• Aluminium compounds make up 7.3% of the earth's
• Aluminium is the third most available element on the
• Currently Aluminium is second most used metal in the
• 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.
• 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
• 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.
• 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.
Aluminium Usage in India(%)
• Hindustan Aluminium Company (HINDALCO), National.
• Aluminium Company (NALCO).
• Bharat Aluminium Company (BALCO).
• MALCO(Madras Aluminium Company).
• INDAL(Indian Aluminium).
• 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
• 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
• 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
• 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.
• 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
• Highly concentrated industry with only five primary plants
in the country.
• Controlled by two private groups and one public sector
• 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.
• 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
• The per capita consumption of the metal is only 1.3kg,
the country has a huge reserve of good quality bauxite
• 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
• India is expected to have an installed aluminum capacity
of 1.7 to 2 million tons per annum by 2020.
•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
•High cost of energy.
•Higher duties and taxes.
• Labour laws.
• Dependence on imports for aluminum
manufacturing equipments & technology.
• Market fluctuations and China’s export
• Global economic slowdown.
• Governance issues.
• Rapid Urbanization.
• Increasing demand for consumer
• Untapped rural demand.
• Increasing interest of foreign aluminum
producers in India.
• 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)