The Indian aluminium industry is poised for significant growth in the coming years, despite challenges posed by the COVID-19 pandemic. AlCircle’s research indicates a promising future, with aluminium usage in India projected to grow at a CAGR of 6.7% over the next five years, reaching 4.84 million tonnes by 2026-27.
Key Growth Drivers
Several sectors are expected to contribute to this growth:
- Electrical and Electronics: This sector is anticipated to be the largest consumer of aluminium, with usage reaching approximately 1.69 million tonnes by 2026-27.
- Transportation: The transportation sector’s aluminium consumption is also set to increase substantially, growing at around 7.2% per annum to reach 1.37 million tonnes by 2026-27.
Industry Overview
The Indian aluminium industry encompasses various segments, including:
- Primary aluminium
- Aluminium extrusions
- Aluminium rolled products
- Alumina chemicals
These segments cater to the demands of diverse sectors such as engineering, electrical and electronics, and automobiles.
Production and Exports
India has witnessed substantial growth in aluminium production, with exports of primary aluminium steadily rising. In fiscal year 2021, exports accounted for 54% of the total primary aluminium production.
Key Players
The Indian aluminium industry is dominated by major players such as:
- Hindalco Industries
- National Aluminium Company Limited (NALCO)
- Bharat Aluminium Co. Ltd. (BALCO)
- Vedanta Aluminium
Strategic Implications
The positive outlook for the Indian aluminium industry presents significant investment opportunities. The projected growth and expanding applications of aluminium across various sectors make it a key area for strategic planning and decision-making for businesses looking to expand or invest in the Indian market.
Source-
https://www.alcircle.com/reports/primary-aluminium/detail/325/outlook-for-the-indian-aluminium-industry
