Hindalco in tolling arrangement with Indal
Strategy to increase synergy between group companies
The Kolkata-based Indal is planning to increase tolling volumes with Hindalco in a bid to convert surplus alumina to aluminum. Under the tolling process, surplus alumina is given to outside companies to convert it to aluminum after paying conversion charges. Under its arrangement with Hindalco, Indal will pay Rs 50,000 per tonne of alumina. Both companies benefit from this arrangement. While Indal does not need to pay sales tax on the metal it gets, Hindalco gets the opportunity to utilize its assets more optimally.
