When the stock market is down in the dumps and when Nalco is about to reap the benefits of expansion, the Government seems to be intent on selling its own stake come what may. The Government has decided to appoint some merchant bankers to advise it on an ADR/GDRs for overseas and domestic sale of its 30 percent equity. These are likely to be chosen before March 2002. After the ADR/GDR issue, the government will issue expression of interest for sale of 26 percent equity to a strategic buyer and complete the privatization of a company which is one of the finest in the world in terms of profitability in aluminium industry Nalco's cost of production of Alumina is said to be 113 dollars per ton and of aluminum metal 905 dollars per ton. This is likely to be reduced further after the smelter and power plant expansion is complete which will be complete in 2002 itself. Further the downstream processing will be improved when the International Aluminum Products Company which is merged with Nalco starts operating soon with its 50,000 tons capacity.
NSTL
