Ancillary and Downstream Industries

Snapshot

  • Odisha is the largest producer of Aluminium in the country with 54% of total Aluminium smelting capacity.
  • India, being one of the fastest growing markets in Aluminum, offers a huge opportunity for value addition in the downstream sector which can be capitalized with the availability of abundant feedstock.
  • Odisha is also the largest Stainless Steel producing State in the country
  • 20% of the total Steel making capacity of the country is contributed by Odisha
  • With the country’s economy expected to grow rapidly in the near term, the requirement for value added products will multiply thus offering a good potential for downstream development in the steel sector.

Ecosystem

The upstream ecosystem for downstream and ancillary industries is well developed in Odisha with abundant availability of mineral resources and mother plants in proximity to the mineral rich regions. The salient features of the ecosystem include:

A. Feedstock Availability

Feedstock commitments from the mother plants to the downstream and ancillary units in Aluminium, Steel and Stainless Steel

  • Aluminum

    A cumulative smelting capacity of close to 1.0 MTPA comprising of National Aluminum Company (NALCO) with a capacity of 345,000 TPA, Vedanta Resources with smelting capacity of 500,000 TPA and Hindalco with smelting capacity of 145,000 TPA respectively.

  • Steel

    Steel Authority of India Limited with a capacity of 4.5 million metric tons and planning to ramp up the production to 10.8 MTPA by 2025, Tata Steel with capacity of 6 MTPA of which the capacity of 3 MTPA in expected to be operational shortly, Essar Steel with a 6 MTPA palletization plant and the production expected to reach 12 MTPA by the end of 2015. Jindal Steel and Power Limited with an installed capacity of 9 MTPA and expansion plan upto 21.5 MTPA

  • Stainless Steel

    Jindal Stainless Limited with a capacity of 1.8 MTPA.

B. Infrastructure Support
  • Excellent industrial infrastructure facilities providing a seamless access to the port and hinterland markets
  • Development of exclusive industrial parks for downstream industries at Angul and Kalinganagar, in close proximity to the mother plants
  • The industrial parks offer state-of-the-art plug & play physical infrastructure with Common Facility Centres and Skill Development Centres as specialized infrastructure
  • Capital grant for Greenfield industrial parks developed by the user industry.
C. Policy Support
  • A comprehensive strategy to accelerate the growth of downstream sectors and commitment on the feedstock.
  • Special incentives to anchor industries.
  • Special incentives for employment intensive industries in the IPR 2015.

Investment Opportunities

Downstream and Ancillary investment opportunities are available across the metal sectors and segments as outlined below:

Segment Aluminum Steel Stainless Steel
Industrial Segments Cables, Foils, Panels, Castings, Forgings, Laminates, Rods, Reflectors, etc. Equipment Manufacturing, Foundries, Flat/Cold rolled products, Fabrication, Machining and precision equipment, etc. Fuel Containment vessels, Waste Handling Systems, Auto components, Fasteners, etc.
Consumer Durables Tubes, Bottles, Aerosol Cans and Panels, Refrigeration, Electronics, etc. Appliances and white goods, etc.   Kitchen ware
Life style industries
Appliances