Runaya Metsource, funded by Vedanta Group’s ‘principal shareholders’, and Russian aluminium billionaire Oleg Deripaska’s Rusal are creating an equal joint venture for precision applications, such as rocket fuels, solar energy, and additive or 3D manufacturing.
Naivedya Agarwal, whose father Navin Agarwal is the chairman of Vedanta Ltd and Cairn IndiaBSE 0.75 %, will spearhead the joint venture in his independent capacity, a senior executive in the group said.
Starting out with an initial capital of about $50 million, Naivedya’s maiden business venture Runaya Metsource will focus on material sciences and high-technology applications through global alliances and partnerships.
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“This JV with Rusal is looking to target high-end applications in additive applications, rocket fuel, solar energy and paints, and coatings for Indian and global markets,” Naivedya told ET in an email response on the project that may come up on either of the two states on India’s eastern and western water margin — Odisha and Gujarat. The capacity of the venture will be 10ktpa, and commercial production starts in 2018.
The new company will produce high-end value-added aluminium pastes and powders to cater to applications primarily in additive technologies and solar energy, an executive said. Additive manufacturing refers to a process by which digital 3D design data are used to build up a component in layers by depositing material. The term ‘3D printing’ is increasingly used as a synonym for additive manufacturing.
Naivedya, 27, is an alumnus of the London Business School, and has done stints at JP Morgan in the economics and fixed income research division, and in consulting firms that include BCG, Munich, and McKinsey & Co. Later, Naivedya joined Vedanta to market zinc.
“Currently India’s demand of gas-based aluminium pastes/powders are met entirely through global supply. This will also give customers access to world-class R&D facilities for product development,” Naivedya said.
The project will be divided into several stages; the first stage includes the JV registration, a selection of a construction site, and the design project of a plant. The JV will sell its products primarily in the Indian, South-East Asian and Middle Eastern markets where demand is growing rapidly.
“A combination of Rusal’s long lasting experience in the production of aluminium powders and pastes and Runaya Metsource’s strong position as a local player create solid competitive advantages for the JV,” said Alexey Arnautov, Rusal’s director for new projects.
