development growth & innovation in aluminium sector & the desired govt. initiatives - prof....

Presentation by

Prof. K.S.S.Murthy, Ex-Hon.Gen.Secretary-Aluminium Association of India

ALUMINIUM – SUSTAINABLE SOLUTION TO ALL MODERN

CHALLENGES

Aluminium is a young material and, in little more than a century since its

first commercial production, it has become the world’s second most used

metal after steel. Its high strength-to-weight ratio, durability, formability,

conductivity and exceptional barrier properties make it a fundamental part

of many aspects of our daily lives.

In fact, aluminium is all around us, in essential, functional or decorative

roles. We travel in it, we eat and drink from it, make utensils and objects

from it and use equipment and appliances made of it every day.

Life without aluminium would be quite unthinkable in this day and age. The

demand for aluminium products is increasing year by year, with aluminium

the metal of choice for leading designers, architects and engineers all of

whom are looking for a material which combines functionality and cost-

effectiveness with forward looking form and design potential.


CHALLENGES

Aluminium is an extraordinarily versatile material. The range of forms it

can take and the variety of surface finishes available mean it lends itself to

a wide range of products, many of which we use every day of our lives.

POTENTIAL APPLICATION SECTORS :

Automobile & Transport

Building & Construction

Packaging

Electrical sector

Consumer durables


CHALLENGES

ALUMINIUM IN TRANSPORT Aluminium’s low density, high strength-

to-weight ratio, dimensional stability,

corrosion resistance, formability,

recyclability and crash resistance is a key

driver of lightweight, safe vehicles that

contribute significantly to fuel savings

and safety in transport.

Weight-reduction efforts in automotive design

and construction have increased significantly

in recent years. Every 10 per cent reduction in

the vehicle mass increases fuel economy by

about six to eight per cent. Aluminium is lighter

material than steel and use of aluminium alloys

for body-in-white (BIW) and other subsystem

components would result in reduction of fuel

consumption as well as CO2 emissions.


CHALLENGES

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INNOVATIONS

ALUMINIUM IN

TRANSPORT


CHALLENGES


CHALLENGES


CHALLENGES

ALUMINIUM IN BUILDING AND CONSTRUCTION

Aluminium is a product with unique properties, making it a natural partner

for the building industry. Thanks to its strength, durability, corrosion

resistance and recyclability, it has become an essential product for the

building industry and over the past 50 years its use in building applications

has shown continuous and consistent growth.

• Aluminium is an Energy Bank.

• Ideal material as it can be not only easily be fabricated but also given any kind of

finish.

• It is also highly corrosion resistant besides being light and strong;

• Also it enables efficient cooling and heating as it ensures very good locking between

frame and windows or doors. Further it can also be insulated wherever it is required.

• It is eco-friendly and fire resistant therefore competes very well with plastics and

wood.

• Saves forest wealth and maintains ecology when used as replacement for wood.

• It does not require any periodical maintenance as in the case of wood or steel and

thus the maintenance cost will be very low

INNOVATIONS

ALUMINIUM IN

BUILDING AND

CONSTRUCTION


CHALLENGES


CHALLENGES

ALUMINIUM FORMWORK TECHNOLOGY

This technology is a revolutionary construction system, which has been

quite extensively used in India. Using this unique formwork, walls, floor

slabs, columns, beams, stairs, balconies together with door and

window openings are cast in place


CHALLENGES


CHALLENGES

ALUMINIUM IN PACKAGING

The unique intrinsic

properties of aluminium

– high formability,

lightweight yet strong,

attractive metallic

appearance, providing a

total barrier to light,

gases and moisture and

recyclability - make it a

preferred packaging

material for food and

drink

Aluminium's ability to form any shape and its

protective qualities have made it the most

versatile packaging material in the world. In

addition, a key benefit is that aluminium foil,

aluminium cans and other aluminium

packaging materials can be fully recycled and

reused an infinite number of times.

The important aspect of aluminium as a

packaging material is its recyclability. In fact

recycled aluminium world over is mostly

derived from aluminium in packaging food,

vegetables, beverages etc., which has lowest

life cycle.

INNOVATIONS

ALUMINIUM

IN PACKAGING


CHALLENGES


CHALLENGES


CHALLENGES

ALUMINIUM IN ELECTRICAL AND ENGINEERING APPLICATIONS

Aluminium is also widely used in

engineering, e.g. as framing materials.

In particular, it is a key element in the

transmission of electricity.

High-voltage overhead cables have been

made of aluminium for many decades

with the combination of light weight and

excellent conductivity making it the

ideal material.

Aluminium cables are

essential in establishing

smart electric grid mixes

with numerous

decentralised renewable

energy production units


CHALLENGES

ALUMINIUM IN CONSUMER DURABLES AND ELECTRONICS

Consumer durables and electronics Aluminium

has many domestic uses, particularly in the

kitchen. Many day-to-day utensils and kitchen

appliances use aluminium, with its excellent

heat conductivity – 2.5 higher than steel -

making it an ideal component of pots, pans and

baking materials. Manufacturers are also

increasingly incorporating aluminium into a

variety of electronic equipment, including TVs,

tablets, laptops, smartphones. Aluminium

casings are light and strong, aesthetic and

practical and offering greater robustness and

reliability than plastic. Indeed, aluminium is

increasingly viewed as an indicator of premium

quality in electronic devices..

Aluminium’s dimensional

stability, light weight,

durability, conductivity

and recyclability are key

assets in making

aluminium an ideal

material in electronics

and consumer durables,

particularly in premium

products.

INNOVATIONS

ALUMINIUM

IN CONSUMER

DURABLES AND

ELECTRONICS


CHALLENGES

20 20

Aluminium in Solar panels Aluminium in Consumer durables

Aluminium in Health Care Equipments 3D printed aluminium parts

provide ideal solutions for

designers’ applications

across a range of industries

– especially automotive and

aerospace.


CHALLENGES

21 21


CHALLENGES

22 22


CHALLENGES

Indian Aluminium Industry

Plays a vital role in nation’s economy, and is a strategically important

industry due to its role in energy security, national defence, rural

electrification, electricity transmission & distribution, automobile, aviation,

construction and real estate.

One of the key Growth Sector for India and possesses a huge potential to

contribute as a Wealth Creator for nation’s economic growth.

Impact on nation’s economy

1. Very high multiplier effect on investment and turn over

2. Huge employment generation potential

3. Strategic importance as a large quantity of aluminium is used for

infrastructure sector

4. Key contribution in manufacturing through Government’s “Make

in India” programme & “Smart Cities” initiative

Aluminium-Key Industry in the scheme of economic development

- Indian Aluminium demand is growing at a CAGR of 10% and anticipated to

grow more than 4 times by 2030 with the government’s visionary initiatives

like Make in India, Smart Cities, 100% rural electrification, indigenous space

programmes, domestic defence sector revival etc. which will boost domestic

manufacturing and value addition.

- Aluminium Industry has huge potential for contribution for earnings and

savings of Forex to the tune of US $ 8-10 billion.

- Electricity Generation is included in Core Industries due to its national

importance and benefits to the society. Aluminium is one of the main

components of Electrical Transmission and Distribution (accounts for 38% of

total Aluminium consumption in India).

- Aluminium demand is rising in domestic defence sector as special advanced

Aluminium Alloys in aero structures for fighter aircraft and helicopters,

warships, submarines and components for aero frames, engines, radars,

missiles etc.


CHALLENGES

Indian Aluminium Industry- Huge Contribution to Human Capital

- Aluminium Industry employs around 7.5 Lakh people directly & in-directly and will

add another 5 lakh jobs at full capacity utilization.

- The growth of primary aluminium industry has multiplier effect on further

development of downstream industries and generating employment, thereby

increasing further the capital outlay and employment opportunities considerably.


CHALLENGES

Aluminium- A key input in Infrastructure Sector

- Aluminium plays a critical role in building blocks of India’s economy.

- Key sub sectors of Infrastructure sector are the major consumers of Aluminium

in India.

- Aluminium is primarily consumed in Electrical (38%), Transport (32%) and

Construction sector (10%), accounting for 80% of India’s aluminium

consumption in key Infrastructure Sectors.

25 25

INDIAN ALUMINIUM INDUSTRY: GOVERNMENT INITIATIVES

As part of the Make in India initiative 25 Focus sectors have been identified.

Majority of these key focus sectors are a major consumers of Aluminium in

India – automobiles, auto components, aviation, construction, defence

manufacturing, electrical machinery, electronic system design and

manufacturing, ports, railways, renewable energy, roads and highways,

space, power etc.


CHALLENGES

26 26


CHALLENGES

Automobile / Auto-components Industry:

India is currently the sixth largest producer in the world with annual

production of 25 million vehicles (FY 2016-17). By 2026 it is expected to be

the third largest automotive market by volume.

This sector has grown by 24% in last 5 years with a growing working

population and an expanding middle class being the key demand drivers.

In India an average of 40 kg aluminium is used for a car against an average

of 150 kg in the developed countries. There is a tremendous scope for

increasing aluminium use in Automobiles as light weight vehicles are more

energy efficient. Moreover use of aluminium in automobiles is directly linked

to cutting CO2 emissions.

Domestic Aluminium Industry has developed key special alloys for Auto

Industry substituting imports.

27 27


CHALLENGES

Aviation

India is one of the fastest growing aviation markets and currently the ninth

largest civil aviation market in the world and projected to be the third largest

aviation market by 2020.

The Indian aviation sector is likely to see investments totalling USD 15

bullion during 2016-2020 of which USD 10 billion is expected to come from

the private sector.

Passenger traffic is growing at 20% per annum in the last 2 years.

By 2020 the plan is to increase the number of operational airports to 250, and

Indian carriers to increase their fleet size to reach 800 aircraft.

Aviation sector will be a big demand sector for Aluminium in coming years

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CHALLENGES

Defence Sector / Domestic Defence Manufacturing

India is one of the largest importers of conventional defence equipment and

spends about 31.1% of its total defence budget. About 60% of its defence

requirements are met through imports which offers a huge opportunity for

import substitution.

The recent defence policy promotes indigenous defence manufacturing and

allows participation of private companies for defence sector.

This will promote self-reliance, indigenisation, and technology upgradation,

besides helping in building domestic capabilities and also bolster exports in

the long term.

This will boost up Aluminium demand as special advanced Aluminium Alloys

used in aero structures for fighter aircraft and helicopters, warships,

submarines and components for aero frames, engines, radars, missiles etc.

Domestic aluminium industry is very much capable to meet these requirements

for domestic defence manufacturing.

29 29


CHALLENGES

Construction:

Construction sector in India will remain buoyant due to increased demand

from real estate and infrastructure projects with the increasing population

and rising standards of living.

Investments of USD 650 Billion in urban infrastructure is estimated over next

20 years.

100 Smart Cities and 500 AMRUT Cities with investment of 2 trillion rupees

in next five years.

Construction sector accounts for 10% of total aluminium consumption in

India and is expected to increase with the rapid pace of urban development

programmes in India.

30 30


CHALLENGES

Electrical Sector / Electrical machinery: Government’s target of ‘Power for All’ and 24x7 power availability by 2022 which will

generate huge demand for power transmission & distribution infrastructure.

Incentives for capacity addition in power generation will increase the demand for

electrical equipment and machinery.

Rapid increases in sectors such as infrastructure, power, mining, oil and gas, refinery,

steel, automotive and consumer durables and industrial production will fuel further

growth.

Indian electronics market is one of the largest in the world and anticipated to reach

USD 400 billion by 2020. Major government initiatives like Digital India, Electronics

Manufacturing Clusters (AMCs) scheme, National Knowledge Network & National

Optical Fibre Network will create large market.

Electrical sector is the biggest consumer of Aluminium in India and accounts for 36% of

total consumption and this sector is expected to witness high growth for aluminium

demand.

31 31


CHALLENGES

Ports and Shipping: 90% of the country’s trade by volume and 70% by value is moved through maritime

transport. In last four years 118 projects involving investment of USD 7.73 billion

have been approved. Ports Project with investment of USD 10 billion identified for

award during the next five years. The upcoming projects of ports development, port

services and ship building & repair facilities will create high demand of aluminium

and can be catered by domestic aluminium industry.

Railways:

Indian Railways has 3rd largest railways network and 4th largest rail freight carrier in

the world.

100% Foreign Direct Investment (FDI) in the railway infrastructure segment has been

allowed recently which has opened up opportunities for participation in infrastructure

projects such as high-speed train projects, dedicated freight corridors to and from

ports, railway electrification, high-speed tracks and suburban corridors, boost

passenger amenities, modernization of stations, provision of foot-over bridges,

escalators etc.

Proposal to harness solar energy by utilising rooftop spaces of railway stations,

buildings and railway land.

Domestic Aluminium industry will play a key role by catering aluminium demand for

modernization of Indian railways.

32 32


CHALLENGES

Renewable Energy

India has the fifth largest power generation portfolio in the world and targets 175 GW

of renewable power by2022 which will include 100 GW of Solar power. With current

solar power capacity of 13 GW the sector will grow over four times in next few years.

The National Solar Mission aims to promote the development and use of solar energy

for power generation and other uses and targets 100 GW solar capacity by 2022

creating a positive environment and will offer massive opportunities across the value

chain. With such a target for capacity expansion in renewable energy sector the

demand of aluminium will grow by four times in solar power sector.

Space

In the last few years Indian Space programs have seen an accelerated growth over the

past decade. India is now among the top few counties in space exploration

programmes with recent milestones and success of Mars Mission (Mangalyaan),

Lunar Mission (Chandrayaan) and other major satellites. Foreign Direct Investment

(FDI) up to 100% is allowed in satellites-establishment and operation, subject to the

sectoral guidelines of the Department of Space/ISRO, under the government route.

The growth of space exploration programmes is also linked to demand of high quality

and special grade advanced alloys aluminium which can be supplied by the domestic

Aluminium industry.


CHALLENGES

Aluminium industry is forging ahead with rapid expansion in both Primary metal

and Downstream sectors. Further, as the country forges ahead for rapid growth in

manufacturing, as planned by our esteemed Government, under the leadership of our

dynamic Prime Minister Shri Narendra Modi Ji, Aluminium Industry will respond

equally strongly to this mission by rapidly expanding the production and

consumption of Aluminium involving very large investments at various stages of

manufacturing of aluminium and its end use products.

Global Aluminium consumption growth rate is being driven by China & India. The

consumption of primary Aluminium has risen sharply since 2002 and saw a significant

growth at a CAGR of 10%. Aluminium demand in India is anticipated to grow more

than times by 2030 with the ongoing government’s visionary initiatives like Make in

India, Smart Cities, Power for All, indigenous space programs, domestic dense sector

revival, boosting domestic manufacturing, development of infrastructure and growing

automotive & aviation sectors in India.

India can sure find a prime position in global map

Indian Aluminium Market Growth

2,425

2,200

1,877

1,515

2,7

05 2,5

88

2,8

40

FY09 FY10

FY11 FY12 FY13 FY14 FY15

1

7

Aluminium will ‘Outpace’ the GDP growth


CHALLENGES


CHALLENGES


CHALLENGES

Aluminium consumption in India is poised to grow from 3.3 million tonne (mt) in 2015-

16 to 5.3 mt in 2020-21 riding on a host of government initiatives like, Make in India,

Smart Cities, Housing for all, rural electrification, and freight corridors.

Aluminium Industry will respond equally strongly to this mission by rapidly

expanding the production and consumption of Aluminium involving very large

investments at various stages of manufacturing of aluminium and its end use

products.

• Enhanced capacities would require skilled /semi-skilled manpower

• Domestic Industry would be self sufficient to meet the growing requirements

• National Capital Goods Policy intends to boost manufacturing of capital goods to

Rs 7.50Tn by 2025.

• The Solar Cities initiative plans a min.10% reduction in conventional energy

demand. Aluminium key to the success of this project

• All administrative hurdles encountering in production of Primary Metal especially

relating to allocation of mines & coal blocks, transportation in particular rail, road,

encouragement to generate capital power and avoidance of duties on captive

power are taken care vide government initiatives to promote production of Primary

Metal.


CHALLENGES

THANK YOU

development growth & innovation in aluminium sector & the desired govt. initiatives - prof....

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