indian aluminium extrusions industry - challenges & oppourtunities
TRANSCRIPT
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Indian Extrusion Industry The Opportunities &
Challenges
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w Extrusions Market in India
w Opportunities in India
w Towards Solutions
Contents:
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The Indian Aluminium Extrusions Industry
w The demand for aluminium extrusions in India was about 300,000 tonnes in 2010
w Demand in India is still growing strong inspite of economic fluctuations
w The building & construction industry is the major consumer of aluminium extrusions in India
w Future growth will come largely from the solar industry and the industrial sector
w Usage in the automotive industry is still in a nascent stage
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Building & Construction
60%
Transportation 12%
Industrial 28%
Market size: 300,000 tonnes (2010)
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India’s per capita consumption of extrusions is amongst the lowest in the world
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Germany Japan China France USA UK Poland India
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* Data for 2010
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A highly fragmented industry
w The total capacity for aluminium extrusions in India is about 400,000 tonnes
w The industry is highly fragmented with over 60 manufacturers of aluminium extrusions
Capacity No. of players
> 25,000 tonnes 2
Between 10,000 & 25,000 tonnes 5
Between 5,000 & 10,000 tonnes 12
< 5,000 tonnes 43
Total 62
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India – Growing Market Opportunities
Market segments
Automotive
Telecom
Mass Transportation
Key Observations :
w Currently the 5th largest passenger car producer & 8th largest commercial vehicle producer in the world
w The Indian auto industry has grown at a CAGR of
16% in the last 5 years
w India is now a export base for many global auto
majors
w Aluminium usage is still at a nascent stage
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Aluminium Extrusions Usage in Automotives
w Current usage of aluminium extrusions is restricted to engine mounts, radiator frames, brake components, seat frames & a few other minor applications
w As opposed to the average aluminium extrusions usage of 11.5 kg in Europe in passenger cars, the usage in India is as low as 2 to 3 kg per car
w Even cars manufactured by European/American manufacturers like Volkswagen, Renault, General Motors & Ford have very low usage of aluminium extrusions
w Supply to this industry would require tough tolerance adherence, extremely well documented production procedures
1,545 1,778 1,839
2,357
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2006 2007 2008 2009 2010
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Automotive Production
Passenger Cars Commercial Vehicles
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Automotive
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India – Growing Market Opportunities
Market segments
Automotive
Telecom
Mass Transportation
Key Observations :
w Production of equipment for the telecom
industry was valued at $11.87 billion in 2010
w Industry is currently facing a lull in growth but is
expected to come back on track next year
w Production revenue is set to increase to $23.5
billion by 2014
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Telecom
w Development and sales of enclosures and cooling solution.
w Extruded aluminum superior as a heat dissipater.
w Outperforms cast aluminum with thermal conductivity that is twice as effective and copper by lower weight.
w Cooling fins can be made very narrow, closely spaced and with high degree of precision.
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India – Growing Market Opportunities
Market segments
Automotive
Telecom
Mass Transportation
Key Observations :
w Metros are being launched in many cities across
India
w Bombardier & Alstom have set up operations
w Friction Stir Welding technology is not available at
present
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India – Growing Market Opportunities
Market segments
Building Industry
Solar Power
Key Observations :
w Building industry is the largest consumer of extrusions
Construction is now moving heavily into Tier II and Tier
III cities in addition to Tier I cities
w Current demand for extrusions from this sector is
largely for simple door & window sections
w The usage of building systems and Unitized systems are
yet to gain large scale acceptance in the market
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Challenges in the Indian extrusions market
w Aluminium is still used only for simple applications at present in India
w Complex applications, a small market by itself, are catered to through
imports
w Technical know how is significantly lesser than in Europe & USA
w Customers prefer to buy “off the shelf” products; This will have to
change with more industrial applications coming in
w Price is a key driving factor and India is amongst the most price sensitive
markets in the world.
w Quality extrusions will cost more , but pays in the long run. Evaluate the
whole life costs while deciding where to buy from.
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Challenges in the Indian extrusions market
w Building & Construction sector is becoming more quality conscious
Architects / Big builders are directly interacting with Extruders for
supply of profiles
w Some of changes happening are:
Wider sections
More complex shapes
Tighter tolerances
w Focus towards buying ‘Solutions’ rather than ‘off the shelf profiles’ is
increasing
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India – Growing Market Opportunities
Market segments
Building Industry
Solar Power
Key Observations :
w With a large population & high solar insolation , is an
ideal location for solar energy production
w In 2009, India unveiled a plan to produce 20GW of solar
power by 2020; Current production from Solar Power is
less than 1 GW
w Aluminium is the metal of choice for the Solar Panels
being manufactured; About 40-50 tonnes of extrusions
are used for mounting systems per MW of installation
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Mitigating Climate Change
w Reducing the carbon footprint will influence all businesses w Government of India has announced 25% reduction in the emission intensity by 2020 w Measures to be taken: Mandatory fuel efficiency for vehicles by 2011 Model energy conservation codes for buildings & recommend states to make this mandatory Clean technology in power generation Increase the forest cover
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Toward Green Solutions
w At one third the weight of steel and extensive design options,
Aluminium is the ideal solution for the building & construction
industry
w A variety of options for Green solutions in buildings:
Photo Voltaic integrated systems
Unitized solutions
Double skin curtain walling
Thermal breaks
Sun light louvers
w Increased popularity of using aluminium formwork and shutters as it
improves construction speed and quality significantly
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Focus on energy efficiency
w Buildings account for over 40 per cent of the global consumption of electricity
w Energy-efficient solutions for buildings are increasingly important
Photovoltaic integrated solutions for active buildings This window profile section has a low U-value thanks to a skeleton of fibreglass-reinforced polyamide that effectively interrupts the thermal path and reduces convection and radiation between the inner and outer aluminium profiles
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Building Integerated Photo Voltaic System (BIPV)
Solar Integrated curtain wall, National Telecom HQ of Sudan
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Towards Solutions
w With growing demands in India, extruders need to find new ways to
differentiate themselves from others
w Extruders know the possibilities & limitations of aluminium extrusions and
this knowledge needs to be passed on to customers to help design better
products
w With more demand expected from the Industrial segments, extruders need
to get involved with customers in the design stage itself
w Extruders in Europe & USA have moved further down the value added
chain and supply fabricated products to customers
w This trend is also slowly being adapted by few Indian extruders
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12,13,14,15 December 2013 MMRDA Exhibition Centre,
Bandra-Kurla Complex Mumbai, INDIA
www.zakaluminiumextrusions.com
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