Vedanta double the operating profit made on each tonne of aluminium going ahead, said John Slaven, chief executive officer for Vedanta Aluminium.
India’s consumption of aluminium is likely to double in 5 years at the current growth rate, and Vedanta will look at maintaining its market share while focusing on sustainability, Slaven told ET in an interaction.
Q. As the largest producer of aluminium in the country, what are your growth plans?
A. Vedanta has a growth and ‘can do’ mindset. In India, the consumption of aluminium has grown by an average of 14% in the last three years, when economic growth was at 7%. India currently consumes around 5 million tonne of aluminium, and if it maintains the current growth rate, in 5 years, the consumption is going to be 10 million tonnes. In another 5 years, it is going to be 20 million tonnes. We have about 50% market share currently, and want to maintain that.
Q. So will that be the pace at which the company grows?
A. We have to grow at that pace, and the first opportunity for us is to migrate the products that we are selling overseas to the Indian market. This is valuable for us in terms of price realisation, which we are already improving with more value-added products. We currently have 60% value-added products in our mix, but this will go to 90% once we raise production to over 3 million tonne. So, it is higher value add in a higher price market and at the same time, we are reducing our cost significantly through backward integration.
Q. What are some