The aluminium industry in India is on the verge of witnessing a major leap in consumption over the next five years. Major producers are adding significant capacities and investing in new technologies to add more value to their downstream product portfolios. This, they are doing, in order to cash in on the increasing demand primarily in the building and construction sector followed by transportation (metro and high-speed railway coaches), electricals, electronic consumer durables, packaging (aerosol cans and pharmaceutical foils), and next-gen applications like solar reflectors. Defence is another sector where aluminium is being used for making naval ships and surveillance drones.
Experts opine Indian aluminium companies with downstream operations should further consolidate their R&D strategies to remain low-cost yet sustainable over the long term. Here are the top ten aluminium product manufacturing companies in India who are remoulding their R&D strategies to find a bigger consumption pie in the domestic market and abroad:
(Please note, the ranking has been done taking market capitalization by NSE and BSE as one of the key basis factors).
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1. Hindalco Industries: The most profitable of all aluminium manufacturing companies in India, Hindalco’s strength as a downstream products maker grew when it acquired Novelis in 2007. In India, Hindalco manufactures aluminium rolled products at plants located in Odisha, West Bengal, Nagpur in Maharashtra, Renukoot in Uttar Pradesh, and Taloja near Mumbai in Maharashtra. Its extrusion plants are located at Renukoot, Uttar Pradesh and Alupuram, Kerala. There are three modern and well-equipped foil facilities in Nagpur, Maharashtra, Silvassa in Dadra and Nagar Haveli and Kollur in Andhra Pradesh.
Hindalco subsidiary Hindalco-Almex Aerospace Limited manufactures high-strength aluminium alloys for applications in the aerospace, sporting goods and surface transport industries.
In FY2016, the value added downstream production of the company including wire rods grew by 12% over last year to 423 KT. The turnover of the standalone aluminium domestic business increased by 21% to INR17,125 crore vis-à-vis INR14,105 crore in the previous year, despite lower realisations. This was achieved primarily on the back of higher metal volumes and a higher proportion of value-added products.
2. NALCO: National Aluminium Company Limited, the Navaratna PSU of Ministry of Mines, Govt. of India has achieved remarkable growth in production on all fronts in the first quarter of 2016-2017. During the quarter, the company produced 94,496 tonnes of aluminium, up 10% from the corresponding period the previous year. In FY2015-2016, its total aluminium production stood at 3,72,183 tonnes.
NALCO has a 50,000 MT per annum capacity rolled products unit, integrated with the smelter plant at Angul, where it manufactures aluminium cold rolled sheets and coils from a continuous caster route, based on the advanced technology of FATA Hunter, Italy. The company formed a JV company named Angul Aluminium Park Pvt. Ltd. (AAPPL) with IDCO in 2010 to promote downstream and ancillary industries in Odisha.
3. Bharat Aluminium Company: Vedanta Group holds a 51% stake in Bharat Aluminium Co. Ltd. (BALCO), while Govt. of India owns the remaining 49% stake. Balco has many firsts to its credit as far as progressing India’s downstream aluminium growth story is concerned. The company was the first to produce alloy rods for conductors used in the power transmission industry, the first to roll material for Aerospace in the country and the first to set up the widest Hot Rolling Mill in India. The company bagged the much coveted I.M.E.A. India Manufacturing Excellence Gold Award -2016 for achieving production, and product quality as per world standards.
4. Jindal Aluminium is another leading manufacturer of aluminium extruded profiles in India. With 1,00,000 tonnes per annum installed capacity (as per Indian Minerals Yearbook 2013-2014 data) and 10 aluminium extrusion presses, the company is capable of producing a wide range of aluminium extruded profiles, In fact, if we talk about market share, JAL commands approximately 30% market share in India.
5. Sacheta Metals: A public limited company, Sacheta Metals manufactures and exports a wide range of aluminium household articles, plate sheets, coils, foils, and PP closure stocks. The manufacturing unit of the company is located in Sacheta Udyog Nagar in Talod, Gujarat. As per financial results for the three months ended September 30, 2016, Sacheta’s income from operations stood at INR15.17 crore and PBIT (profit before insurance and tax) was INR0.38 crore. Equipped with an updated and sophisticated mill, the company stands to cater to the Indian aluminium household appliances market in the best possible way. Eskay Aluminium Pvt. Ltd is one of the nine group companies of Sacheta Metals.
6. PG Foils: Having started its operations in 1982, PG Foils has come a long way to become one of India’s most sought-after aluminium foil manufacturers. The company was initially licensed to produce 1,800 M/T of aluminium foil a year, and now has an installed capacity of 6,000 tonnes. PG Foils is currently in an expansion mode- banking on an advanced technology upgrade, it is again gearing up to add 6,000 tonnes of capacity over the next few years.
7. Hind Aluminium: Headquartered in Mumbai, Hind Aluminium is a manufacturer of all-alloy aluminium rods, floors, grills, railings, aluminium scrap, aluminium/aluminium wire, and EC grade wire rods used for redrawing into Wires / Strips for the manufacture of Cables, Conductors, Transformer Wires / Strips and various hardware / General Engineering Components. For the quarter that ended September 30, 2016, Hind Aluminium's net sales/income from operations stood at INR95.83 crore and PBIT was INR6.08 crore.
8. Century Extrusion: is one of the large, pure-play aluminium extrusion manufacturers in India. Its production facility is strategically located in Kharagpur (West Bengal), close to the facilities of leading primary aluminium manufacturers in India. CEL possesses in-house facilities for aluminium die manufacturing, melting and casting of aluminium billets and aluminium extrusions manufacturing facility with three press lines.
CEL manufactures extrusions for varied applications, right from electrical and electronic applications to engineering applications. The power sector accounts for the largest revenue proportion of the company. For the three months ended September 30, 2016, total net sales/income from operations of CEL stood at INR41.56 crore, and PBIT was INR1.6 crore. Century NF Casting, one of India's largest manufacturers of aluminium alloys, and CAMCO (aluminium alloys) are the two key group companies of the CEL.
9. Manaksia Aluminium: Manaksia is a multi-division and multi-location conglomerate with a diversified aluminium product business. Its key product categories include aluminium sheets and coils, flooring sheets, pattern sheets, roofing or building sheets, and coils. It has also ventured into secondary specification aluminium alloy ingot production to cater to a diverse range of industries. Manaksia has two aluminium rolling and alloy ingot production units in West Bengal- one at Bankura and the other one at Haldia. For the quarter ended September 30, 2016, Manaksia Aluminium’s total income from operations stood at INR5416.62 lakhs and net profit stood at INR205.84 lakhs.
10. Maan Aluminium: Established in 1989, Maan Aluminium has grown over the last two decades as one of India’s leading aluminium extrusion profile manufacturing companies. In the last four years, its production has increased manifold reaching nearly 9000 tonnes. Today Maan has more than 10,000 special aluminium extruded shapes, tools, dies, cuts and profiles that are consistently used for domestic and export purposes.
In the quarter that ended September 30, 2016, Maan Aluminium’s total income from operations stood at INR104.48 crores, and EBITDA was INR1.24 crore. With the global fluctuation in commodity markets, the financials of the company have been impacted badly. Yet, the management seems to be very positive about the future outlook. Maan Aluminium Chairman and MD, Ravindra Nath Jain said, "There is much to be done this year. We have managed to achieve 50% of our installed capacity and are hoping to have a substantial increase during the year."
Indian Aluminium Company Limited and Kennametal India are two more companies which are presently making great strides in the Indian downstream aluminium product manufacturing sector. They are expected to innovate and expand further to increase their individual shares in the domestic market.
The steady growth of the global aluminium industry continues to be fuelled by the world’s top 10 largest aluminium companies and the top 10 leading aluminium producing countries in 2020. The rising demand of aluminium is mainly posed by the boom of the downstream industries such as automotive, packaging, electrical applications, construction, and consumer products etc. As the consumption of aluminium in various of industries around the world still remains high, those world’s largest aluminium manufacturers are expected to increase their revenues, while the business opportunities in the global aluminium market are projected to flourish further in the near future.
This industry fact sheet is to assist industry professionals, investors, and people in general that are interested in gaining insights into the global aluminium industry including:
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Due to its advantages of light weight and resistance to corrosion, aluminium is one of the world’s most important and widely used non-ferrous metal materials in various of industrial, commercial, and domestic applications. Thus, the production and consumption of aluminium around the world also reflects the economy performance.
According to the latest data from International Aluminium Institute, the global primary aluminium production amounted 63.7 million metric tonnes in 2019, slightly reduced from 64.3 million metric tonnes in 2018. Another recent market report from Allied Market Research also shows that the global aluminium market size was valued at $147.2 billion in 2018, and is expected to reach $189.8 billion by 2026, registering a strong CAGR of 3.2% during the forecast period.
The growth of the global aluminium market is mainly driven by the rapid development of downstream industries including transportation, construction, electrical engineering, packaging and consumer goods sectors etc. Meanwhile, technological advancements in aluminium manufacturing as well as aluminium recycling also play an important role in propelling the growth of the global aluminium market in the near future.
Geographically, Asia-Pacific, led by China and India, is the largest aluminium markets in terms of production and consumption, followed by followed by Europe and North America. Asia-Pacific’s dominant position in the global aluminium industry mainly attributed to its massive urbanization, increasing income, and rapid industrial development in the region.
Source: USGS
China remains on the No.1 spot on the chart of the world’s top 10 largest aluminium producing countries in 2020. China’s production of aluminium has surged from around 16 million metric tonnes in 2010 to a whopping 36 million metric tonnes in 2019, mainly driven by its booming downstream sectors, particularly the automotive industry and construction industry. In recent years, the Chinese government has been targeting a capacity reduction of up to 30% of the country’s full aluminium output capacity since 2017 as part of nation’s “supply-side reform” to tackle chronic overproduction and environment pollution. Despite the significantly cut on its aluminium production capacity, China is still the world’s largest aluminium producer in 2020, accounting for over 55.6% of the world’s total aluminium production.
Other world’s top 10 largest aluminium producing countries in 2020 include India, Russia, Canada, UAE, Australia, Bahrain, Norway, the U.S., and Iceland. Together, these top 10 largest aluminium producers account for over 85.6% of the world’s total aluminium production volume every year, and their leading position in the global market is expected to continue in the coming years.
Aluminum Corporation of China (Chalco) is the world’s largest alumina producer and largest aluminium company by production volume, with operations in bauxite and coal mining, alumina refining and primary aluminium smelting. Headquartered in Beijing, China, the company is also involved in producing and selling aluminium alloy products, carbon products, and other electrolytic aluminium products. Chalco also has business operations in other segments such as energy, trading, corporate and others.
China Hongqiao Group Limited is a leading Chinese aluminium producer based in Shangdong. The Group is mainly engaged in the production and sales of molten aluminium alloy, aluminium alloy ingots, aluminium alloy casting-rolling products and aluminium busbars. Today, it is one of the top 10 largest aluminium companies in the world.
Rusal is a leading Russian aluminium producer based in Moscow. The company is engaged in the production and sale of primary aluminium and other related products. The company is involved in mining and refining of bauxite into alumina. The company is currently one of the world’s largest aluminium companies by production, and it has 10 aluminium smelters, of which nine are in Russia and one in Sweden.
Xinfa Group is another world’s largest aluminium manufacturer based in Guangdong, China. The Company mainly produces and processes electrolytic aluminium and other related aluminium products. Xingfa Aluminium is one of the oldest aluminium extrusion producers in Chinese mainland and has now become a large-scale enterprise specializing in the production of construction and industrial aluminium profiles.
Rio Tinto’s aluminium division is a subsidiary of the world’s leading mining company Rio Tinto, based in Montreal. Rio Tinto operates through several mining and metal manufacturing businesses, including iron ore, aluminium, copper and diamonds, energy and minerals, and other operations. The company has 24 production sites across the globe. Products of the company include sheet ingot, extrusion billet, forging stock, and others.
Alcoa is one of the world’s leaders in the production of Bauxite, Alumina and Aluminium products, with corporate headquarters in Pittsburgh, Pennsylvania. Alcoa conducts business across 10 countries and has facilities located in Australia, Guinea, Suriname, Texas, Sao Luis, Brazil, and Spain. Alcoa has the largest bauxite mining operations in the world, a leading alumina refining system, as well as a global network of aluminium smelting plants.
Emirates Global Aluminium is the world’s leading aluminium producer based in the UAE. The company produces high-quality aluminium products in three main categories including primary aluminium, bauxite, and water. Its product portfolio comprises of high-purity and foundry re-melt products, rolling products, and billets for extrusion and forging.
Headquartered in Norway, Hydro is one of the world’s leading company in areas of Bauxite & Alumina, Primary Metal, Rolled Products, Extruded Solutions, and Energy. Hydro is engaged within all market segments for aluminium, from production of the primary metal to recycling and repurposing it. Today, Hydro is a fully integrated aluminium company with 35000 employees with operations in 40 countries.
East Hope Group Co. Ltd is one of the largest investment companies in China. The Company invests in electricity, aluminium, non-ferrous metals, bio-chemicals, and other industries. It owns and operates several largest aluminium smelters in China and abroad, making it one of the largest aluminium companies in the world.
China Power Investment Corporation, known as CPI, is one of largest state-owned electricity producers and investment companies in China. Headquartered in Beijing, China, CPI has huge capacities in electricity, coal production, aluminium smelting, alumina refinery, and bauxite production. It is now one of the world’s top 10 aluminium producers.
The growing demand and usage for recycled aluminium have become one of the major trends in the global aluminium market. Aluminium is also well-known for being a widely recycled metal, with over 75% of all produced aluminium still in circulation and being reused around the world. Meanwhile, the production process of secondary aluminium is more energy-efficient than the primary production process which further increases its significance in end-user industries. Growing demand and increasing use of recycled aluminium products are expected to create more lucrative opportunities in the global market for the near future.
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