Indian Aluminium Industry: Economics

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Table of Contents
EXECUTIVE SUMMARY4

PREFACE5

Aluminium as Commodity5

INTRODUCTION6

Contribution to GDP7

Employment Generation7

ALUMINIUM PRODUCTION8

Process Flow8

Inputs of Production9

Bauxite9

Power12

Other Raw Materials used12

Production Method12

Aluminium- Products14

GOVERNMENT POLICIES15

MAJOR PLAYERS16

National AluminiumCompany (NALCO)16

HINDALCO Industries16

Sterlite Industries17

INDUSTRY CONCENTRATION19

Aluminium concentration20

Extrusion concentration21

Foils concentration22

Wire Rod concentration23

PRODUCTION CAPACITY24

SECTOR CONSUMPTION25

MARKET STRUCTURE28

Graphs30

In the short run30

In the long run31

GLOBAL INDUSTRY32

PERFORMANCE36

Recession36

Global demand falling36

Increased inventory38

Production Cuts38

Delay in Capex plans by Global Players39

Falling Prices40

SWOT ANALYSIS43

COMPETITORS45

GROWTH PROSPECTS46

Low cost advantage46

Market advantage46

Sustained demand46

Cost advantage in bear case46

Government future plans47

CAPEX Plans47

Net Exports48

Forward integration48

Growing demand for future products48

CONCLUSION49

BIBILIOGRAPHY50

EXECUTIVE SUMMARY

The objectives of the study are carrying out analysis of Indian Aluminium Industry and carry out the SWOT analysis.

Aluminium is the most widely used non-ferrous metal. Many uses of aluminium lie in Transportation, Packaging, Construction, household items, watches and notebook computers (Apple),Street lighting poles, sailing ship masts, walking poles etc, Outer shells of consumer electronics, Electrical transmission lines for power distribution, MKM steel and Alnico magnets, Super purity aluminium (SPA, 99.980% to 99.999% Al), used in electronics and CDs, Heat sinks for electronic appliances such as transistors and CPUs, Substrate material of metal-core copper clad laminates used in high brightness LED lighting, Powdered aluminium is used in paint, and in pyrotechnics such as solid rocket fuels and thermite.

The report aims at analysis of following major points related to Aluminium Industry:

1. Growth Prospects

2. Competitor Analysis

3. Market Structure

4. Government Policy

5. SWOT analysis

6. Major Raw materials

7. Past performance

8. Present Scenario

9. Contribution to GDP

10. Export/Import Potential

11. Employment generation

12. Industry concentration

13. Global Integration

14. Others

PREFACE

“Meeting the needs of the present without compromising the ability of future generations to meet their own needs.”

- Brundtland Commission Report 1987

Aluminium is a young and modern metal. It has only been produced on an industrial scale since 1886 when Hall and Heroult independently discovered how to produce aluminium through electrolysis. In 1900 annual output of aluminium was 1,000 tonnes. By the end of the 20th century the annual production had reached 32 million tonnes comprising 24 million tonnes of primary aluminium and eight million tonnes from recycled metal. This makes aluminium the world’s second most used metal. A world without aluminium has become unimaginable. The business traveler, the tourist and the freight company are dependent on it as the commercial aviation and space industries would never have achieved ‘lift off’ without aluminium. The metal makes a key contribution to fuel efficient engines in cars and trucks, as well as to high speed rail and sea travel. By reducing the vehicle’s weight, it cuts down on fuel consumption and emissions without compromising size or safety. Aluminium facilitates the construction of corrosion resistant and low-maintenance buildings. Around the world, most long distance overhead transmission and distribution lines are made...
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