Nalco, Hindalco march over global giants
Product diversification and higher volumes aid performance
Product diversification and increased volumes saved the country`s primary aluminium producers – Hindalco and Nalco, in the third quarter, at a time when global giants bit the dust due to a steep decline in LME prices. While Aditya Birla flagship Hindalco registered a sales growth of 3% for Q3, the state-owned Nalco`s sales were down 4% over the corresponding quarter last year. But, seen against the 13% fall in prices at the LME, these performances are commendable. Since these companies and Sterlite-owned Balco fix their product prices basis of the LME, fluctuation on the LME rule their realizations. Higher growth in value added products, extrusions and redraw products was another reason for better performance despite sharp fall in LME prices.
