Livemint reported that Hindalco Industries Limited is shutting its 6,000 tonnes per annum aluminum foil manufacturing plant in Kalwa a suburb of Mumbai.
Mr Debu Bhattacharya MD of Hindalco said that the closure was due to high power cost and because of inefficiencies as the plant is over 40 years old. The company is in the process of retiring 300 employees working at the plant.
Mr Bhattacharya said that we will modernize the plant and make it more efficient and cost effective. The plant will move to one of our factories. The modalities are being worked out.
Commissioned in 1965, the Kalwa plant makes aluminum for products catering to pharmaceutical companies and processed food makers besides manufacturers of personal healthcare products and confectionery.
Mr Ashish Kejiriwal analyst at Alchemy Shares and Stock Brokers Private Limited said that the Kalwa plant was too insignificant to make any difference to HINDALCO.
He said that the company is focusing on high margin business. Going forward, Novelis’s volume will increase by 2% to 3% per year however profitability will improve due to its focus on high margin business. In domestic operation, aluminum volumes will double in FY13.
（Sourced from www.livemint.com）
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