Development Growth & Innovation in Aluminium Sector & the desired Govt. Initiatives - Prof. K S S Murthy, Aluminium Association of India

Presentation by
Prof. K.S.S.Murthy,
Ex-Hon.Gen.Secretary-Aluminium Association of India

ALUMINIUM – SUSTAINABLE SOLUTION TO ALL MODERN
CHALLENGES
Aluminium is a young material and, in little more than a century since its
first commercial production, it has become the world’s second most used
metal after steel. Its high strength-to-weight ratio, durability, formability,
conductivity and exceptional barrier properties make it a fundamental part
of many aspects of our daily lives.
In fact, aluminium is all around us, in essential, functional or decorative
roles. We travel in it, we eat and drink from it, make utensils and objects
from it and use equipment and appliances made of it every day.
Life without aluminium would be quite unthinkable in this day and age. The
demand for aluminium products is increasing year by year, with aluminium
the metal of choice for leading designers, architects and engineers all of
whom are looking for a material which combines functionality and cost-
effectiveness with forward looking form and design potential.

CHALLENGES
Aluminium is an extraordinarily versatile material. The range of forms it
can take and the variety of surface finishes available mean it lends itself to
a wide range of products, many of which we use every day of our lives.
POTENTIAL APPLICATION SECTORS :
Automobile & Transport
Building & Construction
Packaging
Electrical sector
Consumer durables

CHALLENGES

ALUMINIUM IN TRANSPORT Aluminium’s low density, high strength-
to-weight ratio, dimensional stability,
corrosion resistance, formability,
recyclability and crash resistance is a key
driver of lightweight, safe vehicles that
contribute significantly to fuel savings
and safety in transport.
Weight-reduction efforts in automotive design
and construction have increased significantly
in recent years. Every 10 per cent reduction in
the vehicle mass increases fuel economy by
about six to eight per cent. Aluminium is lighter
material than steel and use of aluminium alloys
for body-in-white (BIW) and other subsystem
components would result in reduction of fuel
consumption as well as CO2 emissions.
CHALLENGES

INNOVATIONS
ALUMINIUM IN
TRANSPORT
CHALLENGES

CHALLENGES
ALUMINIUM IN BUILDING AND CONSTRUCTION
Aluminium is a product with unique properties, making it a natural partner
for the building industry. Thanks to its strength, durability, corrosion
resistance and recyclability, it has become an essential product for the
building industry and over the past 50 years its use in building applications
has shown continuous and consistent growth.
• Aluminium is an Energy Bank.
• Ideal material as it can be not only easily be fabricated but also given any kind of
finish.
• It is also highly corrosion resistant besides being light and strong;
• Also it enables efficient cooling and heating as it ensures very good locking between
frame and windows or doors. Further it can also be insulated wherever it is required.
• It is eco-friendly and fire resistant therefore competes very well with plastics and
wood.
• Saves forest wealth and maintains ecology when used as replacement for wood.
• It does not require any periodical maintenance as in the case of wood or steel and
thus the maintenance cost will be very low

INNOVATIONS
ALUMINIUM IN
BUILDING AND
CONSTRUCTION
CHALLENGES

CHALLENGES
ALUMINIUM FORMWORK TECHNOLOGY
This technology is a revolutionary construction system, which has been
quite extensively used in India. Using this unique formwork, walls, floor
slabs, columns, beams, stairs, balconies together with door and
window openings are cast in place

CHALLENGES
ALUMINIUM IN PACKAGING
The unique intrinsic
properties of aluminium
– high formability,
lightweight yet strong,
attractive metallic
appearance, providing a
total barrier to light,
gases and moisture and
recyclability - make it a
preferred packaging
material for food and
drink
Aluminium's ability to form any shape and its
protective qualities have made it the most
versatile packaging material in the world. In
addition, a key benefit is that aluminium foil,
aluminium cans and other aluminium
packaging materials can be fully recycled and
reused an infinite number of times.
The important aspect of aluminium as a
packaging material is its recyclability. In fact
recycled aluminium world over is mostly
derived from aluminium in packaging food,
vegetables, beverages etc., which has lowest
life cycle.

INNOVATIONS
ALUMINIUM
IN PACKAGING
CHALLENGES

CHALLENGES
ALUMINIUM IN ELECTRICAL AND ENGINEERING APPLICATIONS
Aluminium is also widely used in
engineering, e.g. as framing materials.
In particular, it is a key element in the
transmission of electricity.
High-voltage overhead cables have been
made of aluminium for many decades
with the combination of light weight and
excellent conductivity making it the
ideal material.
Aluminium cables are
essential in establishing
smart electric grid mixes
with numerous
decentralised renewable
energy production units

CHALLENGES
ALUMINIUM IN CONSUMER DURABLES AND ELECTRONICS
Consumer durables and electronics Aluminium
has many domestic uses, particularly in the
kitchen. Many day-to-day utensils and kitchen
appliances use aluminium, with its excellent
heat conductivity – 2.5 higher than steel -
making it an ideal component of pots, pans and
baking materials. Manufacturers are also
increasingly incorporating aluminium into a
variety of electronic equipment, including TVs,
tablets, laptops, smartphones. Aluminium
casings are light and strong, aesthetic and
practical and offering greater robustness and
reliability than plastic. Indeed, aluminium is
increasingly viewed as an indicator of premium
quality in electronic devices..
Aluminium’s dimensional
stability, light weight,
durability, conductivity
and recyclability are key
assets in making
aluminium an ideal
material in electronics
and consumer durables,
particularly in premium
products.

INNOVATIONS
ALUMINIUM
IN CONSUMER
DURABLES AND
ELECTRONICS
CHALLENGES

2020
Aluminium in Solar panels Aluminium in Consumer durables
Aluminium in Health Care Equipments 3D printed aluminium parts
provide ideal solutions for
designers’ applications
across a range of industries
– especially automotive and
aerospace.
CHALLENGES

2121
CHALLENGES

2222
CHALLENGES
Indian Aluminium Industry
Plays a vital role in nation’s economy, and is a strategically important
industry due to its role in energy security, national defence, rural
electrification, electricity transmission & distribution, automobile, aviation,
construction and real estate.
One of the key Growth Sector for India and possesses a huge potential to
contribute as a Wealth Creator for nation’s economic growth.
Impact on nation’s economy
1. Very high multiplier effect on investment and turn over
2. Huge employment generation potential
3. Strategic importance as a large quantity of aluminium is used for
infrastructure sector
4. Key contribution in manufacturing through Government’s “Make
in India” programme & “Smart Cities” initiative

Aluminium-Key Industry in the scheme of economic development
- Indian Aluminium demand is growing at a CAGR of 10% and anticipated to
grow more than 4 times by 2030 with the government’s visionary initiatives
like Make in India, Smart Cities, 100% rural electrification, indigenous space
programmes, domestic defence sector revival etc. which will boost domestic
manufacturing and value addition.
- Aluminium Industry has huge potential for contribution for earnings and
savings of Forex to the tune of US $ 8-10 billion.
- Electricity Generation is included in Core Industries due to its national
importance and benefits to the society. Aluminium is one of the main
components of Electrical Transmission and Distribution (accounts for 38% of
total Aluminium consumption in India).
- Aluminium demand is rising in domestic defence sector as special advanced
Aluminium Alloys in aero structures for fighter aircraft and helicopters,
warships, submarines and components for aero frames, engines, radars,
missiles etc.
CHALLENGES

Indian Aluminium Industry- Huge Contribution to Human Capital
- Aluminium Industry employs around 7.5 Lakh people directly & in-directly and will
add another 5 lakh jobs at full capacity utilization.
- The growth of primary aluminium industry has multiplier effect on further
development of downstream industries and generating employment, thereby
increasing further the capital outlay and employment opportunities considerably.
CHALLENGES
Aluminium- A key input in Infrastructure Sector
- Aluminium plays a critical role in building blocks of India’s economy.
- Key sub sectors of Infrastructure sector are the major consumers of Aluminium
in India.
- Aluminium is primarily consumed in Electrical (38%), Transport (32%) and
Construction sector (10%), accounting for 80% of India’s aluminium
consumption in key Infrastructure Sectors.

2525
INDIAN ALUMINIUM INDUSTRY: GOVERNMENT INITIATIVES
As part of the Make in India initiative 25 Focus sectors have been identified.
Majority of these key focus sectors are a major consumers of Aluminium in
India – automobiles, auto components, aviation, construction, defence
manufacturing, electrical machinery, electronic system design and
manufacturing, ports, railways, renewable energy, roads and highways,
space, power etc.
CHALLENGES

2626
CHALLENGES
Automobile / Auto-components Industry:
India is currently the sixth largest producer in the world with annual
production of 25 million vehicles (FY 2016-17). By 2026 it is expected to be
the third largest automotive market by volume.
This sector has grown by 24% in last 5 years with a growing working
population and an expanding middle class being the key demand drivers.
In India an average of 40 kg aluminium is used for a car against an average
of 150 kg in the developed countries. There is a tremendous scope for
increasing aluminium use in Automobiles as light weight vehicles are more
energy efficient. Moreover use of aluminium in automobiles is directly linked
to cutting CO2 emissions.
Domestic Aluminium Industry has developed key special alloys for Auto
Industry substituting imports.

2727
CHALLENGES
Aviation
India is one of the fastest growing aviation markets and currently the ninth
largest civil aviation market in the world and projected to be the third largest
aviation market by 2020.
The Indian aviation sector is likely to see investments totalling USD 15
bullion during 2016-2020 of which USD 10 billion is expected to come from
the private sector.
Passenger traffic is growing at 20% per annum in the last 2 years.
By 2020 the plan is to increase the number of operational airports to 250, and
Indian carriers to increase their fleet size to reach 800 aircraft.
Aviation sector will be a big demand sector for Aluminium in coming years

2828
CHALLENGES
Defence Sector / Domestic Defence Manufacturing
India is one of the largest importers of conventional defence equipment and
spends about 31.1% of its total defence budget. About 60% of its defence
requirements are met through imports which offers a huge opportunity for
import substitution.
The recent defence policy promotes indigenous defence manufacturing and
allows participation of private companies for defence sector.
This will promote self-reliance, indigenisation, and technology upgradation,
besides helping in building domestic capabilities and also bolster exports in
the long term.
This will boost up Aluminium demand as special advanced Aluminium Alloys
used in aero structures for fighter aircraft and helicopters, warships,
submarines and components for aero frames, engines, radars, missiles etc.
Domestic aluminium industry is very much capable to meet these requirements
for domestic defence manufacturing.

2929
CHALLENGES
Construction:
Construction sector in India will remain buoyant due to increased demand
from real estate and infrastructure projects with the increasing population
and rising standards of living.
Investments of USD 650 Billion in urban infrastructure is estimated over next
20 years.
100 Smart Cities and 500 AMRUT Cities with investment of 2 trillion rupees
in next five years.
Construction sector accounts for 10% of total aluminium consumption in
India and is expected to increase with the rapid pace of urban development
programmes in India.

3030
CHALLENGES
Electrical Sector / Electrical machinery:
Government’s target of ‘Power for All’ and 24x7 power availability by 2022 which will
generate huge demand for power transmission & distribution infrastructure.
Incentives for capacity addition in power generation will increase the demand for
electrical equipment and machinery.
Rapid increases in sectors such as infrastructure, power, mining, oil and gas, refinery,
steel, automotive and consumer durables and industrial production will fuel further
growth.
Indian electronics market is one of the largest in the world and anticipated to reach
USD 400 billion by 2020. Major government initiatives like Digital India, Electronics
Manufacturing Clusters (AMCs) scheme, National Knowledge Network & National
Optical Fibre Network will create large market.
Electrical sector is the biggest consumer of Aluminium in India and accounts for 36% of
total consumption and this sector is expected to witness high growth for aluminium
demand.

3131
CHALLENGES
Ports and Shipping:
90% of the country’s trade by volume and 70% by value is moved through maritime
transport. In last four years 118 projects involving investment of USD 7.73 billion
have been approved. Ports Project with investment of USD 10 billion identified for
award during the next five years. The upcoming projects of ports development, port
services and ship building & repair facilities will create high demand of aluminium
and can be catered by domestic aluminium industry.
Railways:
Indian Railways has 3rd largest railways network and 4th largest rail freight carrier in
the world.
100% Foreign Direct Investment (FDI) in the railway infrastructure segment has been
allowed recently which has opened up opportunities for participation in infrastructure
projects such as high-speed train projects, dedicated freight corridors to and from
ports, railway electrification, high-speed tracks and suburban corridors, boost
passenger amenities, modernization of stations, provision of foot-over bridges,
escalators etc.
Proposal to harness solar energy by utilising rooftop spaces of railway stations,
buildings and railway land.
Domestic Aluminium industry will play a key role by catering aluminium demand for
modernization of Indian railways.

3232
CHALLENGES
Renewable Energy
India has the fifth largest power generation portfolio in the world and targets 175 GW
of renewable power by2022 which will include 100 GW of Solar power. With current
solar power capacity of 13 GW the sector will grow over four times in next few years.
The National Solar Mission aims to promote the development and use of solar energy
for power generation and other uses and targets 100 GW solar capacity by 2022
creating a positive environment and will offer massive opportunities across the value
chain. With such a target for capacity expansion in renewable energy sector the
demand of aluminium will grow by four times in solar power sector.
Space
In the last few years Indian Space programs have seen an accelerated growth over the
past decade. India is now among the top few counties in space exploration
programmes with recent milestones and success of Mars Mission (Mangalyaan),
Lunar Mission (Chandrayaan) and other major satellites. Foreign Direct Investment
(FDI) up to 100% is allowed in satellites-establishment and operation, subject to the
sectoral guidelines of the Department of Space/ISRO, under the government route.
The growth of space exploration programmes is also linked to demand of high quality
and special grade advanced alloys aluminium which can be supplied by the domestic
Aluminium industry.

CHALLENGES
Aluminium industry is forging ahead with rapid expansion in both Primary metal
and Downstream sectors. Further, as the country forges ahead for rapid growth in
manufacturing, as planned by our esteemed Government, under the leadership of our
dynamic Prime Minister Shri Narendra Modi Ji, Aluminium Industry will respond
equally strongly to this mission by rapidly expanding the production and
consumption of Aluminium involving very large investments at various stages of
manufacturing of aluminium and its end use products.
Global Aluminium consumption growth rate is being driven by China & India. The
consumption of primary Aluminium has risen sharply since 2002 and saw a significant
growth at a CAGR of 10%. Aluminium demand in India is anticipated to grow more
than times by 2030 with the ongoing government’s visionary initiatives like Make in
India, Smart Cities, Power for All, indigenous space programs, domestic dense sector
revival, boosting domestic manufacturing, development of infrastructure and growing
automotive & aviation sectors in India.
India can sure find a prime position in global map

Indian Aluminium Market Growth
2,425
2,200
1,877
1,515
2,7
05 2,5
88
2,8
40
FY09 FY10 FY11 FY12 FY13 FY14 FY15
1
7
Aluminium will ‘Outpace’ the GDP growth
CHALLENGES

CHALLENGES
Aluminium consumption in India is poised to grow from 3.3 million tonne (mt) in 2015-
16 to 5.3 mt in 2020-21 riding on a host of government initiatives like, Make in India,
Smart Cities, Housing for all, rural electrification, and freight corridors.
Aluminium Industry will respond equally strongly to this mission by rapidly
expanding the production and consumption of Aluminium involving very large
investments at various stages of manufacturing of aluminium and its end use
products.
• Enhanced capacities would require skilled /semi-skilled manpower
• Domestic Industry would be self sufficient to meet the growing requirements
• National Capital Goods Policy intends to boost manufacturing of capital goods to
Rs 7.50Tn by 2025.
• The Solar Cities initiative plans a min.10% reduction in conventional energy
demand. Aluminium key to the success of this project
• All administrative hurdles encountering in production of Primary Metal especially
relating to allocation of mines & coal blocks, transportation in particular rail, road,
encouragement to generate capital power and avoidance of duties on captive
power are taken care vide government initiatives to promote production of Primary
Metal.

CHALLENGES
THANK YOU

Development Growth & Innovation in Aluminium Sector & the desired Govt. Initiatives - Prof. K S S Murthy, Aluminium Association of India

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Development Growth & Innovation in Aluminium Sector & the desired Govt. Initiatives - Prof. K S S Murthy, Aluminium Association of India