India with its abundant supply of quality bauxite and low cost labour has established itself as a low cost producer of primary aluminium. Global primary aluminium production in 2012 was 45.2 million tonnes, with China accounting for an astounding 19.8 million tonnes or 44%. However, in India, the production of primary aluminium has stagnated around the 1.6 to 1.7 million tonne mark for the last three years. The three primary aluminium producers, viz. Hindalco, Vedanta and Nalco have expansion plans as well as greenfield projects that should take the production to 2.5 to 3.0 million tonnes in the foreseeable future.
Import and export of primary aluminium in India have increased over the years and kept pace with each other, making the sector increasingly globalised.
Recycled (secondary) aluminium production has surged in India, driven strongly by the demand for castings from the automotive sector. As the generation of aluminium scrap is limited within the country, scrap imports have grown significantly. However, the recent imposition of 2.5% customs duty on aluminium scrap import will act as a damper and some slow-down in the recycled aluminium sector can be foreseen.
The total aluminium usage (primary plus secondary) in the country is estimated at around 2.5 million tonnes in 2012. The principal user segment in India for aluminium continues to be electrical & electronics sector followed by the automotive & transportation, building & construction, packaging, consumer durables, industrial and other applications including Defence.
Aluminium is used mainly in the form of wire rods, castings, flat rolled products, foil, extrusions and derivatives thereof; the minor products include aluminium powder & paste and pellets for the steel industry.
Aluminium wire rod
The demand for wire rods is driven by the investments in the power transmission and distribution networks which are now growing at a rapid pace. India has been a pioneer in the use of aluminium for cables & conductors for well over 50 years! Over 70% of the demand from the electrical sector is for wire rods.
Aluminium castings
India is one of the major producers and users of aluminium castings in the world and castings account for around 30 to 35% of the total aluminium usage. The automobile sector has been the key driver for aluminium castings demand in the country. India’s emergence as a hub for the manufacture of automobiles and the global drive towards reducing the curb weight of automobiles, will act as growth vectors for this sector. Bulk of the castings production is from recycled (secondary) aluminium and this in turn is driving the demand for aluminium scrap.
Aluminium FRP
Flat rolled products find a wide range of applications and some of the key ones are foilstock, closure stock, bus, truck and rail coach applications, roofing & siding, cladding, electric fans, lighting fixtures, litho sheet, pressure cookers, pots & pans and so on. With the advent of 2-piece beverage cans, the demand for can body stock is expected increase exponentially. As domestic capacity has not kept pace with demand, imports have been substantial in recent years. In 2012, the aluminium FRP demand in India was estimated in the region of 480 – 520,000 tonnes.
Aluminium foil
India is one of the key producers of aluminium foil in the region. Pharmaceutical packaging is one of the major applications followed by liquid packaging, laminated tubes, and a variety of food and non-food packaging applications. Finstock is the major industrial application finding use in automotive air conditioners, heat exchangers and domestic air conditioning. As in the case of FRP, owing to a lack of domestic capacity, imports have been significant in recent years.
Aluminium extrusions
After several decades of pedestrian growth, the aluminium extrusions sector is fast becoming vibrant with strong growth prospects and the demand is nearing the 400 kt per annum mark. Conventional applications such as curtain walls, windows, doors as well as new applications such as formwork & scaffolding are driving the demand for aluminium extrusions in the ABC sector. Other applications that show great promise include automotive components, solar panel frames & supports, heat sinks, bus bars and so on. There is an increasing emphasis on high quality extrusions in terms of specifications as well as aesthetics including finish.
For several decades, the electrical sector was the backbone of the aluminium industry in India, accounting for about 50% of the domestic demand. Over the last two decades, other sectors such as transportation, building & construction, packaging and consumer durables
have gained ground and are forecast to grow rapidly. Overall, a 10 to 11% demand growth per annum, over the next 5 years, appears to be well within the reach of the aluminium industry in India.
by Shanker Gopalkrishnan, President, Madras Consultancy Group
Disclaimer:
This article entitled ‘The Aluminium industry in India – a brief review’ is intended to provide the reader a flavour of the aluminium industry in India and has been prepared based on secondary research supported by data & estimates provided by MCG. Prior to undertaking any business or investment decisions, further detailed investigations / studies are recommended. The author can be contacted at shanker@mcg.in
Good one sir.
Sir,
Very Informative contents .
I would like to get little more information and request you to respond to my mail.
Anil
Hello Sir,
Can you please throw some light on the prospects of Aluminium powder and paste industry. How is this industry going to fare in near future?
Thanks.
Respected sir,
i would appreciate if you could help in explining the aluminium powder industry, im located at hyderabad but of late i got enquiries for aluminium powder for use in making cement blocks,i have three queries if you could answer
1) is the block making (aacblocks) sustainable?
2)will it bef easable for sale ,i mean the production?
3)where else could be the product marketed?
Thank you in advance,
sincerely,
khan munawar
hyderabad
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Gopal Rathi
09373103416
Dear Mr. Rathi,
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Dear Sir,
We are looking for brief market survey report on Aluminium paste , Aluminium powder and Bronze powder. Can you please help us.
Regards
Santosh
dear Sir,
thank you very much for an easy to comprehend snapshot of the Aluminium industry in India.
Best regards
respected sir,
this data is very use-full for me.
but i cant under stand export and import data.
please explain.
thanking you
Sir
We are planning to start the new aluminium extrusion plant in tamilnadu.On the way we are working.Planned for Minium capcity Press and production around 70 tons per month.In india aluminium extruded sections and aluminium scrap,how is the market.I request you to please provide your views to my mail.It should be very useful to us.
hey , any body like to get information bout aluminum scrap please feel free to contact thank you. mailing adress. ijazhaasan@hotmail.com
Dear Sir,
The article is an eye opening about the industry in the non-ferrous sector. A little more on the aluminium scrap (both imported and indigenous)being recycled and channeled into the industry for further conversion would have provided insight to bring out more factual data on the production and consumption side. nevertheless, a splendid informative one.
You share a very useful knowledge about aluminium and this article is very helpful and it also help all scrap dealers in different way.
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