Make in India, auto industry to push aluminium production in India
Aluminium production in India is expected to see a significant rise due to growing demand for the metal triggered by “Make in India” as well as revival of the country’s automobile industry. Experts say that the demand for the metal will increase significantly, especially in infrastructure and automobile sectors. In the recent past, several aluminium manufacturers have rolled out their plans to expand the production capacity to meet the future demand. NALCO, a public sector unit (PSU) and one of the largest aluminium producers, has announced an investment of Rs 5,540 crore to set up a 1 million tonnes alumina refinery at Damanjodi town of Koraput district in Odisha. “With a view to boost the ancillary and downstream industries, NALCO has also committed to supply 50,000 MT of aluminium metal to Angul Aluminium Park which has been formed as a joint venture between NALCO and Industrial Development Corporation of Odisha. The company is in an advance stage of setting up of 100 MW wind power plant at a suitable location with an estimated investment of Rs 660 crore,” NALCO said in a press statement last week. Similarly, other producers like Hindalco and Vedanta have also been working towards enhancing their production capacity. According to reports, Hindalco has spent up to $5.5 billion since 2009 to revamp its capacity. According to estimates, around $1 trillion is expected to be invested between 2012 and 2017 for infrastructure development in India. And this will increase the domestic aluminium consumption. Other sectors that have the potential to push aluminium consumption include automobile and food packaging. Multinational auto majors like Ford, Honda, Volkswagen, Hyundai and Nissan have recorded growth in their vehicle exports from India. These companies have also planned to increase production from India-based facilities. During the last financial year, the Indian automobile industry produced 23.3 million vehicles, registering a growth of 8.68% as compared to the previous year, a data released by the Society of Indian Automobile Manufacturers (SIAM) said. India’s vehicle exports also grew by nearly 15% year on year. Despite facing a tough time due to increasing imports of Chinese metal, Indian aluminium producers hope better days ahead with the rising domestic consumption.
June 09, 2015 | 9:47 pm IST.