Nalco bids for smelter unit in Indonesia

New Delhi: Indian state owned National Aluminium Company is competing with a cartel of Japanese firms to operate 2.25 100,000 tonne smelter unit in Indonesia.

The official on conditions of anonymity said that negotiations are on between Nalco and the Indonesian government on many issues including Nalco picking up a stake or even operating the country's Ashan Aluminium.

For Nalco, which is investing in a thermal power plant and a smelter in the south Asian country, the latest development is part of a strategic move to integrate its business plan in Indonesia.

The state owned aluminium major could well be the latest in a growing list of Indian companies venturing into Indonesia. Nalco has already made a detailed presentation to a cabinet committee in Indonesia highlighting plans for its growth.

A senior Nalco official said that the proposal is still in its early stages but was confident that it would come through. We have submitted a proposal to the Indonesian government to get associated with Inalum. However, we are yet to hear from them. It depends entirely on the Indonesian government whether they will offer Nalco part or full equity in Inalum. If it works out, the deal to acquire the company could be worth close to INR 80 billion.

Mr Prakash Subramanian KV MD and head of global markets of Standard Chartered Bank said that in recent times, many top Indian companies have flocked to Indonesia to start businesses. The country's attractiveness as an investment destination for Indian companies rests on three pillars. Its 250 million plus population with 6.5% GDP growth rate makes it a strong consumer goods market.