Indian Aluminium Extrusions Industry - Challenges & Oppourtunities


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A brief overview of the Indian Aluminium Extrusions Industry...

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Indian Aluminium Extrusions Industry - Challenges & Oppourtunities

  1. 1. Indian Extrusion Industry The Opportunities & Challenges
  2. 2. Contents:w Extrusions Market in Indiaw Opportunities in Indiaw Towards Solutions
  3. 3. The Indian Aluminium Extrusions Industryw The demand for aluminium extrusions in India was about 300,000 tonnes in 2010w Demand in India is still growing strong inspite of economic fluctuationsw The building & construction industry is the major consumer of aluminium extrusions in Indiaw Future growth will come largely from the solar industry and the industrial sectorw Usage in the automotive industry is still in a nascent stage
  4. 4. Market size: 300,000 tonnes (2010) Industrial 28% Transportation Building & 12% Construction 60%
  5. 5. India’s per capita consumption of extrusions is amongst the lowest in the world 9.0 8.0 7.7 7.0 6.1Per capita consumption (kg) 6.0 5.6 5.0 4.8 4.0 4.0 3.0 2.4 2.0 1.6 1.0 0.2 - Germany Japan China France USA UK Poland India * Data for 2010
  6. 6. A highly fragmented industryw The total capacity for aluminium extrusions in India is about 400,000 tonnesw The industry is highly fragmented with over 60 manufacturers of aluminium extrusions Capacity No. of players > 25,000 tonnes 2 Between 10,000 & 25,000 tonnes 5 Between 5,000 & 10,000 tonnes 12 < 5,000 tonnes 43 Total 62
  7. 7. India – Growing Market Opportunities Market segments Key Observations : w Currently the 5th largest passenger car producer & 8th largest commercial vehicle producer in the Automotive world w The Indian auto industry has grown at a CAGR of 16% in the last 5 years w India is now a export base for many global auto Telecom majors w Aluminium usage is still at a nascent stage Mass Transportation
  8. 8. Aluminium Extrusions Usage in Automotivesw Current usage of aluminium extrusions is restricted to engine mounts, radiator frames, Automotive Production brake components, seat frames & a few other 3,500 minor applications 3,000 2,987w As opposed to the average aluminium extrusions usage of 11.5 kg in Europe in passenger cars, 2,500 the usage in India is as low as 2 to 3 kg per car 2,357 000 units 2,000w Even cars manufactured by European/American 1,778 1,839 manufacturers like Volkswagen, Renault, General 1,500 1,545 Motors & Ford have very low usage of aluminium extrusions 1,000w Supply to this industry would require tough 500 753 520 549 577 tolerance adherence, extremely well 417 - documented production procedures 2006 2007 2008 2009 2010 Passenger Cars Commercial Vehicles
  9. 9. Automotive
  10. 10. India – Growing Market Opportunities Market segments Key Observations : Automotive w Production of equipment for the telecom industry was valued at $11.87 billion in 2010 w Industry is currently facing a lull in growth but is Telecom expected to come back on track next year w Production revenue is set to increase to $23.5 billion by 2014 Mass Transportation
  11. 11. Telecomw Development and sales of enclosures and cooling solution.w Extruded aluminum superior as a heat dissipater.w Outperforms cast aluminum with thermal conductivity that is twice as effective and copper by lower weight.w Cooling fins can be made very narrow, closely spaced and with high degree of precision.
  12. 12. India – Growing Market Opportunities Market segments Key Observations : Automotive Telecom w Metros are being launched in many cities across India Mass Transportation w Bombardier & Alstom have set up operations w Friction Stir Welding technology is not available at present
  13. 13. India – Growing Market Opportunities Market segments Key Observations : w Building industry is the largest consumer of extrusions Construction is now moving heavily into Tier II and Tier Building Industry III cities in addition to Tier I cities w Current demand for extrusions from this sector is largely for simple door & window sections w The usage of building systems and Unitized systems are yet to gain large scale acceptance in the market Solar Power
  14. 14. Challenges in the Indian extrusions marketw Aluminium is still used only for simple applications at present in Indiaw Complex applications, a small market by itself, are catered to through importsw Technical know how is significantly lesser than in Europe & USAw Customers prefer to buy “off the shelf” products; This will have to change with more industrial applications coming inw Price is a key driving factor and India is amongst the most price sensitive markets in the world.w Quality extrusions will cost more , but pays in the long run. Evaluate the whole life costs while deciding where to buy from.
  15. 15. Challenges in the Indian extrusions marketw Building & Construction sector is becoming more quality conscious Architects / Big builders are directly interacting with Extruders for supply of profilesw Some of changes happening are: Wider sections More complex shapes Tighter tolerancesw Focus towards buying ‘Solutions’ rather than ‘off the shelf profiles’ is increasing
  16. 16. India – Growing Market Opportunities Market segments Key Observations : Building Industry w With a large population & high solar insolation , is an ideal location for solar energy production w In 2009, India unveiled a plan to produce 20GW of solar power by 2020; Current production from Solar Power is Solar Power less than 1 GW w Aluminium is the metal of choice for the Solar Panels being manufactured; About 40-50 tonnes of extrusions are used for mounting systems per MW of installation
  17. 17. Mitigating Climate Changew Reducing the carbon footprint will influence all businessesw Government of India has announced 25% reduction in the emission intensity by 2020w Measures to be taken: Mandatory fuel efficiency for vehicles by 2011 Model energy conservation codes for buildings & recommend states to make this mandatory Clean technology in power generation Increase the forest cover
  18. 18. Toward Green Solutionsw At one third the weight of steel and extensive design options, Aluminium is the ideal solution for the building & construction industryw A variety of options for Green solutions in buildings: Photo Voltaic integrated systems Unitized solutions Double skin curtain walling Thermal breaks Sun light louversw Increased popularity of using aluminium formwork and shutters as it improves construction speed and quality significantly
  19. 19. Focus on energy efficiencyw Buildings account for over 40 per cent of the global consumption of electricityw Energy-efficient solutions for buildings are increasingly important This window profile section has a low U-value thanks to aPhotovoltaic integrated solutions for active buildings skeleton of fibreglass-reinforced polyamide that effectively interrupts the thermal path and reduces convection and radiation between the inner and outer aluminium profiles
  20. 20. Building Integerated Photo Voltaic System (BIPV)Solar Integrated curtain wall, National Telecom HQ of Sudan
  21. 21. Towards Solutionsw With growing demands in India, extruders need to find new ways to differentiate themselves from othersw Extruders know the possibilities & limitations of aluminium extrusions and this knowledge needs to be passed on to customers to help design better productsw With more demand expected from the Industrial segments, extruders need to get involved with customers in the design stage itselfw Extruders in Europe & USA have moved further down the value added chain and supply fabricated products to customersw This trend is also slowly being adapted by few Indian extruders
  22. 22. RESERVE YOUR SPACE NOW IN 12,13,14,15 December 2013 * Data Courtesy : SAPA Profiles India Pvt. Ltd. MMRDA Exhibition Centre, Bandra-Kurla Complex Mumbai, INDIA www.zakaluminiumextrusions.comContact : Ahad | +91 98846 88888 |