Budget FY 2003- Aluminum manufacturers will take a hit
Reduction in import duties will affect the bottom line
The bottom line of the major aluminum manufacturers has been under pressure from falling global prices over the past four months. These are yet to stabilise. Now, the proposal to slash basic duty from 25% to 15% will further add to the woes of the manufacturers as they will have to offer higher discounts to sell their metal However, companies like Nalco, who have been focusing on value added products, more than the basic metal may be able to take this in their stride. Hindalco, on the other hand, will feel a lot of pressure.
On the positive side, the lower HSD prices should help the companies in lower co-generation costs of power.
