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CONTENTS•   An Intro into Aluminum .•   Source and obtaining process•   Global consumers (by share and purchasing ratio)• ...
ALUMINUM – AN INTRO                                       45                                                              ...
Source and obtaining process                               4
Source and Obtaining Processes•Aluminum is sourced atbauxite ores.                 Source•Third most abundantmetal on eart...
Process                                                      •Electricity plays a big role in Aluminum production.Mentione...
Process & Output•Meting point of aluminum at 660.32 Celsius.•Boiling point at 2519 Celsius.•An aluminum smelter consists o...
Global Consumers                    TRANSPORTOTHER                                   CONSTRUCTION                    ALUMI...
Major Global Consumer Base•   Five major global Aluminum consumption Industries: -                                        ...
Major Global Consumer Base                                                         ALUMINUM CONUMPTION IN TRANSPORTATION S...
CONSTRUCTIONS SHARE OF INDIVIDUAL COUNTRYS                                                                     ALUMINUM CO...
ENGINEERING’S SHARE OF INDIVIDUAL COUNTRYS      ENGINEEERING                                                     ALUMINUM ...
PACKAGING                                            PACKAGING’S SHARE OF INDIVIDUAL COUNTRYS                             ...
MAJOR CORPORATIONS50                                                    TOTAL PRIMARY ALUMINUM PRODUCTION IN THOUSAND TONN...
TOP 10 BASIC INFORMATION                   RUSAL            RIO TINTO            ALCOA           ALUMINUM         NORSK HY...
PER CAPITA CONSUMPTION OF ALUMINUM IN KILOGRAMS-2011                                                    45ALUMINUM IN INDI...
TOTAL ALUMINUM PRODUCTION SHARE IN 2011    PRIMARY ALUMINUM PRODUCING CORPORTAIONS IN           INDIA                     ...
NALCO                                       HINDALCO (Indalco)                       VEDANTA RESOURCES (Sterlite +        ...
TOP SECONDRY ALUMIUM PRODUCERS    OTHER               RANGE OF                    TOTAL REVENUE                TOTAL      ...
Supply = Demand      Export : - -: Import                1800Aluminum is directly affected by big                 TOTAL A...
ALUMINUM PRODUCTION IN COMPARISON WITH GDP / POPULATION / POWER                                                           ...
STRENGTHS                                          Availability of large and high quality                                 ...
References-Upon Request-Rohan Krishan                 23
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  • United Company RUSAL is the leader of the world’s aluminum industry. Its products are exported to clients in 70 countries of the world. The Company incorporates bauxite and nepheline ore producers, manufacturers of alumina, aluminum, alloys, foil and packaging materials, as well as power assets. The United Company holds 12.5% of the world’s aluminum market and 16% of the world’s alumina market, which allows the company to produce 3.9 mln m.t. of aluminum and 10.6 mln m.t. of alumina per annum. The company was established in March 2007, as a result of merger of RUSAL, SUAL and alumina assets of Glencore. UC RUSAL provides employment for 100,000 individuals and is operating in 17 countries on 5 continentsRio Tinto-Alcan Group — is another diversified mining company among the top ten aluminum producers in the world. It got its present configuration in 1997 after a series of takeovers and mergers with major one being with Alcan. Aluminum production is one of the group’s seven lines of business. Rio Tinto Aluminum mines bauxites, produces alumina and primary aluminum, accounting for 26% of all aluminum, manufactured in Australia. The head-office of its aluminum operation is located in Brisbane, Australia, with representations in New Zealand, Australia and Great BritainAlcoa is one of the world’s leading manufacturers of primary aluminum, aluminum products and alumina. The company is involved in aerospace, automotive, packing and construction industries, as well as in the field of commercial transportation and engineering solutions. Alcoa has 129,000 employees in 44 countries of the world. In 2006 the company has produced 3.55 mln m.t. of primary aluminum. In Russia, Alcoa owns OJSC Samara Metallurgical Plant and OJSC Belaya Kalitva Metallurgical Industrial AmalgamationAluminum Corporation of China Limited, also known as Chalco is a major aluminum company headquartered in Beijing. It is the world’s second-largest alumina producer (and the only producer in China) and third-largest primary aluminum producer (and the largest producer in China).Chalco is principally engaged in the extraction of aluminum oxide, electrolyzationof virgin aluminum and the processing and production of aluminum.Norsk Hydro Aluminium is one of the two main business units of Norsk Hydro. Its second line of business is the oil and power industry. Hydro Aluminium is a downstream-integrated company with major alumina assets in Brazil and Jamaica, and aluminum smelters in Australia, Canada, Germany, Norway and Slovakia. The company has also announced its intention to build an aluminum smelter in Russia. Hydro Aluminium has 26,000 employees. In 2006 they have produced 1.8 mln m.t. of primary aluminum. At present, Hydro has offices in Moscow and Saint Petersburg. Dubal or Dubai Aluminium is the largest aluminum manufacturer in the UAE. Starting in 1979 with a single pot line, producing only 136,000 m.t.p.a., Dubal today is one of the leaders of world aluminum industry, having production capacity of 900,000 m.t.p.a. of aluminum. 3240 people work for the company. The main markets for Dubal are: the Far East, Europe, Asia, the Middle East, the Mediterranean and North America. Dubal does not have representation in Russia.BHP Billitonis the largest mining company in the world. The company acquired its present configuration in 2001, when it was created through the merger of the Australian Broken Hill Proprietary Company (BHP) and the British listed Billiton. Aluminium production is just one of ten businesses run by this Australian giant. As of today, overall production capacities of the company are over 1 mln m.t. of aluminum and over 4 mln m.t. of alumina per annum. BHP Billiton owns industrial sites in South Africa, Australia and South America. BHP Billiton does not have a representation in Russia.Aluminium Bahrain B.S.C. or Alba is one of the largest aluminum smelters in the world. Since it was built in 1971 in the Knaff District of Bahrain, the smelter has increased its production capacity from 144K to 850K m.t.p.a. of aluminum, thus entering the Big Ten aluminum manufacturers and becoming the world’s third largest aluminum smelter. In 2006 Alba has produced 2.3% of the world’s aluminum.
  • Transcript of "Aluminium expansion"

    1. 1. 1
    2. 2. CONTENTS• An Intro into Aluminum .• Source and obtaining process• Global consumers (by share and purchasing ratio)• Major companies • MARKET SHARE • TURNOVER (PRODUCTION / SALES)• Global Indian Companies. • MARKET SHARE • TURNOVER • TOP PROFITABILITY • LAST FIVE YEARS ACUISITION / MERGERS.• Export – Import / Supply = Demand• Future of Aluminum in India. 2
    3. 3. ALUMINUM – AN INTRO 45 44.9 43.98 44 43.33• Third most abundant element 43 42.45 on earth. It has atomic mass of 42 41.53 Production 40.96 (In Million 13 and is currently traded at 41 Tonnes) the value of US$2365 / Metric Consumptio Ton. 40 n (In Million• Global output at 44.8 million 39 Tonnes) metric tonnes with an 38 estimated $112.8 billion in 2010 2011 2012 revenue in 2012.• Analysts predicted an annual ALUMINIM DISTIBUTION IN VARIOUS SECTORS growth rate of 7 to 14% in the 7% global industry demand up to EUROPE 10% 15% 35% 2011, 10% 26%• 12% increase in construction USA 12% 23% 33% expenditure in 2007. 17% 10% 22% Others• Minimum of plus 16 million JAPAN 10% 18% 35% Packaging annual growth in urban 10% 21% Engineering population during the next CHINA 13% 22% 29% 8 years fuelled by Aluminum. Transport 13% 29% RUSSIA• Construction 22% Aluminum alloys are the critical 10% 28% backbone of three global 15% 18% INDIA 31% industries – 11% 27% Transport, Engineering and 3 construction. 0% 10% 20% 30% 40%
    4. 4. Source and obtaining process 4
    5. 5. Source and Obtaining Processes•Aluminum is sourced atbauxite ores. Source•Third most abundantmetal on earth withbauxite as its main ore.•Derived through openmining system in variousparts of the globe.•Largest reserves ofalumina are in Guinea.•Production usuallydistributed in three steps:- Mining – ElectrolysisSeparating – Hall-Hérault.•Biggest aluminumproducing mines are inAustralia. 5
    6. 6. Process •Electricity plays a big role in Aluminum production.Mentioned below are three steps in •Average electricity costs fluctuates at $0.015 per KWH.Alumina Manufacturing process: - •Transportation also forms an intrinsic and expansive part of the process.•Bayer process : - •Average transportation cost US$33.36 per Ton. is the first step through which aluminum is •Global mining wage stands at $87.56 / ton. crushed and mixed with sodium hydroxide. It is then further subjected to high temperature and pressure to separate heavier elements.The Electrolysis Step: - aluminum oxide is placed in an electrolytic cell, an electrically charged carbon rob is introduced to pull the oxygen atoms away from the aluminum. The result is carbon monoxide, carbon dioxide and pure aluminum, which sinks to the bottom in a powder form.•Hall-Hérault Process: - alumina is dissolved into a mixture of molten cryolite, and then electrolyzed to end up with pure aluminum. For the Hall- Hérault process to function, an electric current of low voltage but from 200,000 to 500,000 amperes must pass continuously through each cell. On average it takes about 15.7 kWh of electricity to produce 1 kg of aluminum 6
    7. 7. Process & Output•Meting point of aluminum at 660.32 Celsius.•Boiling point at 2519 Celsius.•An aluminum smelter consists of a large number ofpots, steel containers lined with carbon, in which theelectrolysis takes place; smelting is run as a batchprocess, with the aluminum metal deposited at thebottom of the pots and periodically siphoned off.Power must be constantly available, since the pots 18 17.99 17.78have to be repaired at significant cost if the liquid 16.13metal solidifies. 16•A typical smelter contains anywhere from 300 to 14720 pots, each of which produces about a ton of 2010 (Primary 12aluminum a day. Aluminum 10 Production In•Besides labor, Electricity constitutes a lions share (in Million Tonnes)some countries up to 44%)of the production cost in 8 2011 (Primaryaluminum as it is required in all three stages. Aluminum 6 4.96•The global primary production stood at 44.9 million 4.68 4.31 4.25 4.02 3.96 3.8 4.4 Production In 4 3.3 3.48 3.34 million tonnes)tones. 2.53 2.5 2.3 2.27 2.3 2.7 2.3 2.18 2.01 1.8 1.88 1.74 2012 (Primary• The global consumption was slightly less at 43.33 2 1.4 Aluminummillion tones. 0 Production In million Tonnes)•Due to its non corrosive nature it is used in 90% ofthe manufacturing around globe. 7
    8. 8. Global Consumers TRANSPORTOTHER CONSTRUCTION ALUMINUM PACKAGING ENGINEERING 8
    9. 9. Major Global Consumer Base• Five major global Aluminum consumption Industries: - Aluminum Consumption in Developed – – Transportation Engineering Economies – Construction – Packaging – Others (consumer goods )• Transportation:- – Includes aviation, automobile and shipping sectors. TRANSPORT 25% – Composite aluminum or aluminum based alloys are imperative in making CONSTRUCTION airplanes lighter and stronger. 42% CONSUMER GOODS – Aluminum consumption in automobile industry increased to 9.8 MT (million tonnes) in 2009 as compared to 3.7 MT in 1991. 4% ELECTRICAL GOODS – In newer cars, aluminum induction comprises up to 28% of the total car parts MACHINERY 4% further reducing the weight of the car on an average by 194K.G globally. – Introduction of Aluminum in automobile also reduces the emissions from the car 8% PACKAGING (on an average it increases the fuel efficiency by 700 liters over the lifetime of 4% OTHERS the car and cuts down the lifetime emission of the car by 8 tonnes). 13% – two thirds to three quarters of a passenger plane’s dry weight, and from one twentieth to half of a rocket’s dry weight accounts for the share of aluminum in airborne craft – aircrafts of all types and dimensions are constructed mainly of the ‘winged Aluminum Consumption in Developing metal’. It accounts for about 80% of the weight of unloaded air vehicle. For example, the famous Boeing 747 contains 75 tonnes of aluminum. Economies – The advantages of aluminum alloys (2219 etc.) also include their high performance under cryogen temperatures in contact with liquid oxygen, hydrogen, and helium. The so-called cryogen reinforcement happens in 4% these alloys, i.e. the strength and flexibility increase parallel to the decreasing 4% temperature. 6% 19% TRANSPORT – Aluminum is used in high-speed railway cars and modern subway cars — it is CONSTRUCTION light and resistant to heavy vibration but consumes little power. For these reasons, for railway manufacturers, aluminum is certainly a material of the CONSUMER GOODS 18% future. Aside from passenger railway cars, freight cars have been made from ELECTRICAL GOODS aluminum for a long time, with the first car being manufactured in 1931. In the 1960s, aluminum was used in the manufacturing of box freight cars with MACHINERY a capacity of about 100 tonnes. It took about 7 tonnes of aluminum to make each car, 10 tonnes less than for the steel version. 37% PACKAGING 15% OTHERS 9
    10. 10. Major Global Consumer Base ALUMINUM CONUMPTION IN TRANSPORTATION SECTOR BY COUNTRY 35%• Aluminum alloys used in shipbuilding 35% 33% corrode 100 times slower than steel. During the first year of operation, steel corrodes at a speed of 120 30% mm/year, while aluminum – at a speed 27% of 1 mm/year 26%• Aluminum vessels do not require such 25% extensive care as steel vessels, which has an impact on the cost of their INDIA maintenance. 20% RUSSIA• Aluminum alloy 5083 is an aluminum CHINA alloy suitable for cryogenic JAPAN applications down to design 15% 13% USA temperatures of −165 °C EUROPE (−265 °F), since alloys of this type do 10% not show the ductile-brittle transition 10% phenomenon. This alloy is also common for the marine applications such as body materials for 5% ships, underwater vehicles etc. 0% INDIA RUSSIA CHINA JAPAN USA EUROPE 10
    11. 11. CONSTRUCTIONS SHARE OF INDIVIDUAL COUNTRYS ALUMINUM CONSUMPTION ConstructionAlumina & Steel alloys are used in making 29% 30% 28%structural steel beams for high rises, dams andnuclear plants. Its proximity to non-corrosion 26%add qualitative strengths to steel alloys.High Purity Alumina is the most cost- 25%effective and widely used material in thefamily of engineering ceramics.Excellent dielectric properties from DC to 20% 18% INDIAGHz frequencies Resists strong acid and alkali 17% RUSSIAattack at elevated temperatures . CHINAAluminums unmatched recyclability is user JAPANfriendly and gives architects a key 15% USAsustainability design tool. 11% JAPANAluminums high strength-to-weight ratiomakes it possible to design light structures 10%with exceptional stability.The metal‘s inherent strength allowsaluminum window and curtain wall frames to 5%be very narrow, maximizing solar gains forgiven outer dimensions. 0% INDIA RUSSIA CHINA JAPAN USA JAPAN 11
    12. 12. ENGINEERING’S SHARE OF INDIVIDUAL COUNTRYS ENGINEEERING ALUMINUM CONSUMPTIONAluminum, a superb conductor ofelectricity has seen replacing copper in manyelectrical applications. Moreover it is non- 35%magnetic and non combustible, properties 31%highly essential in advanced industries suchas electronics or in offshore structures. 30%Since it is non corrosive and light its alloysare used in off shore rigs and drilling stations. 24%Aluminum alloys are used with steel and 25% 22% INDIATitanium for use in primary heavy industries . RUSSIAAluminum and its alloys can be easily 20% CHINAshaped by any of the main industrial JAPANmetalworking processes by combining USAproperties which also ensures 15% 12% JAPANrolling, extrusion, forging and casting 10% 10%In this day and age there is approximately66.7 MT of aluminum being used in 10%engineering based applications(wiring, machines, corrosive spray). 5% 0% INDIA RUSSIA CHINA JAPAN USA JAPAN 12
    13. 13. PACKAGING PACKAGING’S SHARE OF INDIVIDUAL COUNTRYS ALUMINUM CONSUMPTIONAluminum has the best barrier options tokeep food and drinks fresh and safe and toavoid loss 29%Studies have documented that the 30%aluminum cans are the most recycledbeverage container in the world and mostaluminum foil applications are fully 25% 23%recyclable.The aluminum beverage can is one of themost sustainable packaging solutions 20% INDIAavailable, because it not only protects its RUSSIAcontents but is cost-effective and can be 15% 15% CHINArecycled after use. Worldwide production for JAPAN 15%all beverage cans is approximately 475 billion USAcans per year worldwide, 52 billion per year 10% 10% JAPANin Europe. 10%Aluminum due to its inertness helps toreduce the impact of used packaging. It islight and minimizes packaging volumeswithin cheaper limits 5% 0% 13 INDIA RUSSIA CHINA JAPAN USA JAPAN
    14. 14. MAJOR CORPORATIONS50 TOTAL PRIMARY ALUMINUM PRODUCTION IN THOUSAND TONNES 41.27 38.2940 36.69 UNITED RUSAL 31.27 RIO TINTO ALCOA30 ALUMINUM CORPORATION OF CHINA NORSK HYDRO ASA DUBAI ALUMINUM CO20 17.05 CHINA POWER INVESTMENT CO 13.86 13.81 12.49 BHP BILLITON LTD 10.16 8.81 SHANDONG XINFA ALUMINUM10 ALUMINUM BAHRAIN BSC0 UNITED RUSAL RIO TINTO ALCOA ALUMINUM NORSK HYDRO DUBAI ALUMINUM CHINA POWER BHP BILLITON LTD SHANDONG XINFA ALUMINUM CORPORATION OF ASA CO INVESTMENT CO ALUMINUM BAHRAIN BSC CHINA 9.19% UNITED RUSAL 8.53% RIO TINTO ALCOA 8.17% ALUMINUM CORPORATION OF CHINA 50.11% NORSK HYDRO ASA 6.96% DUBAI ALUMINUM CO CHINA POWER INVESTMENT CO 3.80% BHP BILLITON LTD 3.09% SHANDONG XINFA ALUMINUM 3.08% 2.78% ALUMINUM BAHRAIN BSC 1.96% 2.26% 14 TOTAL SHARE PER CORPORATION IN GLOBAL PRODUCTION OTHERS
    15. 15. TOP 10 BASIC INFORMATION RUSAL RIO TINTO ALCOA ALUMINUM NORSK HYDRO DUBAI CHINA POWER BHP BILLITON SHENDONG ALUMINUM CORPORATION ASA ALUMINUM INVESTMENT LTD XINFA BAHRAIN BSC OF CHINA COMPANY ALUMINUMPRODUCTION 4127 3829 3669 3127 1705 1386 1381 1249 1016 881 CAPACITYNUMBER OF 72,202 68,000 61,000 107,887 23,000 3800 N.D 109,000 60,000 2730EMPLOYEES (CONGLOMERT (CONGLOMERA AES OF TE) DIFFERENT COMPANIES REVENUE US$ 12.2 Billion US$ 12.1 Billion US$24.91 US$2.35 Billion US$15.18 US$3.03 Billion US$2.7 Billion US$5.2 Billion US$4.2 Billion US$2.3 Billion Billion BillionOPERATION US$8.7 Billion US$ 6.6 Billion US$18.9 Billion US$2.21 Billion US$ 11.1 Billion N.D N.D N.D N.D US$1.7 Billion COSTSNET INCOME US$ 521 US$ 442 US$ 611 US$ 110.8 US$ 312 US$ 953 US$ 186 N.D N.D US$ 562 Million Million Million Million Million Million Profit Million MillionTOTAL ASSETS US$ 25.3 Billion US$ 26.24 US$ 40.01 US$ 25.23 US$ 16.2 Billion N.D US$ 41.55 US$ 102 Billion N.D US$ 3.6 Billion Billion Billion Billion Billion CEO Oleg Jacynthe Cote Klaus kleinfield Hong Weiping Svein Richard Abdullah Lu Qizhou Marius Zhang Gang Tim Murray Deriparska Jaissim Kalban Kloppers 15
    16. 16. PER CAPITA CONSUMPTION OF ALUMINUM IN KILOGRAMS-2011 45ALUMINUM IN INDIAN ECONOMY 40 38.2 35 INDIAIndian consumption per capita stands at 30 CHINA1.8KGs against the world (lowest In rapidly 27.6 26.2 25 BRAZILemerging economies). 22.3 ITALY 20India produced 1.66million tonnes of 16.7 16.7 JAPANAluminum as compared to 44.9 M.T globally. 15 U.SIndia plans to achieve 5MT annual production 10 CANADAby the end of 2015. 5 6.8 GERMANYExports to be doubled to 1.8 M.T 0 1.8Coal is the primary energy source for majority INDIA CHINA BRAZIL ITALY JAPAN U.S CANADA GERMANYof Indian smelters. ALUMINUM CONSUMPTION IN INDIAN ECONOMYBauxite reserves in India are estimated to be at 35%2300 MT. 31% 30%Engineering which also includes electrical 27%operations is the largest consumer of aluminum 25%based applications. 20%India exported almost 300,000 tonnes of 18% CONSTRUCTION 15%aluminum in 2011. 11% 15% TRANSPORTATIONThe primary Indian Aluminum industry is 10% ENGINEERINGcontrolled by HINDALCO and VEDANTA 5% PACKAGINGRESOURCES in the private sector and NATIONAL OTHERSALUMINUM COMPANY in GOVT SECTOR. 0% CONSTRUCTION TRANSPORTATION ENGINEERING PACKAGING OTHERS 16
    17. 17. TOTAL ALUMINUM PRODUCTION SHARE IN 2011 PRIMARY ALUMINUM PRODUCING CORPORTAIONS IN INDIA 26% 36%The big three in India areNalco, Vedanta resources and Hindalco.Only Vedanta and Hindalco have globaloperations; whereas Nalco is government NALCOowned and managed. VEDANTAIn the Indian theater, Vedanta is further 42%divided into subsidiaries such as HINDALCOBalco, Malco (have temporarily ceasedoperations from Dec 2008), Sterlite. 800 745Hindalco owns INDAL (Indian aluminum 700 679corporation) and acquired Novelis aglobal aluminum manufacturer in 2007 600 575for US$ 6 billion. 500 513Hindalco registered US$5.5 billion in 413 438 TOTAL ALUMINUMrevenue in 2011. Whereas Vedanta 400 PRODUCTION IN 2011-000resources registered a net of US$14.1 TONNES 300billion from their global operations. TOTAL ALUMINUMNational Aluminum Corporation 200 PRODUCTION CAPACITY IN 2011-000 TONNESregistered a revenue of US$1.4 billion 100from 2011 operations. 0 NALCO VEDANTA HINDALCO 17
    18. 18. NALCO HINDALCO (Indalco) VEDANTA RESOURCES (Sterlite + Vedanta aluminum + BALCO + MALCO + Hindustan Zinc)ANNUAL PRODUCTION 413,000 MT 513,500 MT 679,542 MTOVERALL CAPACITY 438,000 MT 575,000 MT 745,000 MTREVENUE US$1.4 BILLION US$ 5.5 BILLION US$1.8 BILLIONNET PROFIT 2009-2010-2011 2011-2010-2009 2011-2010-2009 US$155 MILLION-187 MILLION – US$467 MILLION – 410 MILLION – US$387 MILLION – 770 MILLION – 602 US$201 MILLION US$369 MILLION MILLION.ACQUISITION / MERGERS Joint venture between MEC and Nalco NOVELIS FOR US$ 6 BILLION. Merged Sterlite with Sesa Goa to form will operate a smelter in East Acquired Indalco in 2000 from Indian Sesa Sterlite. Vedanta acquired 10.4% Kalimantan for $5.6 billion government with 74.6% stake in stake in Cairn India through Sesa construction. equity. Sterlite for US$1.4 Billion. It plans to hike its stake in the nuclear In July 2007, Hindalco announced it is power joint venture with Nuclear acquiring the stake of Alcan Inc.s in Power Corporation of India the Utkal Alumina Project located in (NPCIL).Nalcos current stake in the Orissa firm is 26% and its is expected to be 49% In 2008 Nalco started investing close to US$8 billion in aluminum smelters and refineries to boost its productionCEO Ansuman Das Kumar Manglam Birla Anil Aggarwal 18
    19. 19. TOP SECONDRY ALUMIUM PRODUCERS OTHER RANGE OF TOTAL REVENUE TOTAL NO OF CEO/ MANAGING ALUMINUM PRODUCTS PRODUCTION EMPLOYEES DIRECTOR PRODUCERS IN CAPACITY INDIAJindal Aluminum Aluminum Extrusions; US$ 121 million in 2011 82,000 MTPA. 1800 as of 2009 KR Raghunath Aluminum Flat bar and Extrusions Tubes, Foils Bhoruka Extrusions, Anodizing, US$ 27 million 8581 MTPA 1156 R.K Aggarwal MD / Ajay Transport grade aluminum, Kumar Dalmia (Chief Aluminum Construction, foils. Financial Officer) PG Foils Food packaging aluminum, US$36.85 million 1800 MT estimated ** N.D Pankaj P shah insulation aluminum Hind Aluminum all-alloy aluminum Rods, US$74.97 million 35000 MTPA 4500 estimated Lalit Kumar Daga floors, grills, railings, EC grade wire rods Sacheta Metal aluminum and stainless US$ 11.7 million 2000MTPA (present) 900 estimated** Founder-Satish K. Shah steel sheet, circles, utensils, 3000MTPA by 2014 castings, non-stick items and other house wares. Century aluminum products and US$ 35.5 million 15000MTPA N.D M.P Jhunjhunwala aluminum unalloyed Extrusions ingots, aluminum extruded products such as bars, rods, wires and pipesMaan Aluminum Secondary aluminum US$21.24 million 13000MTPA N.D Mr. Bijender Kumar producers Rathaliya Gujarat Foils aluminum sections, US$47.65 million 7000MTPA N.D Pradeep J Saxena-Director aluminum tubes, flat, round and hexagonal bars, plain angles & channelsPennar Aluminum aluminum rolled products US$24.5 million 8000MTPA 1200 employees Nrupendra Rao and conductors 19
    20. 20. Supply = Demand Export : - -: Import 1800Aluminum is directly affected by big TOTAL ALUMINUM PRODUCTION in thousand 16675: - GDP, population, power 1600 tonnesgeneration, transport andconstruction. 1456The total aluminum output was at 14001.6 million tonnes. 1250Consumption was at 1.3 milliontonnes. 1200India exported 310,000 tonnes of 1020aluminum in 2011. 1000Primary exported countries includedchina, South Korea, Japan and several 850other smaller Asian nations. 800Despite the slowdown in global 644 624economy, Indian aluminum market 550stayed relatively with overall national 600production cost being 20% less due tohigher quality of bauxite and larger 400coal deposits. However coal generatedaluminum is still expansive incomparison to gas or hydro generated 200aluminum.The total imports were less than 10%of total consumption (around 110,000 0tonnes of primary aluminum products) 1996-1998 1998-2000 2000-2002 2002-2004 2004-2006 2006-2008 2008-2010 20 2010-2012
    21. 21. ALUMINUM PRODUCTION IN COMPARISON WITH GDP / POPULATION / POWER GENERATION / AUTOMOBILE PRODUCTION 1400Aluminum industry in 1359India. 1250 1200 1210 1200Even with global slowdown India increased 1200 1175its production to 1.67 million tonnes. 1100 1115Historically, the supply of aluminum hasbeen higher than the demand in lieu of 1050 1020anticipation thus for 2012-13, India had closeto 30,000 tons of aluminum in reserves. 1000All the big three Indian producers 900(Nalco, Hindalco and Vedanta) are planning 850 850to amping their production to 5 million 821 800 TOTALtonnes. 800 779 ALUMINUM 750Increase in GDP, growth in population PRODUCTION in 699 689directly impacts automobile thousand tonnesdemand, construction demand and 644 650 TOTAL GDP in 624generation of more electricity which cannot 578 billionsbe supported without aluminum. 600 550There is a pressure on global auto makers 500 500to increase fuel consumption in junction with POWERdecrease in emissions. Aluminum plays a vital GENERATION inrole in an automobiles production as it helps 400 kwhin decreasing a cars weight. 300 POPULATION inIn India alone aluminum is used in more 240 millionsthan 3000 applications thus the demand is 201slated to stay strong. 180 200India has high deposits of aluminum (3300million tonnes) which at presentconsumption can last up to 200 years. Withthe rapid growth in infrastructure and 0defense (aviation) aluminum will be in highdemand for next 10 years. 1996-1998 1998-2000 2000-2002 2002-2004 2004-2006 2006-2008 21
    22. 22. STRENGTHS Availability of large and high quality of bauxite reserves and coal deposits for energy generation. Lower labor costs The Indian Aluminum production is 20% cheaper as compared to the global production. State of the art refineries and mining facilities . Indian Aluminum industry is globalized with two major producers (Hindalco and Vedanta) having global presence. THREATS WEAKNESSESChinese aluminum imports are one of Non-availability of large skilledthe bigger threats due to their lower labor force.costs. S.W.O.T Absence or minimal recycling ofGlobal recession hasn’t affected Indian aluminum .economy much but it has reduced theexport potential to several European Electricity forms a whopping 40%countries. of the production costsThe environmental groups like any About 90% of the electricity is coal based thus adding to the ANALYSISother place, poses a major challengein India scenario; since Aluminum uses environmental cost. .open cast mines, political parties in There is absolutely no taxIndia take the vote banks into account relaxation by the Indianbefore the profitability of a government , thus this affects incorporation. the overall breakeven period. OPPURTUNITIES Emerging Asian economies (South Korea, Vietnam, Thailand) other than china are being tapped into as aluminum consumer. Ever-growing population and rising GDP is beneficial as it increases the propensity for demand. Untapped rural market has a potential for another US$3 billion. Renewable sources of power generation (i.e. Solar energy) can further help reduce production costs. (In some parts of country, there are 355 sunny days) 22
    23. 23. References-Upon Request-Rohan Krishan 23
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