Setting short and longterm objectives is crucial for driving business growth and success. At BALCO, we recognise the importance of these goals, as shortterm achievements pave the way for long-term accomplishments.
I am delighted to address you all and share the key operational and financial highlights of FY23. This year has been challenging due to global macroeconomic headwinds, but I am pleased to say that we have not only overcome these obstacles but also achieved remarkable success in driving sustainable value creation. Our commitment to defining our way forward has paved the path for growth, innovation, and positive impact.
Firstly, despite the initial setbacks in the first half of FY23, we have successfully recovered all the losses incurred and demonstrated resilience in the second half of the year. This achievement reflects our strong determination and strategic decision-making, which enabled us to navigate through turbulent times and emerge stronger than ever.
In Q4 FY23, we witnessed our best-ever performance in pot line operational parameters, specifically in specific power consumption and net carbon consumption. These impressive results have not only helped us achieve our cost targets but have also reinforced our position as an industry leader committed to sustainability. Our team’s dedication to optimising our operations and driving efficiency, has contributed to this outstanding performance.
In terms of global inflationary pressures, we have been proactive in managing production costs and mitigating risks associated with rising global inflation. Our financial strategies and prudent decision-making have enabled us to overcome these challenges effectively. By closely monitoring market trends, implementing cost-saving measures, and fostering strong relationships with our suppliers and partners, we have ensured the stability of our production costs and sustained profitability.
At BALCO, we keep our customers at the heart of all our business operations. We strive hard to boost customer satisfaction by providing products and services that cater to the evolving needs of our customers. As we value our customers’ expectations and requirements, we continuously enhance our processes and offerings. Additionally, to sustain our reputation as an organisation with zero customer complaints, we emphasize more on quality, reliability and on-time delivery of products.
One of the key aspects that set us apart from our industry peers is our focus on creating a sustainable business. We firmly believe that sustainable practices are not only essential for the environment but also critical for long-term success. In FY2023, we collaborated with 452 business partners, generating shared values worth 1.2 billion USD. By adopting modern methodologies like e-RFP and e-auction, we have made our procurement process transparent, fostering trust and synergy among all stakeholders. We have also engaged in longterm partnerships, such as O&M contracting and ARCs, and explored end-to-end contracting options to ensure sustainable growth.
Furthermore, we are expanding our capacity to meet growing market demands from 0.58 MTPA to 1 MTPA. Our VAP capacity will reach 103%, enabling us to offer improved quality products and expanding our Rolled Products capacity to 180 KTPA. Moreover, we are adding a 420 KTPA Billet facility to our product portfolio.
Our commitment to sustainability and profitability goes hand in hand. BALCO is dedicated to producing aluminium sustainably. In line with this commitment, we have implemented energy conservation techniques such as preheating ladles carrying molten aluminium through the use of biofuels. This method significantly reduces greenhouse gas emissions compared to conventional non-renewable fuels. We are also working towards obtaining the Green Aluminium-Aluminium Stewardship Initiative (ASI) certification soon. By 2025, we aim to achieve zero legacy waste (high volume low toxic waste), and by 2030, BALCO will be water positive, aiming to have a 30% renewable energy power mix by procuring green power.
Setting short and long-term objectives is crucial for driving business growth and success. At BALCO, we recognise the importance of these goals, as shortterm achievements pave the way for long-term accomplishments.
Despite the challenges imposed by various geo-political conflicts and supply chain disruptions all over the world, we were able to achieve 98% of our production target. Our future plan of action is aligned with our goal to position ourselves as a strong player in terms of both production and quality by expanding our production capabilities along with enlarging our customer base.
In the near future, BALCO is on track to reach a production capacity of 1 MTPA, nearly doubling our current capacity. This expansion will propel Vedanta from the 11th to the 9th global rank in terms of production capacity by 2026. In addition to increasing our primary production capacity, BALCO is also focused on diversifying our product portfolio. We are actively venturing into downstream products such as foils, composite panels, roofing sheets, chequered sheets, aluminium circles, and fabrication plates. We are commissioning a billet line in the current financial year, which will enable us to cater to a broader customer base. Billets find wide applications in the construction, automotive, aerospace, packaging, electrical and electronics, and consumer goods industries.
BALCO also supplies aluminium wire rods to the steel sector, where they are used as a deoxidiser. We have implemented innovative solution of selling wire rods without flipping, saving time, energy and packaging material while meeting market demand. We are continuously exploring financial models to maximise profits from power sales after meeting our smelter demand. To enhance smelter operational parameters, we are upgrading our pot controllers to reduce specific power consumption.
To enhance the client experience and foster customer loyalty, we have implemented various initiatives. Technological innovation is a key driver of our overall operations. We have made significant advancements, such as the indigenous development of pot controller systems, centralised SCADA for PTM, and online collector bar temperature measurement in our potline operations. By leveraging advanced technologies and best practices, we aim to achieve greater efficiency while minimizing our environmental impact.
Digital transformation is another area where BALCO is making significant strides. We embrace innovative technologies to optimise various aspects of our operations. For instance, we utilise GPS trackers in our trucks to enhance logistics and transportation efficiency. Real-time tracking and route optimization enable us to ensure timely deliveries and minimise operational costs. Furthermore, our digital solutions enable us to effectively manage mine production and handle fly ash. By leveraging advanced data analytics and automation, we streamline processes, improve productivity, and reduce our environmental footprint.
Furthermore, we have developed a roadmap that will drive the overall development of our company. This roadmap includes the development of new product portfolios, increased VAP, Green Aluminium reduced carbon footprint, improved infrastructure facilities, and an enhanced product mix. By benchmarking ourselves in India’s aluminium industry, we aim to solidify our position as a leader and drive the industry’s growth.
BALCO has planned several initiatives to empower families by enhancing skillsets and uplifting women and children through proper education, nutrition, healthcare, and welfare. These initiatives, such as ‘Mor Jal Mor Maati’, ‘Vedanta Skill School,’ ‘Unnati,’ ‘Nayi Kiran’, and ‘Mobile Health Van’ and ‘Arogya,’ align with our commitment to sustainable development and social responsibility. BALCO strongly believes in inclusive diversity and is proud to have LGBTQIA+ employees, with 14 transgender employees currently working with us. We are committed to creating an inclusive and diverse workforce that fosters a culture of respect and equality.
Moreover, our efforts to achieve net zero carbon by 2050 are also well underway. We have prepared a detailed strategy for net zero carbon, encompassing both shortterm and long-term initiatives. In FY24, we will focus on reducing auxiliary power in the smelter, specific coal consumption, and actively switch to renewable energy sources. Additionally, we will increase biomass co-firing in our power plants, further contributing to our carbon reduction goals.
Our commitment to being water positive by 2030 is equally strong. To achieve we prioritise efficiency improvements and process enhancements in our RO systems. We will optimise the utilisation of STP water in our processes and revamp the water credit structure in nearby communities. By implementing these measures, we aim to ensure responsible water management and minimise our impact on local ecosystems.
Looking ahead, we plan to remain agile, adaptable, and innovative in the face of evolving challenges and opportunities. Our focus on sustainable value creation will guide us as we continue to drive growth, profitability, and social responsibility. We are well-positioned to write the history of ‘Atma-Nirbhar Bharat’ in the aluminium industry. Together, we will define our way forward, setting new benchmarks and becoming the “Supplier of Choice” for aluminium in India.
Thank you for your unwavering support, trust and commitment to our company. We remain dedicated to maximising shareholder returns and a prosperous future.
Regards,
Chief Executive Officer &
Whole Time Director
