|
Supply
Presently the installed
capacity of primary aluminum is approximately 0.64mn ton. However
by the 2002-3 the installed capacity of primary aluminum could
touch 1.5mn ton.
Aluminum
capacity (FY98)
|
Company
|
Capacity(FY98)
|
|
Hindalco
|
245,000
|
|
Nalco
|
230,000
|
|
Balco
|
100,000
|
|
Malco
|
25,000
|
|
Indal
|
43,000
|
|
Total
|
643,000
|
Among the future
capacity additions, is the proposed Aditya Aluminum project having
a capacity of 0.25mn ton. However, the project has temporarily been
stalled due to environmental reasons. Indal has also proposed to
increase its capacity at Hirakud from the present 0.03mn ton to
0.06mn ton. Nalco has already started work on expanding its smelter
capacity at Angul in Orissa from 0.23mn ton to 0.345mn ton. Malco,
which presently has a smelter capacity of only 0.025mn ton, plans
to expand the same to 0.113mn ton. It is also planning to set up a
green-field venture of 0.1mn ton per annum.
Future
Capacity Additions
|
Company
|
Capacity
(ton)
|
Status
|
|
Hindalco
|
250,000
|
Proposed (New
unit)
|
|
Nalco
|
115,000
|
Under
Implementation
|
|
Sterlite
|
250,000
|
Proposed (New
Unit)
|
|
Indal
|
30,000
|
Under implementation
(Expansion)
|
|
Malco
|
83,000
100,000
|
Proposed
(Expansion)
Proposed (New
Unit)
|
The total supply of
value added products rolled products, foils and extrusions is to
the tune of 0.5mn tpa. The total capacity of rolled products is
0.3mn tpa of extrusions 0.135mn tpa and of foils 0.06mn tpa.
Integrated producers like Hindalco, Indal and Balco have
significant presence in downstream products.
Indal is the largest
producer of rolled products with a capacity of 0.09mn tpa followed
by Hindalco with a capacity of 0.080mn tpa, Balco with a capacity
of 0.04mn tpa and Pennar Aluminum with a capacity of 0.03mn
tpa.
Capacity And
Projection Of Semi-Fabricated Products (in 000 ton)
|
Item
|
Current
capacity
|
2003
|
2005
|
2008
|
|
Sheet
|
293
|
276
|
414
|
552
|
|
Foil
|
56
|
80
|
54
|
78
|
|
Extrusions
|
135
|
166
|
249
|
332
|
|
Forging
|
110
|
145
|
218
|
290
|
|
Wire Rods
|
195
|
220
|
330
|
440
|
|
Others
|
25
|
35
|
40
|
45
|
In the extruded
products segment, Hindalco is the largest producer with a capacity
of 10,400 tpa, followed by Indal with a capacity of 8,000 tpa and
Mahavir Aluminum with a capacity of 7,600 tpa.
India Foils is the
leading aluminum foil producer with a capacity of 19,000 tpa,
followed by Indal with a capacity of 6,000 tpa and Sterlite and
Hindalco both having a capacity of 5,000 tpa each.
Supply of rolled
products, extruded products and foils is slated to increase by
0.2mn tpa in the next 5 years. Majority of the increase would come
from integrated manufacturers. Most of the downstream producers are
facing financial crisis and therefore do not have funds for
expansion.
Demand-Supply gap
Demand for the metal
increased by 5% in FY98. However with the economy presently going
through a slow down aluminum demand is expected to increase by 4%
to 5% in the next two years and 8% thereafter.
Production
And Consumption Of Aluminum ( 000 ton)
|
Year
|
Production
|
Consumption
|
Import
|
Export
|
|
1990-91
|
449.3
|
443
|
30
|
35
|
|
1991-92
|
513
|
450
|
13
|
72
|
|
1992-93
|
483.4
|
383
|
12
|
113
|
|
1993-94
|
470.4
|
407
|
35
|
83
|
|
1994-95
|
480.4
|
445
|
45
|
91
|
|
1995-96
|
536.8
|
487
|
60
|
100
|
|
1996-97
|
523.7
|
506
|
90
|
100
|
|
1997-98
|
554.5
|
551
|
100
|
85
|
|
1998-99E
|
540
|
565
|
100
|
60
|
|
1999-00E
|
565
|
585
|
100
|
85
|
|
00-01E
|
650
|
630
|
100
|
90
|
Consumption of aluminum
(domestic/imports) could touch 0.685mn ton in 1999-2000 and to
around 0.8mn ton in 2002-2003. However projected installed capacity
of aluminum could touch 1 mn ton by 2003-2004, if 50% of the
aforesaid projects are implemented. This could create a situation
of over supply in the aluminum market forcing aluminum majors to
cut production and operate at a lower utilization rate.
Import-Export
India is endowed with
rich reserves of bauxite and integrated aluminum producers like
Nalco and Hindalco are one of the cheapest producers of aluminum in
the world. Hence, if favorable infrastructure facilities are
provided, the country is in a position to earn valuable foreign
exchange.
.Hindalco has stepped
up exports of aluminum and aluminum products. From Rs47mn worth of
goods exported in FY94 the company exported around Rs1.70bn worth
of goods and services. From exports of around 5.13 % of the total
sales in FY94, the company exports comprised 10.5 % of total sales
in FY98.
Nalco is the highest
exporter among the aluminum companies. During FY97, the company
exported around Rs6.24bn worth of products. Calcined alumina as
well as aluminum metal contributed to the export turnover of the
company. Nalco’s total export turnover in relation to the
total sales has been relatively high at 35 %. This has though
remained uniform over the five year period.
Indal's exports have
surged from Rs1.5bn in FY95 to Rs2.26bn in FY98. The company mainly
exports aluminum to countries in Asia, West Asia. East Africa,
Europe, as well as the SAARC countries. It is also working out a
global strategy in collaboration with Alcan Chemicals to boost
exports to the countries where the Alcan group has a significant
presence. The company exports sheets, foils, extrusions, alumina,
and special alumina. More than 65 % of special alumina produced by
Indal is exported and has been the company’s major foreign
exchange earner.
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