Aluminium Industry is the second most important metallurgical industry in India. It is the second most used metal in India after steel. It is also the fastest growing metal industry in India and has grown several times in the past decade or so. The industry is primarily dominated by companies such as Hindalco and Vedanta, which are privately owned by NALCO.
Rise in infrastructure development and automotive production are encouraging development of aluminium industry in India. Alumium is a non-ferrous metal that is sued to make alloys, castings, wires, cables and pipes.
India has nearly 10% of the world’s bauxite reserves and a growing aluminium sector that leverages this reserve. Demand in the domestic market is expected to raise by 8-10% in the coming years.
Prospects of Aluminium Industry
India’s aluminium consumption is expected to double to over 7 million tonnes in the next five years. Domestic demand is likely to remain robust at 7% in FY19-20, driven by construction and packaging. Recent adoption of lightweight and formable aluminium sheets in vehicle manufacture is set to take the Indian aluminium industry to new heights. This market is expected to record a CAGR of 12% to 15% between CY18 and CY25.