RSB Ind gets nod for alumina refinery in Orissa

PUNE: RSB Industries , the holding company of a low profile auto component manufacturing group headquartered in Pune, is planning to enter the aluminium refining and smelting sector in Orissa. The promoters appear unfazed by the delays other projects are facing in that mineral- rich state.

The group's main business is components manufacturing for the automotive and construction sectors through its flagship company, the over Rs. 1,000 crore RSB Transmissions. The company has three overseas locations, in Belgium for the construction and in the US and Mexico for auto component sectors.

"We are planning to enter the metals and energy, that is, power generation, sectors. Group company RSB Metals has an MoU with the Orissa government for an integrated aluminium project. We have also received preliminary clearances for the land at two locations totalling 2700 acres for an alumina refinery and an aliminium smelter. We could also set up a 450 MW captive power plant at the smelter unit since it is an energy-intensive activity," said RK Behera, founder-chairman, RSB group. The captive power plant could be set up by RSB Energy, a group entity which is currently looking to acquire a power plant.

He remarked that so far all the minerals-based projects in Orissa were focused only on processing the raw material while RSB Metals will look to set up downstream industrial units. While the alumina refinery in Raygada district will be near the mines, the aluminium smelter, in Dhenkanal district, will be near a railway line and have access to water.

"We will invite other aluminium-based units to set up on our campus, providing them the hot metal from our unit," Behera remarke. This employment generation activity through a campus-like location for other aluminium user industry units has probably ensured acceptance of the project.

Demand for the metal is increasing across sectors, from construction, electronics to the automotive. The automobile industry is increasing its use of the light weight aluminium to replace heavier metals and thus reduce the weight of cars. According to a Frost and Sullivan report of 2009, India is expected to produce 2.73 mn tonnes of aluminium by 2020, more than doubling its 2010 production of 1.30 mn tonnes.