Nalco to merger fully owned subsidiary IAPL with itself
Move to give company a lead in the secondary metal market
After consolidating its position in primary aluminum production, state-run Nalco has strengthened its presence in the secondary metal market by merging its 100% subsidiary company, International Aluminum Products Ltd. (IAPL), with itself. The merger, which has been approved by the central government, is part of a larger plan to `operate in the primary and intermediate sectors of the aluminum industry`. IAPL`s products would include foil stock, cable wraps and standard sheets. Since the project is located close to Nalco`s existing smelter near Angul in Orissa, there will be an advantage of lower freight costs. Moreover, IAPL`s project is aimed at serving the export market. Since Nalco exports half its products, the merger will benefit both. Nalco, at 230,000 tonnes is the second largest aluminum company in the country.
