Aluminum is the third most abundant element on Earth and the second most used metal. India has a long history of aluminum production dating back to 1938. It is now the eighth largest producer globally. The key companies in the Indian aluminum industry are Hindalco, NALCO, and BALCO/Sterlite Industries. Aluminum is used widely in power, transportation, construction, and packaging. While India has abundant bauxite reserves and a growing market, high energy costs and infrastructure limitations pose challenges for the industry. Further expansion and meeting rising domestic demand is expected to make India one of the top aluminum producers by 2020.

1. Aluminium Industry
By: Rahul Ranjan

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. Process

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. • 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. Applications
• Power.
• Transportation.
• Construction.
• Packaging.
• Consumer Durables.
• Engineering.

7. 48
15
13
10
7
7
Aluminium Usage in India(%)
Power
Transport
Construction
Packaging
Consumer Durable
Other

8. Top Players
• Hindustan Aluminium Company (HINDALCO), National.
• Aluminium Company (NALCO).
• Bharat Aluminium Company (BALCO).
• MALCO(Madras Aluminium Company).
• INDAL(Indian Aluminium).

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. • 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. Location of Key Companies

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. 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. • 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. 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. 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. 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. • 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. 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. Refrences
• http://business.mapsofindia.com/aluminium/
• http://www.indianmirror.com/indian-industries/aluminium.html
• http://www.scribd.com/doc/19149792/Indian-Aluminium-Industry
• http://www.moneycontrol.com/stocks/top-companies-in-
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. Thank you