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

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

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.

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

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

PER CAPITA CONSUMPTION (IN KGS)

7

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

8

ECONOMIC GROWTH – THE FUNDAMENTAL DRIVER FOR ALUMINIUM DEMAND

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

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

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.

ALUMINUM IN TRANSPORT SECTOR

8.4

38

Mn LakhsMn Lakhs Lakhs

1.2

5.60.6

1.1

0.5

2.3

2

9.52.2

3.3

Lakhs

Currently the11th largestproducer.Expected to bethe 7th largest by2016

2nd largest 2Wmanufacturer inthe world

Largest 3Wmanufacturerin the world

Projected to bethe 4th largesttruck producerby 2016

IR is the world’s4th largest goodscarrier with anetwork of over62800 km andruns 5500 goodstrains 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, Avalon Consulting 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.

ALUMINIUM IN CARS

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

ALUMINIUM IN TANKERS AND

SHUTTLE VEHICLES

16

16

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

India's first electric bus launched in Bangalore

Zipping past the smoke-emitting regular buses, the orange

beauty stands out.

Latest Developments

The Ford F-150 - PICK UP TRUCK

Audi A8

The Jaguar XF’s aluminum body

The Volkswagen NILS,

Single-seat electric vehicle

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.

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

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

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.

Aluminium - CO2 Emissions

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

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

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.

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.

GOVERNMENT OF INDIA

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

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.

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.

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.

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%.

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.

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

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

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

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

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

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.