Presentation on Future Prospects Aluminium in India by Aluminium Association of India during Mtlexs : Make In India - Vision 2022 for Non Ferrous Metal Industry

1. ALUMINIUM ASSOCIATION OF INDIA
No. 118, Ramanashree Arcade, 1st Floor , 18, M.G. Road, Bangalore – 560001, India
Tel :+91-80-25582197 / 25582757 , Fax : 91-80-25582757
e-mail : aluminiumaai@gmail.com / aai@aluminium-india.org
Website : http://www.aluminium-india.org

2. Bauxite: India is endowed with large deposits of high quality bauxite ore, amounting
to almost 5% of the world’s reserves, totalling to about 3 billion tonnes. At 5.3 million
tonnes of aluminium production, (expected capacities by 2015) these reserves are
likely to last for 100 years. At 10 million tonnes per annum production, which India
should reach between 2020 & 2025 our bauxite reserves will last for 45-50 years.
Power (Coal): All Indian primary metal producers have captive power plants.
Greenfield smelters are also being planned, based on captive power generation, using
coal. India’s 250 bn tonnes non-coking coal reserves (proven and indicated), are the
fourth largest in the world.
Technical Manpower: India has a formidable pool of manpower - both skilled and
unskilled; to support the manufacture of aluminium, which is a labour-intensive
process.
WORLD BAUXITE
RESERVES
INDIA : 5TH IN THE
WORLD
Total Reserves of India = 3290
Million Tonnes
INDIA ADVANTAGE

3. The Three major producers are Vedanta Group, Hindalco, and
state owned Nalco who mine / procure bauxite and convert it
into Aluminium ingots . These three together account for the
majority of share of total domestic aluminium production.
Investment of Rs. 1.2 Lakh crore has already been made for
additional capacity of 2.0 mn TPA, taking the total production of
primary aluminium to 4.1 mn TPA by FY’17.
The Aluminium Industry in India currently employs more than 7.5
lakh people directly & indirectly and with the expansion
schedule of Primary Aluminium Suppliers, the employment is
estimated to cross over 14 Lakhs.

4. Indian Aluminium Market
Primary (kT)
FY11 FY12 FY13 FY14
FY 15
(Exp)
Qty
(kTPA)
Share %
Qty
(kTPA)
Share %
Qty
(kTPA)
Shar
e %
Qty
(kTPA)
Share
%
Qty
(kTPA)
Share
%
Production 1629 1672 1725 1730 1933
Export by
Indian
Producer
300 310 346 488 622
Domestic
Sales
1327 60% 1365 56% 1380 51% 1239 48% 1229 43%
Unwrought
Import
228 10% 238 10% 308 11% 352 14% 370 13%
Scrap Import 472 21% 589 24% 739 27% 724 28% 875 31%
other
Imports
178 8% 232 10% 280 10% 273 11% 223 8%
Total Import 878 40% 1059 44% 1327 49% 1349 52% 1597 57%
Aluminium
Market
2205 2424 2707 2588 2826

5. Consumption pattern of
aluminium in India is
different from that of
world.
The largest industry is
electrical industry
accounting for about 48%
of total aluminium
consumed in the country
followed transport sector
with 15%, construction
with 13%, machinery &
equipment with 7% and
consumer durables with
7% of total consumption.
Consumption pattern

6. PER CAPITA CONSUMPTION
(IN KGS)

7. 7
GLOBAL ALUMINIUM DEMAND GROWING STEADILY, SPURED
BY GROWTH IN INDIA AND CHINA

8. 8
ECONOMIC GROWTH – THE FUNDAMENTAL DRIVER FOR
ALUMINIUM DEMAND

9. Employment Generation
The Aluminium industry is very labour-intensive and Aluminium production generates
huge employment opportunities. The industry has the potential to employ almost 3.5
million people by the year 2015, and 6.7 million people by 2020 which will be about 1.1% of
the Indian Population, and a significantly larger proportion of the work-force.
Revenue Generation
The government exchequer stands to benefit from a growing Aluminium industry, through
increased collection of excise duties and taxes. The government revenue is expected to
Reach 33,000 crore in 2020.
The Aluminium Industry, is therefore of
Strategic Economic importance to India

10. Aluminium metal demand to grow at double digits for the year, as
automobiles, construction and power sectors continue to boost metal
consumption
ALUMINIUM
CONSUMPTION
GROWTH IN POTENTIAL APPLICATION SECTORS

11. ALUMINUM IN BUILDING ARCHITECTURE/
INFRASTRUCTURE
By 2020, the construction sector in
India is projected to emerge as the
largest end use sector for Aluminium.
The overall consumption by the sector
is estimated to grow at a CAGR of 18-
20%, to around 1700 kt by 2020.
This sector holds ample promises for
the future of Aluminium in India,
provided investments are channelised
into modernisation and expansion of
fabrication units, catering to the
Construction sector.

12. ALUMINUM IN TRANSPORT SECTOR
8.4
38
Mn LakhsMn Lakhs Lakhs
1.2
5.6
0.6
1.1
0.5
2.3
2
9.5
2.2
3.3
Lakhs
Currently the
11th largest
producer.
Expected to be
the 7th largest by
2016
2nd largest 2W
manufacturer in
the world
Largest 3W
manufacturer
in the world
Projected to be
the 4th largest
truck producer
by 2016
IR is the world’s
4th largest goods
carrier with a
network of over
62800 km and
runs 5500 goods
trains daily
CAGR 10-12%CAGR 12-14% CAGR 10-12%CAGR 10-12% CAGR 10-12%LCV- CAGR 10-12%
2007
2020
Source: SIAM, RDSO, NATRIP, AvalonConsulting Research & Analysis
With high fuel prices and stress on global warming, automotive manufacturers are
leaning towards weight reduction, and hence use of more Aluminium in vehicles.
Additionally, Aluminium also has good impact absorption quality. The developed
countries have on an average 140 kgs of Aluminum per vehicle and India is at 40kgs
levels. The Automotive Industry in India is expected to grow 4-5 times from USD 34 bn to
USD 150 bn by 2016.

13. ALUMINIUM IN CARS

14. 14
14
Last year, Phinergy and Alcoa announced the development of an
aluminum-air battery that could give an electric car a potential range of
1,000 miles (1,609 km), though stops for a water top-up would be
needed every couple of hundred miles. Now the companies have
debuted the technology on the track at Montreal’s Circuit Gilles-
Villeneuve.
ALUMINIUM IN ELECTRIC CARS

15. 15
15
ALUMINIUM IN
TANKERS AND
SHUTTLE VEHICLES

16. 16
16

17. 17
ALUMINIUM RAILWAY WAGONS
•First in India. Manufactured for NALCO, Fabrication: BEML,
Al. Extns & Plates supply: HINDALCO.
•7000 railway wagons expected to be produced in India in five years.
17

18. India's first electric bus launched in Bangalore
Zipping past the smoke-emitting regular buses, the orange
beauty stands out.

19. Latest Developments
The Ford F-150 - PICK UP TRUCK
Audi A8
The Jaguar XF’s aluminum body
The Volkswagen NILS,
Single-seat electric vehicle

20. ALUMINUM IN POWER
The power sector is currently the largest consumer of Aluminium in India. Bulk
of the Aluminium usage is in overhead conductors and power cables used in
generation, transmission and distribution of electricity. Aluminium is used in
switchboards, coil windings, capacitors, and many other applications as well.
With the continued growth in the power sector, particularly in the eleventh five
year plan, Aluminium usage in the power sector will continue to be
predominant.

21. ALUMINUM IN PACKAGING
The contribution by the packaging sector is estimated to be in the range of 15-
20% of the total Aluminium consumption ,in line with Global trends, by the year
2020, with the Aluminium demand projected to be about 350 kt. Applications like
usage in rigid food containers, cans for chemicals and insecticides, etc. will
increase Aluminium consumption in the packaging sector

22. Indian Aluminium Industry:
India’s Aluminium Production is self-sufficient to cater to the domestic demand. The production
growth scheduled for commissioning will ensure metal availability for the growing domestic
consumption.
All Fig in KT (‘000 mt) FY15 FY16 FY17
Sesa Sterlite 602 913 1740
BALCO 385 520 575
Vedanta 987 1433 2315
Nalco 315 460 460
Hindalco 850 1338 1354
Indian Aluminium Production 2152 3231 4129
Indian Producer’s Domestic Sale 1265 1405 1515
Unwrought Un alloyed & Alloyed Import in India
393 400 400
Total Consumption 1658 1805 1915
Total surplus 494 1426 2214
Investment of Rs. 1.2 Lakh crore has already been made for additional capacity of 2.0 mn TPA,
taking the total production of primary aluminium to 4.1 mn TPA by FY’17.
FY’15 numbers are on annualized basis
SUMMARY

23. With the continuing trend of economic growth, per capita income is likely to increase.
 At the higher level of income, rapid rise in demand and consumption of aluminium is
expected.
Higher consumption levels in packaging, building and structural, automotive and consumer
durable sectors, besides normal consumption in electrical, transport and other industrial
sectors will contribute to this.
Taking into account the population growth and the ‘Per capita’ consumption increase, it is
expected that the domestic consumption would be around 3.0 Million Tonnes by the end of
2017. This will exceed the planned growth of 9% projected.
Various steps are to be taken for promotion of aluminium sector and facilitating its growth.
India is the right place where aluminium industry can hope to see a bright future.
All these factors indicate that there is a highly promising future for the aluminium industry
in the country further stimulated by the huge global market potential that will give a thrust
to the industry.

24. Aluminium - CO2 Emissions

25. Recycling of aluminium is encouraged all over the world and India is also
adopting similar policies, as recycling is lees capital intensive, less polluting
and more energy efficient. Recycling industry may contribute for over 35-
40% of total aluminium consumption in the country.
Aluminium - Recycling

26. 26
BY 2030, ALUMINIUM CONSUMPTION GROWTH WILL
BE DRIVEN BY CHINA & INDIA
2005 2030
Source: CRU June’07
World demand-31.9 Mn tonnes World demand-73.7 Mn tonnes
China
India
23%
22%
8%5%
4%
8%
3%
22%
5%
North America EU/EEA Japan CIS & Other Europe Latin America
SE Asia India China Others
India
China
14%
13%
4%
5%
5%
10%8%
35%
6%
Aluminium demand in India to grow more than 5 fold by 2030

27. ALUMINIUM ASSOCIATION OF INDIA
Exclusive Features of AAI
AAI Interaction – National Level
•Involved in the preparation of Five Year Plan documents, National Policy on
Aluminium, Budget Recommendations, FTA, WTO, VAT etc.
•Routinely consulted by Govt of India on all policies and economic issues
concerning the growth of aluminium and its industry.
•Represented on Bureau of Indian Standards, Central Pollution Control Board etc.
AAI Interaction – International Level
•Interaction with all international Aluminium Associations.
•Permanent invitee for the World Aluminium Leaders meet conducted by
International Aluminium Institute (IAI)
• Member of World Body of Aluminium Associations.

28. How AAI has helped in the growth of Aluminium Industry in the country ?
 By disseminating vital information on technological developments and on
Various applications of aluminium, all of which are significant to India vide
National & International Seminar / Workshop / Conferences
 By providing statistical / Techno-commercial information on aluminium to the
members, Government etc. through print and electronic media.
 By offering advise on technical problems, marketing issues
 By forwarding large number of enquiries received from within country and
abroad regarding various aluminium products.
 Also, by forwarding enquiries received from foreign embassy of the country.
 By arranging visits / participation by AAI members in various International
Seminar & delegations.

29. GOVERNMENT OF INDIA

30. MINISTRY OF MINES
Aluminium Mission Plan
AAI is anxiously awaiting for adoption of the Aluminium Mission Plan.
A comprehensive document prepared by country’s leading consultancy firm and later
revised based on the comments received from member organizations and suggestions
received during the Seminar on Consultation with Stakeholder on Aluminium Mission Plan
– 2010-2020 held at New Delhi organized by the Ministry through JNARDDC on 1st Dec
2010 at New Delhi. Later, the revised version was submitted to Ministry of Mines,
currently under consideration.
Aluminium Mission Plan is very imminent as Indian Aluminium Industry, both Primary
metal and downstream industries, is very vital for the country as it relates to the beneficial
utilisation of natural resources (Bauxite & Coal) and vast manpower

31. Representation on Importance of coal security in Aluminium Industry and
Coal requirement of Aluminium Industry was sent to the Secretary Ministry
of Coal.
Recently, Office Bearers of AAI had met Secretary, Ministry of Coal in
person and explained the need for allocating sufficient coal blocks for
aluminium sector
Secretary (coal) was in agreement and assured that adequate number of
coal blocks will be available for aluminium industry to bid for.

32. Technology Roadmap For Indian Aluminium Industry
Technology Roadmap For Indian Aluminium
Industry, a document which will be the guide
to the future development of an industry was
prepared by Aluminium Association of India,
approved by Technology Information,
Forecasting & Assessment Council (TIFAC), a
registered society under Department of Science
& Technology.
It will act as a guideline document assisting
planning authorities, industries, R&D
organizations and academic institutions in
ensuring sustenance of demand and filling up
of competence gap, enabling various
Ministries to fund the projects along with
industries and R&D organizations
AAI has approached TIFAC once again
seeking its support for carrying out
exclusive Roadmaps for Downstream
Sectors including Recycling and Enduses.

33. INTERACTION WITH MINISTRY OF COMMERCE AND
INDUSTRY
INTERACTION WITH MINISTRY OF COMMERCE AND
INDUSTRY
AAI with a view to instil confidence of aluminium industries in the country, constantly
seek the support and guidance of various Ministries of Govt. of India vide Representations
on behalf of Aluminium Industries, presenting views on Budget, Five Year Plan
Documents, Pollution Policies, Trade Agreements, Standardization etc. and have been
receiving favourable responses from the Government.
AAI is glad to inform that, in response to one such representation on Anti Dumping Duty
on imports of Alloy Road Wheels from China, Thailand and Korea, to the Ministry of
Commerce and Industry, acceding to the request made by AAI, Ministry of Commerce &
Industry Department of Commerce Directorate General of Anti-Dumping & Allied Duties,
has recommended imposition of anti-dumping duty on imports of Alloy Road Wheels from
China, Thailand and Korea, so as to remove the injury to the domestic industry in the
Final Gazette.
Ministry of Commerce and Industry Letter no. F.No. 14/7/2012-DGAD dtd. 19th March 2015 refers.

34. INTERACTION WITH MINISTRY OF FINANCE
CUSTOMS DUTY ON ALUMINIUM PRODUCTS AND IMPORT DUTY
ON ALUMINIUM SCRAP
A representation was submitted to Ministry of Finance requesting
 An increase in basic customs duty on Aluminium products (Chapter 76 –
from 7601 to 7616) from 5% at present to 10%
 To bring import duty on Aluminium scrap (CH 7602) on par with the duty
on primary metal, in line with the duty structure for all other base metals.
(AAI letter Ref: AAI/957/PBR/2012-13/444 dtd. 12th
March 2013)
Government of India, Ministry of Finance (Department of Revenue) vide its
Notification No. 25/ 2013-Customs dated 8th May, 2013 increased the Aluminium
Scrap duty from 0 (Zero) to 2.5%.

35. CONSORTIUM R&D PROJECT ON LIGHTWEIGHT CITYBUS
Government of India is very keen to introduce light weight
buses so that it will have twin benefits: improve fuel
efficiency and reduce CO2 emission. By adopting this policy,
Government of India can effectively check the outgo of
foreign exchange for importing oil and also complying with
Corporate Average Fuel Economy (CAFE) standards.
AAI is one of the Consortium partners for the Department of Heavy Industries
approved project -Lightweight City Bus.
A tentative Project Proposal on Design and Development of a Novel, Lightweight Aluminium-
Intensive, Electric Passenger Vehicle of Indian Institute of Science has been submitted to
Department of Heavy Industries, Govt of India.
BEML Limited is contemplating to enter into manufacturing of Aluminium coaches at its
Palakkad plant and is in the process of preparing a Report on the potential of rail coaches in
Indian railways as well as the export potential and submit the same to the Railway Board. In
this regard, they have approached us to share with them any relevant literature/ extracts of
presentations on the potential of aluminium coaches in India. Information / data collated
from our members was shared with BEML for further processing.
It is very evident that Lightweighting of Automobiles will be the inevitable solution for fuel
crisis being faced by our country.

36. LIGHTWEIGHTING OF AUTOMOBILES THROUGH ALUMINIUM -DHI
Screening/Technical Committee
AAI has been working hard to develop appropriate technologies for lightweighting of automobiles through
initiation and participation in the Light bus project (Sponsored by Department of Heavy Industries) It is very
evident that Lightweighting of Automobiles will be the inevitable solution for fuel crisis being faced by our
country.
National Automotive Board (NAB) has been constituted by Dept. of Heavy Industries for development of
automotive industry. DHI, though NAB has decided to draw up a comprehensive report for lightweighting of
automobiles. This task is being taken up as a Mission and besides funding development activites, appropriate
fiscal incentives are also being considered to promote lightweighting of automobiles in the country.
In order to pursue this objective vigorously Department of Heavy Industries, Govt of India Industry has
constituted a Screening/Technical Committee under the Chairmanship of Shri Ambuj Sharma. Prof.
K.S.S.Murthy, Hon. Gen. Secretary has been nominated by DHI as a member Screening/Technical Committee
on behalf of Aluminium Association to represent Indian Aluminium Industry. Having been involved in this
Committee, AAI do hope that it will be able to bring Indian Aluminium Industry and R&D groups in various
institutions closer together for developmental activities relating to Aluminium
Sequel to request from a member company, application of aluminium in Minitrucks and pick-up Trucks and
Trailers, DHI, in particular, NAB was contacted and we were assured of DHI’s support in development of
aluminium intensive vehicles. We were advised to organize a Workshop on this topic.
AAI is interacting with The Automotive Component Manufacturers Association of India (ACMA), the
nodal agency for the Indian Auto Component Industry and Society of Indian Automobile Manufacturers (SIAM)
the apex Industry body representing 46 leading vehicle and vehicular engine manufacturers in India which has
a separate group devoted to Light Weighting

38. ANTI DUMPING DUTY ON IMPORTS OF ALLOY ROAD WHEELS
FROM CHINA, THAILAND AND KOREA
On behalf of one the member organizations, AAI filed an application
with the Designated Authority alleging dumping of “Cast Aluminum
Alloy Wheels or Alloy Road Wheels used in Motor Vehicles,
originating in or exported from China PR, Korea RP and Thailand, for
initiation of anti- dumping investigation and for levy of anti-dumping
duty on the imports of the subject goods, originating in or exported
from the subject countries.
AAI is glad to inform that Ministry of Commerce & Industry
Department of Commerce Directorate General of Anti-Dumping &
Allied Duties, acceding to the request made by AAI, imposed Anti
Dumping Duty on imports of Alloy Road Wheels from China,
Thailand and Korea.

39. 39
AAI, over the past several years, has organized a number of highly successful
programmes, International Conferences, National Conferences, Seminars, and
Workshops on all aspects of aluminium and its technology, market and other related
issues.
Since 1985 AAI has been organizing a major International Conference on Aluminium –
INCAL at regular intervals of 4 to 5 years.
Aluminium Association also being a member of International Body of Aluminium
Associations, have always projected proactive views focusing on the principal objective
of increasing aluminium production and consumption in the country by the way of
promoting aluminium in the application sectors which are fast growing ie., Transport,
Power, Packaging, Building & Infrastructure etc. by the way of Seminars, Round Tables,
Workshops, national and International Conferences etc.
As the member of International Body of Aluminium Associations, all our programmes
are supported by various overseas Associations like., European Aluminium Association
(EAA), International Aluminium Institute (IAI), The Aluminium Association, USA, Japan
Aluminium Association, The Brazilian Aluminum Association (ABAL) etc.Besides
supporting, they also actively participate in the programmes.
All the International Conferences commencing from 1985 hitherto organized by our
Association have always enjoyed the patronage of the Ministry of Mines, the
administrative Ministry for Aluminium and have all been supported by the Indian
Aluminium Industries. The Conferences / Seminars organized by AAI are on the topics
of interest to both applications and research.

40. 40
AAI signed an Memorandum of Understanding (MOU) with The Aluminium
Association, USA,
Ms. Heidi Brock, President- The Aluminium Association, USA expressed her interest in
supporting AAI's initiatives to promote AAI-AAA interactive proposals
An appropriate steps/ action plan for closer interaction between Indian Aluminium Industry
and American industry counterparts with AAI and AAA enabling such interactions is being
worked out.
To arrange visits by AAA members to India and AAI members to USA with Govt. of India's
support under Ministry of Mines, Ministry of Industry(Heavy as well as MSME), Commerce etc.,
and any other programs enabling Indian Aluminium Industry to gain benefit through such joint
efforts by AAI and AAA.
Views of AAI member Companies about their desire to collaborate with American companies
for greater cooperation , perhaps leading to joint ventures or establishing markets in USA
through their collaborating firms, which will enable Technology transfer from US based
companies to Indian member companies in some selected application areas such as
Extrusions, Automobiles, Aerospace, Food processing etc., are being sought.
The present government is committed to development and extremely encouraging to the
growth in manufacturing with scale and technology being the prime objectives. Further, the
government has created a conducive atmosphere for overseas(foreign) companies to invest
/start manufacturing bases in India for their markets. There are absolutely no hurdles what so
ever for such ventures/investments .

41. 41

42. 42
ALUMINIUM ASSOCIATION CAN PROVIDE A PLATFORM FOR THE INDUSTRIES,
R&D RESEARCH INSTITUTIONS AND ENGINEERING COLLEGES TO WORK
TOGETHER TOWARDS HIGHLY PROMISING FUTURE.
JOINT ACTION PLANS CAN BE
WORKED OUT WITH INDUSTRIES /
R&D INSTITUTIONS /
ENGINEERING COLLEGES
TOWARDS ACHIEVING THE GOAL
 To aggressively promote
aluminium as the most
sustainable metal.
 To strengthen aluminum's
position versus competitive
materials.
 To augment consumption of
aluminium in new application
sectors
 To promote new end uses and
technologies
 To resolve misconception about
Aluminium and Health.

43. 43
Members’ co-operation will greatly help AAI to keep pursuing with
Government for safeguarding the interests of Indian Aluminium Industry.
Our Hon’ble Prime Minister, Mr. Narendra Modi and the Government have
been strongly advocating and supporting “Make in India”
programme and it is quite appropriate and timely that Indian Aluminium
Industry take advantage of this favourable situation.