareness session/safety gathering. Total 3,160 nos. of contractor workers have undergone training for the financial year 2024-25 on Contract Labour Management System (CLMS).
(d) 757 employees undergone the classroom safety training and around 3,087 nos. of workers have been sensitized in safety gathering.
(e) 04 nos. of Mock Exercises has been conducted coordinated build confidence and ascertain the readiness of Emergency Response Team Members to cater any credible emergency scenarios in and around the Plant and Community.
(f) Alumina Refinery, Damanjodi had organized a series of Industrial Safety Training Programs for its employees and contractor workers in two phases from 18.11.2024 to 23.11.2024 (Phase-1) and 11.02.2025 to 14.02.2025 (Phase-2) respectively by engaging competent external training agency M/s. IQEMS, an approved institution by Directorate of Factories & Boilers, Govt. of Odisha and covered 577 nos. of employees and 634 nos. of contractor workers in these programs cumulatively.
(g) As a proactive measure, Alumina Refinery had also launched a scheme of rewarding the near miss reporting system with an objective to elevate the reporting culture and bring out more opportunities for improvement
(h) Renewal of Fire Safety Certificate is done by DFO, Koraput circle for the HFO, LDO tank along with Petrol, diesel bunk area inside the plant premises.
(i) Radar based Vehicular Speed Display Boards (02 nos.) have been installed inside Alumina Refinery to alert the vehicle drivers to maintain their speed within prescribed limit.
(j) QR code based safety suggestion scheme has been implemented in Alumina Refinery.
(k) A mock drill was organized in co-operation with CISF Fire wing on 31.01.2024, at Caustic road tanker unloading site.
(l) A State Level Mock Drill on Chemical Disaster was organized at HFO Storage Premise of Alumina Refinery by National Disaster Management Authority (NDMA) & Odisha State Disaster Management Authority (OSDMA) in association with District Administration, Local Authorities and NALCO on 28.02.2025
12.2.2 Environment:
(a) 15,092 nos. of trees were planted in and around Alumina Refinery.
(b) Second Red Mud Pond construction work is completed.
(c) E-Waste have been channelized to authorized collection center/ Recycler as per E-Waste Management & Handling Rule. Hazardous wastes (discarded asbestos and used oils) are channelized through the authorized agency. Plastic wastes (Used filter clothes) are disposed through authorized co-processing cement plant.
(d) Empty Chemical containers/ Barrels are being disposed through authorized recycler.
(e) Retrofitting work for Boiler#3 ESP pass-A and pass-C and Boiler#1 ESP pass-A has been completed.
12.2.3 Awards and Accolades:
Awards received by Refinery Complex for Environment and Safety Excellence are:
(a) Kalinga Environment Excellence Award for year 2023.
(b) Kalinga Safety Excellence Award-2023(Gold category).
(c) CII Eastern Region SHE Excellence Award (3 Star) for 2023-24.
12.3 SMELTER PLANT:
12.3.1 Safety and Occupational Health:
(a) To carry out plant safety inspection, NALCO Suraksha Mobile App is being widely used. The NALCO Suraksha Mobile App has been extensively used for plant safety inspections. In 2024-25, 751 safety inspection points were raised through the app with a compliance rate of 90%.
(b) In 2024-25, a total of 411 workers engaged in work at height underwent vertigo testing. Regular vertigo testing is essential for identifying balance and dizziness issues, ensuring the safety and well-being of workers performing high-risk tasks.
(c) 41 Mtr. Boom Lift vehicle for safe work at height has been received at Smelter Stores on 08.07.2024. Inspection & Testing done on 06.08.2024. Training on operating of Articulated Boom Lift is conducted on 07.08.2024.
(d) Zebra crossings provided at key locations for pedestrian safety.
(e) In the year 2024-25, 21 safety training programme were held covering 352 of employees and 687 contractual employees. Additionally 268 nos. of safety induction training imparted covering 3,213 contractual employees.
(f) Telescopic emergency lighting system was procured and commissioned at Fire Station on 23.06.2024.
(g) AAINAA, a Model Workplace was inaugurated at New PCRS, Potline on 16.09.2024, showcasing advanced safety systems and best practices.
(h) A new Fire Jeep was procured and put into service.
(i) Rail Traffic signalling light with hooter has been installed at the Coke Unloading Area on Rail Track No. 2 to regulate wagon placement. This system enhances safety by providing clear visual and audible signals, helping operators manage wagon movement efficiently.
12.3.2 Environment:
a) CTO for Smelter Plant for aluminium cast metal production capacity of 4.8 LTPA granted by OSPCB on 30.03.2024 with a validity up to 31.03.2026.
b) As a part of Hazardous waste management:
(i) 4,330 MT of Carbon Area hazardous wastes disposed to Common Hazardous Waste Treatment, Storage & Disposal Facility (CHWTSDF), Sukinda, Jajpur.
(ii) 2,619 MT of carbon portion of spent pot lining (SPL) disposed to Authorized Actual user.
(iii) 4,402 MT of dross sold to Authorized Actual User.
(iv) 60 MT used/spent oil sold to Authorized Actual User.
(v) 635 MT Induction furnace slag (Solid waste) sold to outside agency.
(vi) 1,225 MT Used & Scrap refractory bricks sold to outside agency.
(c) As a part of resource conservation and waste water recycling, 6,93,899 m3 treated waste water is recycled inside Smelter Plant premises which is 41.41% of Intake water from CPP.
d) Installation of online flow measuring device with digital display and data recorder at Drain-1, 2 & 3 completed which is working satisfactorily.
e) EPR registration in CPCB Portal for use of plastic materials for both Importer and Brand owner has been done for the first time by Smelter SH&E department for all Units of your Company. EPR Credit and Filing of annual report under PWM Rule 2016 has been done in September, 2024.
f) Re-calibration and data validation of PM-CEMS for ten major stacks (FTP-1 to 8 attached to Potline & FTC-1 to 2 attached to Bake Oven) for Star Rating Programme has been carried out in the month of September, 2024 and January, 2025 and reports submitted to OSPCB.
g) As a part of compliance to the order of Hon?ble Supreme Court of India, Third Party Audit on HW management in Smelter Plant for the financial year 2023-24 has been carried out and report submitted to OSPCB on 19.07.2024.
h) As a part of compliance to Special CTO Conditions of Smelter, Performance evaluation of Air Pollution Control/Water Pollution Control Devices, online monitoring Systems and HD IP Surveillance Cameras have been conducted by an Institute of National Repute M/s. IIT Bhubaneswar and report submitted to OSPCB.
12.3.3 Awards and Accolades:
a) Smelter Plant received "Kalinga Environment Excellence Award-2022" on 17.06.2023 in the Five Star Category for the performance year 2022.
b) Smelter plant was honored with the Kalinga Safety Excellence Award in the Platinum Category during the 14th National Safety Conclave held on December, 2023.
c) Smelter plant received the Safety Excellence Award from the Labour and ESI Department, Government of Odisha. The award was in acknowledgment of the plant?s outstanding performance in safety.
12.4 CAPTIVE POWER PLANT:
12.4.1 Safety and Occupational Health:
a) Fire Safety Certificate for CPP, NALCO was issued by Regional Fire Officer, Sambalpur on 17.02.2025.
b) To carry out plant safety inspection, NALCO Suraksha Mobile App is being used widely. In the financial year 2024-25, 222 safety inspection points were raised through the App. Out of these, 117 points were successfully complied with, resulting in an overall compliance level of 53%.
c) To demonstrate a continued commitment to safety, the CPP leadership has launched a program of "Safety Line Walk" on the shop floor. These unannounced monthly inspection involve directly engaging employees and workers to gain valuable insights into workplace safety practices & identifying unsafe Acts & Unsafe Conditions.
d) During the financial year 2024-25, a total of 96 safety training programs were conducted, covering 1,699 workers.
e) To check the Emergency preparedness & to mark the occasion of "Odisha State Disaster Preparedness Day, 2024 & National Day for Disaster Reduction, 2024", a Full Scale On-Site Mock Drill was conducted at Hydrogen Storage Shed on 29.10.2024.
f) Safety promotional events i.e. National Safety Week (in March, 2024), Fire Safety Week (in April 2024) & Electrical Safety Week (in June, 2024), National Road Safety Week (in January, 2025) were carried out for safety awareness among employees & workers.
g) 12 nos. of Safety Committee Meetings were carried out in the financial year 2024-25.
h) 05 nos. of Full Scale On-Site Emergency Mock Drills were conducted including 02 Nos. of On-Site Mock Drills in association with District Crisis Group (DCG), Angul.
i) Portable LED Tower Light was procured & commissioned at CISF Fire Station for use in emergency.
j) Stability Certification of New Buildings were carried out by the Competent Person & Amendment of Factory License of CPP, NALCO was done by Directorate of Factories & Boilers, Odisha in March, 2025.
k) Statutory Load Testing of Lifting Tools, Tackles & Pressure Vessels were carried out by the Competent Person approved by Directorate of Factories & Boilers, Odisha.
l) Stability Certification of New Buildings were carried out by the Competent Person & Amendment of Factory License of CPP, NALCO was done by Directorate of Factories & Boilers, Odisha in March, 2025.
12.4.2 Environment:
a) CPP is disposing ash in eco-friendly manner after commissioning of most coveted Lean slurry project (LSP) of ash disposal to allotted mine void of South Bharatpur to achieve 100% Ash utilization.
b) CPP has taken action for replacement of R-22 refrigerant used in Dx plant (Direct Expansion plants) by eco-friendly new generation R-407 C which is CFC free zero ozone depleting potential & low GWP (Global warming potential) refrigerant.
c) Trial Run of Co-firing of Biomass Pellets along with Coal in Boiler has started in March, 2025.
d) CPP has implemented incentive scheme of 150/MT to Brick manufacturer to enhance ash utilization. In the financial year 2024-25 around 6.73 lakh MT of dry ash has been supplied to Brick manufacturer.
e) In the year 2024-25, around 2.02 lakh MT of pond Ash has been supplied to NHAI for road construction. Further follow up is being done with National highway & State high way to enhance utilization of Pond ash in upcoming project for using in road and flyover construction. The ash utilization for the financial year 2024-25 is 80.44 %.
f) Consent to Establish (CTE) had been received from State Pollution Control Board (SPCB) in November, 2022 for construction of ash mound by increasing height of Ash Pond-II from 115 to 123 MRL (Meter reduced level). Around 15 lakh m3 of ash has been used for 5th phase ash mound construction in Sec-B of Ash Pond-II during the financial year 2023-24 and around 3.07 lakh m3 of ash has been used for 6th phase ash mound in the financial year 2024-25 in Sec-B of ash pond-II.
g) Zero discharge has been achieved with respect to industrial effluent, ash pond overflow water and sewerage treatment plant treated water which has been certified by State Pollution Control Board.
h) CPP has planted 5,050 nos. of plant in the financial year 2024-25. The plantation done since its inception is covering around 34.68 % of total area.
i) To measure the fluoride contamination in Ash Pond Seepage Water Discharge Outlet, an Online Fluoride Analyzer was commissioned at Ash Pond on April, 2024.
12.4.3 Awards and Accolades:
a) CPP bagged the "Kalinga Environment Excellence award 2023" in five star category in the award ceremony during the 9th National Seminar on Sustainable Environment & Climate Change held at Bhubaneswar on 08.06.2024.
b) CPP bagged the prestigious Kalinga Safety Excellence Award in Platinum category for the performance year 2023 on 18.12.2024 & 19.12.2024 at OSSC (Odisha State Safety Council), 2024.
c) CPP has been awarded as winner of Fly Ash Utilization, in the category < 500MW (Central Sector-Eastern region), by Mission Energy Foundation, on 08.03.2025 at Goa.
12.5 UTKAL - D & E COAL MINES:
12.5.1 Safety & occupational Health:
a) Provided the separate vehicle pathway for light vehicles and HEMM vehicles.
b) Annual internal safety audit was conducted in the Utkal-D & E Coal Mines and safety audit report was circulated to all concerned.
c) Formulation of 31 nos. of new SOPs for the activities related to Utkal-D & E Coal Mines.
d) Formulation of "Defensive Driving" and "Orientation of Safety" training packs and started to impart the training to all the Tipper/Dumper operators.
e) Regular safety talks were being conducted by shift supervisors in all three shifts.
f) Awareness sessions on "National Road Safety Week", "National Fire Safety Week", "National Safety Day", Heat Stroke and Health issue in Monsoon season were conducted among the workmen.
g) Safety awareness by conducting the session on Safety slogan, safety poem and drawing competition among the workers. Awards have been given to each category to motivate the workers.
h) Eye Refraction Test of 103 nos. HEMM operators have been completed and Initial Medical Examination of 397 nos. of employees have been completed.
i) Uses of Mobile Phones by workmen were stopped in their working hours at the workplace of Utkal-D & E Coal Mines.
j) Zero accident has been reported during the financial year 2024-25.
12.5.2 Environment:
a) Wind barrier around the coal stock yard has been provided to reduce the fugitive emission.
b) Water sprinkling are being carried out with mobile water sprinklers for dust suppression at Haul roads and service roads of the mines.
c) To control fugitive emission surface miner fitted with water sprinkling facility is used for coal extraction.
d) Truck wheel washing system for all out going trucks/dumper is in operation.
e) Use of wet drilling and controlled blasting techniques in Coal mine for reducing air pollution as well as ground vibrations.
f) Explosive is used in a control manner for loosening of overburden materials.
g) Use of truck mounted mist cannon for suppression of fugitive dust emission
h) Use of high pressure rain gun around coal stock yard to reduce the fugitive emission.
i) Around 5,083 nos. trees have planted in coal mines area.
j) Monitoring of ambient air quality in and around mines (4 locations) to determination of air quality.
12.5.3 Awards & Accolades:
a) Mine employees bagged 6 nos. of prizes in trade test during Annual Mines Safety Fortnight 2024.
b) General Safety awards for best Safety practices during Annual Mine Safety Fortnight 2024.
13.0 Technological Conservation, Renewable Energy Developments and Foreign Exchange Conservation:
The details pertaining to Technological conservation, Renewable energy developments and Foreign exchange conservation for the financial year 2024-25 are detailed at Annexure-IV of the Directors? Report.
14.0 Corporate Social Responsibility:
Initiatives taken by your Company towards Corporate Social Responsibility for the financial year 2024-25 are detailed at Annexure-I of the Directors? Report.
15.0 Cost Reduction measures and efforts to improve specific consumption of Critical Raw Material:
The cost of finished products is a critical parameter for sustaining in the competitive world market. Your Company has adopted many cost reduction
measures which has contributed to the reduction of product cost and made your company more successful.
The unit wise specific cost reduction measures adopted are indicated below:
15.1 Bauxite Mines:
a) Reconditioning of poly pulley hubs (1,753 nos.) and idlers (4,131 nos.) in crusher and conveyor section and its usage have resulted in cost savings of around 142.24 lakhs.
b) Rebuilding of the crushing segments of SMCP crusher for extension of their life in SMCP resulting in savings of around 121.83 lakhs.
c) Reduction in diesel consumption in dumpers by use of fuel additive has resulted in savings of 21.404 KL of HSD.
d) Reduction in diesel consumption by parking of Wheel loaders at mining face has resulted in saving of 128.832 KL of HSD in the current year.
e) Reduction in diesel consumption by enhanced usage of backhoe excavator in place of ripper dozers-wheel loader combination has resulted in savings of around 67.740 KL of HSD.
f) Reduction in diesel consumption by loading of bauxite directly from the pit by small backhoe and tipper combination has resulted in savings of around 403.687 KL of HSD.
g) At HEMM section, 1.32 KL of hydraulic oil were saved by reuse after centrifuging and filtration.
15.2 Alumina Refinery:
a) De-proprietarization of PMIO power supply used in HAIL DCS system (Saving of 14,84,188/- per power supply set procurement. 03 sets replaced during the financial year 2024-25 hence saving is 44,52,564/-).
b) De-proprietization of Ball Mill Liners of Ball Mill-1002 through Open Tender (OEM: M/s. FL Schmidth) (Saving of 1.82 crore).
c) Heat Exchangers De-Proprietarization. (Benefits - Vendor base increase and Proprietarization-Saving: 2,58,398/-).
d) HRD Feed dilution project in 02/04E area - reduction in flocculants consumption (Saving: 14.15 Lakhs/annum).
e) Advanced profile heating element replacement in Unit #1 air preheater in place of conventional profile heating element to enhance heat recovery. (Annual saving 1.66 crore/Annum).
f) Replacement of volumetric feeder to gravimetric feeder in #1 Feeder C & D (Saving 18,10,320 per annum).
g) Provisioning of Solar Lights at US03 Area (Saving 2,00,000 per annum).
h) Upgradation of Thyristorized control panel in place of contactor-based panel in Indcon Air dryer heater to save electrical energy and maintenance cost. (Saving 5,00,000 per annum).
15.3 Smelter:
a) Modification of Winch trolley communication control system for ABF-2&3 has resulted in continued lesser consumption of Electrical energy and HFO.
b) Installation of 84 nos. of Riser dampers for ABF-1 in conjunction with the installation of 04 nos. of Exhaust Manifolds in ABF-1 has not only resulted in seamless fire change in ABF-1 without any fresh cold-air ingress but also helped in reduction HFO consumption and also eliminated fire risks by closing the dampers at the time of fire change. Monitoring and observation after the completion of the project has established annual savings of 458 KL of HFO thus exceeding the project target of438.19 KL.
c) Replacement of Cold well Pump for Cooling Tower-1 EE by Energy Efficient Centrifugal Pump with resulting a saving of 0.169 million unit per year.
d) Replacement of 02 obsolete screw compressor by 02 nos. of Energy Efficient Centrifugal Compressor resulted in overall saving of 0.80 MU YOY.
e) Graphitization of cathode blocks: Total 931 nos. graphitized Pots are in operation out of which 43 pots have been Graphitized during 2024-25, resulted in reduction of specific electrical Energy consumption in pot line @ 55 kWh/MT.
f) Smelter has already taken up a pilot project i.e. "Development of low energy cell technology for smelter plant (AP2XN)" with an objective to reduce specific energy consumption under the development co-operation agreement between Rio Tinto/Alcan, Canada and NALCO. The Pots are running successfully with energy savings approx. 150 kWh/MT of specific DC energy consumption in the pot line. Further Procurements of 45 Pots proposal underway.
g) Replacement of 02 nos. 22 kW Hydraulic pump motor with 11 kW energy efficient pump motor at Furnace# C&D of Cast House B of ICM 2 which will have a potential of energy reduction by 120 kWh/day
h) Sample study of diesel consumption over 6 months in all forklifts of Smelter plant established usage pattern of the forklifts across the plant. Based on this study, forklifts with very less usage have been removed from fleet & similar usage have been clubbed. 3T Forklift fleet has been reduced from 92 to 68 (reduction of 25%), 8T Forklift fleet has been reduced from 24 to 18 (reduction of 25%). Similarly 10 T Forklifts have been reduced from 7 to 6 (reduction of 15%). This optimization drive saved us around 6 Cr in CAPEX.
15.4 Captive Power Plant (CPP):
a) 80 nos. old LT motors were replaced with new energy efficient IE3 motors, thereby saving of 53,138 kWh Electrical Energy per annum. Annual cost saving is 1,75,357.60.
b) VFD along with Motors was commissioned and tested in APH-A & B drive motor of Unit-5 which resulted in reduction in power consumption of 9 kW per motor.
c) 60 nos. of old conventional 70 Watt ceiling fans replaced with energy efficient 35 Watt BLDC fans. Annual energy saving will be, 9,198 kWh.
16.0 Disclosure of Accounting Treatment:
The financial statements of the Company have been prepared in accordance with Ind AS and relevant provisions of the Companies Act, 2013.
The financial statements have been prepared on historical cost basis, except certain financial instruments that are measured at fair values at the end of each reporting period, as explained in the accounting policies.
All assets and liabilities have been classified as current or non- current as per company?s operating cycle and other criteria set out in Schedule-III of the Companies Act, 2013. Based on the nature of business, the Company has ascertained its operating cycle as 12 months for the purpose of current or noncurrent classification of assets & liabilities.
17.0. Corporate Plan:
The Corporate Plan envisages 3 years action plan, 7 years strategy and 15 years vision to improve both bottom line and top line of your Company. It has identified functional and business initiatives to give your Company a competitive edge in order to overcome the impact of commodity cycle in the long run. The new business initiative includes growth through expansion in core business, forward integration through value addition, downstream facilities, selective diversification and backward integration for raw material security. The identified functional and business initiatives are under various stages of implementation.
Your Company is currently undertaking brownfield expansion of its Alumina Refinery, which will increase its capacity by 1 million tonne per annum. In Aluminium segment, your Company is planning for a 0.5 million tonne brownfield expansion of Smelter plant and associated Power plant.
For raw material security, your Company has already started operation of Utkal-D & E coal Mines and is in the process of opening of Pottangi Bauxite Mines. Your Company has operationalized Caustic Soda plant at Dahej, Gujarat in JV with M/s. GACL, which is securing the requirement of the critical raw material.
18.0 Business Development:
18.1 Brownfield Expansion of Smelter:
In order to enhance Company?s Aluminium production capacity, your Company is setting up Smelter expansion project of about 0.5 Million TPA capacity at Angul. Technology for Smelter expansion project is being finalised. Detailed Project Report for the project with smelter technology from the Technology Licensor shall be prepared. Pre-project activities have been initiated. Acquisition of requisite land through IDCO, Govt. of Odisha is underway. Environmental Clearance for the project is under progress. The Company is exploring different viable option for Power to meet its power requirement of the Smelter expansion project.
18.2 Caustic Soda Project in JV with M/s. Gujarat Alkalies and Chemicals Private Ltd. (GACL):
Your Company has formed a JV Company with GACL named "GACL-NALCO Alkalies & Chemicals Private Ltd. (GNAL)" to set up a 2.7 lakh TPA Caustic Soda Plant along with 130 MW Captive Power Plant at Dahej in Gujarat, as a part of raw material securitisation. Your Company and GNAL executed Caustic Soda Supply Agreement in September, 2021. Your Company, as promoter has released 276 crore to the JV Company towards 40% equity contribution. GNAL has commissioned the Caustic Soda plant in March, 2022 and started regular production of Caustic Soda from May, 2022. Your Company started receiving Caustic soda supply from GNAL for its Refinery since August, 2022. GNAL has produced 2,24,341MT of Caustic Soda Lye and 65,235 MT Caustic Soda Flakes in the financial year 2024-25.
18.3 Angul Aluminium Park Pvt. Ltd. in JV with Odisha Industrial Infrastructure Development Corporation (IDCO):
Your Company has formed a JV Company with IDCO for establishment of Angul Aluminium Park Private Ltd. (AAPPL) for promotion of downstream industries to manufacture Conductors, Extrusions, Castings, Foils and other aluminium products. Equity holding of your Company and IDCO in the project is 49% and 51% respectively. Your Company will supply hot metal, ingots, etc. to the units of Aluminium Park. Infrastructure development works, Administrative building, Aluminium development centre, Training centre, Bank, Post office building and internal roads of the Aluminium Park have been completed. Six project proponents have been allotted land in the Aluminium Park and four of them have already started construction of their plants.
18.4 High End Aluminium Alloy Plant in JV with Mishra Dhatu Nigam Ltd. (MIDHANI):
Your Company has constituted a Joint Venture Company named Utkarsha Aluminium Dhatu Nigam Limited (UADNL) with MIDHANI in August, 2019 for establishment of High-end Aluminium Alloy Plant for use in Defence, Aerospace and Automobile sectors reducing import dependency for such alloys and encourage Make in India. Latest Market Survey study for the proposed products mix and financial viability of the same was carried out. According to the study, the proposed project with a capacity of 60,000 TPA is not commercially viable due to a lack of demand, low per capita aluminium consumption in India and a lower level of aluminium localization in Aerospace, Defence, Marine, Automotive and other sectors. Both the Administrative Ministries have reviewed the present project scenarios and further way forward for closure of the project was discussed and final decision in this regard shall be finalized.
18.5 Acquisition of Strategic Minerals in overseas in JV with M/s. Hindustan Copper Ltd. (HCL) and M/s. Mineral Exploration Consultant
Ltd. (MECL):
JV Company among your Company, HCL and MECL named Khanij Bidesh India Limited (KABIL) was formed in August, 2019 to identify, acquire, develop, process and make commercial use of strategic minerals in overseas locations for supply in India and thus boost "Make in India" initiative of Government of India. At present, KABIL is focusing on identifying and sourcing battery minerals like Lithium and Cobalt. Engagement with few Government agencies, companies/projects are underway in Argentina, Australia. Your Company has released 40 crore towards its share of equity contribution in KABIL.
KABIL and CAMYEN (a State-owned mining company in Catamarca province of Argentina) have signed the exploration and development agreement in January, 2024 for five lithium mines in Argentina. KABIL has initiated exploration related activities at Catamarca, Argentina. Non-invasive exploration activities carried out from October, 2024 to March, 2025 with Geological mapping, Geochemical sampling, Survey, etc.
KABIL and Critical Minerals Office (CMO), Australia have engaged a Commercial Advisor for shortlisting and due diligence activities of Lithium and Cobalt mineral assets in Australia. Due diligence of five shortlisted Lithium and Cobalt mining projects is being carried out.
19.0 Development of Micro and Small Enterprises (MSES):
Your Company continued its commitment to the development of MSEs. Action taken during the year under review towards development of MSEs are as follows:
(a) During the financial year 2024-25, procurement of goods and services from MSEs based in Odisha amounted to 570.46 crore. The total procurement from MSE units, including those outside Odisha, stood at 898.76 crore. This represents 47.42% of the Company?s total eligible procurement from MSEs, significantly exceeding the mandated target of 25% as per the Public Procurement Policy for MSEs, 2012 and its subsequent amendments.
(b) With special efforts made by your Company, the number of MSE vendors registered has increased from 3,090 in the financial year 2023-24 to 3,493 in the financial year 2024-25. Additionally, the number of women-owned MSEs registered has risen from 253 (in the financial year 2023-24) to 295 (in the financial year 2024-25).
(c) Five Vendor Development Programs exclusively for MSEs were conducted, with a special focus on SC/ST vendors and women entrepreneurs. These included an All India Vendor Meet to strengthen vendor engagement. A Virtual Vendor Meet was held to promote collaboration and inclusivity among domestic and international vendors.
(d) In line with directives of Government of India, your Company has been making all efforts to enhance procurement of goods and services through GeM portal. All MSE vendors were requested to on board in GeM Platform.
(e) As your Company is registered with RXIL (TReDS Portal) since January 2018, all MSE vendors are being requested to register in TReDS Portal (RXIL) to avail the benefits extended to MSEs. Your Company has also on boarded the other two RBI-approved TReDS platforms this financial year i.e. M/s. A. TReDS Ltd. (Invoicemart) and M/s. Mynd Solutions Pvt Ltd (M1xchange).
(f) In the financial year 2024-25, 132 additional MSE vendors of your Company were on boarded on the RXIL TReDS platform, increasing the total to 230 vendors. Additionally, 31 MSE vendors were on boarded on M/s. A.TReDS Ltd. (Invoicemart) this year.
(g) Your Company?s procurement data from MSEs are being uploaded on a monthly basis in "MSME SAMBANDH" portal of MSME Department, GoI.
(h) NAMASYA (Nalco Micro & Small Enterprise Yogayog Application) App has been launched by your Company on 13.07.2018 to facilitate the existing MSEs registered with your Company as well as MSEs not registered. The App empowers MSEs with information about vendor registration process, items which can be supplied by them with technical specification, vendor development programmes and training programmes of your Company etc.
(i) Details of procurement made by your Company from MSEs during the financial year 2024-25 in comparison to previous financial year and details of Nodal officers:
| ,Sl? Particulars No. | 2024-25 | 2023-24 |
| (i) Total annual procurement (in value) (Rs. in crore) | 1,895.00 | 3,458.80 |
| (ii) Total value of goods & services procured from MSEs (Including MSEs owned by SC/ST entrepreneurs) (Rs. in crore) | 898.76 | 1,059.84 |
| ..... Total value of goods & services procured from only MSEs owned by SC/ST entrepreneurs (iii) (Rs. in crore) | 14.70 | 7.24 |
| (iv) Total value of goods & services procured from only MSEs owned by women entrepreneurs (Rs. in crore) | 48.66 | 108.05 |
| (v) % of procurement from MSEs (Including MSEs owned by SC/ST & women entrepreneurs) out of total procurement | 47.42 | 30.64 |
| (vi) % of procurement from only MSEs owned by SC/ST entrepreneurs out of total procurement | 0.77 | 0.21 |
| (vii) % of procurement from only MSEs owned by women entrepreneurs out of total procurement | 2.56 | 3.12 |
| (viii) Total number of Vendor Development programmes for MSEs | 05 | 08 |
| , Whether Annual Procurement Plan for purchases from MSEs are uploaded on the official (ix) website | Yes | Yes |
| (x) Whether targets reported in Annual Report | Yes | Yes |
*Total eligible MSE procurement through GeM excludes items such as coal, caustic soda lye, fuel oil, items procured against GTE, imported goods and works contracts for which specific exemption has been sought from the ministry.
**Total value of procurement through GeM in financial year 2023-24.
Details of Nodal officers of NALCO for procurement made from MSEs:
(A) Name of the Unit: Smelter & Power Complex, Angul, Odisha Nodal Officer: Shri Aira Kumar Bhoi, CGM(Materials)
Captive Power Plant, Angul- 759145
Mobile: 9437963705, e-mail: aira.bhoi@nalcoindia.co.in
(B) Name of the Unit: Mines & Refinery Complex, Damanjodi, Odisha Nodal Officer: Shri Swarupananda Mishra, CGM(Materials)
Alumina Refinery, NALCO, Damanjodi- 763008
Mobile: 9437043184, e-mail: swarupananda.mishra@nalcoindia.co.in
(C) Name of the Unit: Corporate Office, Bhubaneswar, Odisha Nodal Officer: Shri Shashikant Ranjan, GM (Materials)
NALCO Bhawan, P/1, Nayapalli, Bhubaneswar- 751013 Mobile: 9437029862, e-mail: shashi.ranjan@nalcoindia.co.in
20.0 Payment to Micro, Small & Medium Enterprises (MSME):
During the year, your Company has not delayed in payment to MSME Suppliers from the date of acceptance or deemed acceptance of relevant goods or services for a period exceeding 45 days.
21.0 Cautionary Statement:
Certain statements made in the Management Discussion and Analysis Report relating to the Company?s objectives, projections, outlook, expectations, estimates and others may constitute ‘forward looking statements? within the meaning of applicable laws and regulations. Actual results may differ from such expectations whether expressed or implied. Several factors could make significant difference to the Company?s operations. These include climatic and economic conditions affecting demand and supply, Government regulations and taxation, natural calamities over which the Company does not have any direct control.
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