Aluminium industry


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Scenario of Aluminium Industry in India.

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Aluminium industry

  1. 1. Aluminium Industry By: Rahul Ranjan
  2. 2. History • Aluminium compounds make up 7.3% of the earth's crust. • Aluminium is the third most available element on the earth . • Currently Aluminium is second most used metal in the world. • Aluminium production in India commenced in 1938 with the commissioning of Aluminium Corporation of India's plant in technical and financial collaboration with Alcan, Canada having a capacity of 2,500 ton per annum. • India stands at the eighth position in the list of leading primary Aluminium producers in the world.
  3. 3. Process
  4. 4. Milestones • In 1959, Hindustan Aluminium Corporation (Hindalco) was set up at Renukoot in UP with an initial capacity of 20,000 ton per annum. • In 1965,Malco, a public sector undertaking was commissioned with a capacity of 10,000 ton per annum. • In 1975, Balco, a PSU with a similar capacity of 10,000 ton was set up. • In 1987, National Aluminium Company (Nalco) with a capacity of 0.218mn ton was commissioned in technical collaboration with Pechinery of France.
  5. 5. • In the 1970s, the government regulated and controlled the aluminium industry through price distribution controls and barriers to entry. • The government decontrolled the industry in 1989 with the removal of the Aluminium Control Order. • The industry was de-licensed in 1991 and was allowed liberal import of capital goods and technologies.
  6. 6. Applications • Power. • Transportation. • Construction. • Packaging. • Consumer Durables. • Engineering.
  7. 7. 48 15 13 10 7 7 Aluminium Usage in India(%) Power Transport Construction Packaging Consumer Durable Other
  8. 8. Top Players • Hindustan Aluminium Company (HINDALCO), National. • Aluminium Company (NALCO). • Bharat Aluminium Company (BALCO). • MALCO(Madras Aluminium Company). • INDAL(Indian Aluminium).
  9. 9. • HINDALCO: Hindalco an Aditya Birla Group flagship company, is the biggest player in the aluminium industry in India with around 39% of market share. Hindalco has its aluminium plant at Renukoot in Uttar Pradesh. It has various aluminium products with a market share of 42% in primary aluminium, 20% in extrusions 63% in rolled products, 31% in wheels and 44% in foils. • Sterlite Industries: The aluminium business of Sterlite Industries Limited comprises of two Indian aluminium giants – BALCO and MALCO. While BALCO is a partially integrated, MALCO is a fully integrated producer of aluminium. Sterlite has got a market share of around 32%.
  10. 10. • NALCO: It is also one of the leading aluminium producers in India. Government of India has a stake of 87.15% in this company. Its aluminium refinery is located at Damanjodi. It also has a smelter located at Angul, Orissa. Currently, NALCO is concentrating on a capex programme to increase its production from 345,000 tones to 460,000 tonnes.
  11. 11. Location of Key Companies
  12. 12. Other Players • Hind Aluminium Industries Ltd • Bhoruka Aluminium Ltd • Alumeco India Extrusion Ltd • Sacheta Metals Ltd • Alicon Castalloy Ltd • Gujarat Foils Ltd • Sudal Industries Ltd • PG Foils Ltd • Parekh Aluminex Ltd • Century Extrusions Ltd • Pennar Aluminium Co. Ltd. • Synthiko Foils Ltd • Parth Aluminium Ltd
  13. 13. The Industry • The global production of aluminium figures around 38 million tons . • China and India reported the greatest increases in aluminium output, at 12 percent and 11 percent respectively. • In 2006-07, the production target of Aluminium in India laid by the Ministry of Mines, Government of India was 1,153 KT, which was augmented to 1,237 KT in the next year (2007-08). In FY 09, the total Aluminium production in India was around 1.35 tones.
  14. 14. • In India the domestic aluminum production exceeds the domestic demand, the imports on an average 15-20 % of the total supply of aluminum. • Exports figures are around 82000 tons annually and the major importer countries of Indian Aluminum are Bangladesh, Sri Lanka, Egypt and Iraq. • The Indian per capita Aluminium consumption is less than 1 kg compared to about 3 kgs in China and 30 kgs in the US.
  15. 15. Features • Highly concentrated industry with only five primary plants in the country. • Controlled by two private groups and one public sector unit. • Electricity, coal and furnace oil are primary energy inputs. • All plants have their own captive power units for cheaper and un-interrupted power supply. • Energy cost is 40% of manufacturing cost for metal and 30% for rolled products. • Plants have set internal target of 1 – 2% reduction in specific energy consumption in the next 5 – 8 years. • Energy management is a critical focus in all the plants. • Each plant has an Energy Management Cell.
  16. 16. Market Leaders Company Market Capitalization(Rs. Crores) Hindalco 20002.89 Nalco 8054.89 PG Foils Ltd 30.41 Sacheta Metal Ltd 28.32 Hind Aluminium Industries Limited 22.74 Sudal Industries Limited 7.71 Alumeco India Extrusion Ltd 7.69 Centrury Extrusion Ltd 6.24 Mann Aluminium 3.99 Bhoruka Aluminium Ltd 3.79 Parth Aluminium Ltd 2.47 Pennar Aluminium Ltd 0.88
  17. 17. Growth Potential • India is considered to be the fifth largest producer of Aluminium in the world. • It is estimated that if the country’s aluminium consumption rate maintains, it’d behaving the reserves for over 350 years. • In India, the demand is expected to increase at almost 14% • The per capita consumption of the metal is only 1.3kg, the country has a huge reserve of good quality bauxite reserve.
  18. 18. • A study of the aluminium industry in India today reveals that most refineries will be commissioned in the subcontinent around 2020. • India has nearly 10% of the world's bauxite reserves. • Demand in the domestic market is expected to grow by 8-10%. • India is expected to have an installed aluminum capacity of 1.7 to 2 million tons per annum by 2020.
  19. 19. SWOT Analysis Strength Weakness •Abundant resources of aluminum ore. • Low cost and efficient labour force. • Strong Managerial capability. • Strongly globalised industry and emerging global competitiveness. • Modern new plants & modernized old plants. •High cost of energy. •Higher duties and taxes. • Labour laws. • Dependence on imports for aluminum manufacturing equipments & technology. Threat Opportunity • Market fluctuations and China’s export possibilities. • Global economic slowdown. • Governance issues. •Environmental concerns. • Rapid Urbanization. • Increasing demand for consumer durables. • Untapped rural demand. • Increasing interest of foreign aluminum producers in India. • Globalization.
  20. 20. Refrences • • • • india/market-capitalisation-bse/aluminium.html • Scope and Potential of Indian Aluminium Industry: An Indepth Analysis ,By: Sunildro L.S. Akoijam (European Journal of Business and Management ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4, No.3, 2012)
  21. 21. Thank you