Global aluminium majors queue up to gain Nalco control
Foreign suitors show high level of interest in India’s privatisation
The government’s plan to bring down its holding in Nalco to 26 percent from the existing 87.1 percent has seen a record number of global aluminium majors showing interest in the disinvestments process. This is the first time that foreign suitors have shown a high level of interest in India’s privatisation, which has so far been dominated by domestic companies. In fact, the global list reads like a virtual who’s who of the aluminium industry.
The latest global major to join the race, according to ministry sources, is Russian Aluminium (RusAl), the world’s largest producer of aluminium, at 2.5m tones of primary aluminium facility. French aluminium maker Pechiney is also keen on a stake in Nalco and is high on the government's sell-off list. Pechiney is also exploring chances of setting up a bauxite-alumina refinery in India. However, Canadian major Alcan has not yet expressed its intention, though tow companies from Germany and Hungary have communicated their interest.
Of the Indian companies, the country’s largest aluminium company, Hindalco have expressed their interest along with Sterlite Industries and the Oswal’s. It is also reported that Hindalco has picked up close to 4 percent share holding in Nalco through open market purchases. While the company has denied it, it seems that Reliance Industries too has shown interest in Nalco.
