INDIA, MUMBAI, October 7th 2016 (GPN) : CRISIL, a global analytical company providing ratings, research, and risk and policy advisory services and Mtlexs, the first of its kind online marketplace catering to the Non-Ferrous Metal (NFM) industry, unveiled a report on the aluminium industry in India, titled “Indian Aluminium Industry: Geared for growth.” The report, launched at the World Non-Ferrous Conference 2016, states that the consumption of aluminium in India is poised for a healthy growth over the next 5 years, growing from 3.3 MT in 2015-16 to 5.3 MT in 2020-21. The growth is set to ride on the back of a host of government initiatives such as Make in India, Smart Cities, Housing for all, rural electrification, and freight corridors.
The primary demand for increased consumption is expected to come from the Power sector, where aluminium is a cheaper, lightweight substitute for copper in transmission and distribution. Over the next five years, investments from state discoms and central government schemes totaling INR 4.3 Trillion are being planned to expand India’s transmission and distribution network.
The secondary demand for aluminium consumption will ride on the growth in the automotive sector. Stringent vehicular emission norms leading to manufacturers reducing vehicle curb weight have come as a boon to the Aluminium industry, which is now finding ever greater applications in the sector. As consumer sentiment improves, and expectations of faster economic growth hold sway, automobile demand has a very favorable growth outlook for the next 5 years.
On the occasion of the launch, Mr. Suneel Mardia, CEO, MTLEXS, “With a relatively low per capita electricity consumption, very low household penetration of cars, and India on a strong growth trajectory in the foreseeable future, there is significant headroom for growth in the aluminium industry.” He further added, “Traditionally, the Indian aluminium story is linked to the power and automotive sectors, which together take up nearly 60 per cent of the consumption pie. We see that other sector such as consumer durables are also poised to grow at a very healthy rate.”
With a conscious effort toward leveraging technology, encouraging digitization and entrepreneurship, and improving the ease of doing business in India, the foundation for an unshakeable growth story seems firmly in place. The aluminium industry is set to be a huge beneficiary of this.
The report is an endeavor to bridge the information gap and equip the Indian aluminium industry with projections on the domestic demand in the coming years.
