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VALUE CREATION AT NATIONAL ALUMINIUM COMPANY LTD NALCO - Coggle Diagram

- - - - Reason: improvements in operational efficiency , global aluminum prices had a significant hike
    - - Reason: The Aluminum prices have stabilized
    - - Reason: decline in aluminum prices ,raising cost of raw materials , economic downturns, fluctuations in foreign markets
  - - - REASONS: Higher Aluminum Prices - the aluminum prices rose significantly in 2021 and 2022 due to the covid-19 and disruption in supply chain
      - NALCO has implemented cost-saving measures leading to higher margins
- - - - NALCO is developing captive coal mines (like Talcher coal mines) to secure a stable raw material supply and reduce dependence on external sources, mitigating the impact of fluctuating coal prices.
    - - Brownfield Expansion: NALCO focuses on increasing production capacity at existing facilities like the Angul refinery and smelter complex through modernization and technology upgrades, optimizing efficiency and output.
      - Greenfield Projects: They explore new projects in areas like alumina refineries, smelters, and power plants, diversifying their geographical presence and expanding their overall production capacity.
- - - - Reason:Falling aluminum prices: A decline in global aluminum prices in 2019 and 2022 could have reduced NALCO's revenue and profitability, leading to negative EVA.
      - Increased costs: Rising costs of raw materials, energy, or labor could have squeezed NALCO's margins and resulted in negative EVA, particularly in 2019.
    - - Operational efficiency improvements: Similar to the potential reason for increased ROI in 2021, improvements in operational efficiency or cost-saving measures could have boosted profitability and EVA in 2021 and 2023.
      - Spike in aluminum prices: As mentioned before, global aluminum prices saw a significant rise in 2021, potentially leading to increased profits for NALCO and driving up its EVA.
  - - - Reason:The combination of falling aluminum prices and rising costs could have triggered negative investor sentiment towards NALCO, impacting its stock price and MVA.
    - - The recovery in aluminum prices and potential signs of operational improvement could have restored investor confidence, driving up NALCO's stock price and MVA
    - - Aluminum prices seem to have stabilized somewhat in 2023, potentially providing some stability to NALCO's revenue and profitability, leading to a partial MVA recovery.
    - - Global events like the Russia-Ukraine war could have disrupted supply chains or triggered economic uncertainties, impacting NALCO's market valuation and MVA.
- - - - Production and dispatch of soda to NALCO started in May'22 and Aug'22
- - - - Rainwater Harvesting
      - Process Optimization
      - Energy Efficient Technologies
    - - Community Development
      - Human Development Development
    - - Land Reclamation
      - Exploration of cleaner technologies
      - Alternative Materials