The manufacture of aluminum in India dates back to 1938 with the establishment of Aluminum Production Company's (currently known as INDAL) facility in technical and financial collaboration with Alcan, Canada. The facility had a capacity of 2,500 tons per annum (tpa) and it commenced operations with the manufacture of sheets using imported aluminum ingots. Hindalco commenced operations in 1959 with a 20,000 tpa facility at Renukoot in UP. Malco followed suit in 1965 with a capacity of 10,000 tpa. In 1975, Balco, a PSU with a similar capacity, went on stream. In 1987, National Aluminum Company (Nalco) with a capacity of 0.218 million tpa, was established in technical collaboration with Pechinery of France.

In the 1970s, the industry was highly regulated by price distribution controls and barriers to entry. The industry was controlled till 1989. Under the earlier Aluminum Control Order all domestic manufacturers were required to ensure that at least 50% of their ingot production was of electrical grade. 

The Indian aluminum industry consists of five primary aluminum producers and a host of downstream producers. The total installed capacity of primary aluminum in India is 0.65 mn tpa. The total installed capacity of rolled products, extrusions and foils is 0.5 mn tpa.

The consumption pattern of aluminum in India is highly skewed towards the electrical sector. The latter accounts for 36% of the total aluminum demand as compared to 9% worldwide. Abroad, the construction, packaging and transportation sectors account for more than 70% of the aluminum consumption whereas in India these account for only 40% of the total aluminum demand.

National Aluminum Company Ltd. (Nalco), Hindalco Industries (Hindalco), Indian Aluminum Company Ltd. (Indal), Madras Aluminum Company Ltd. (Malco) and Bharat Aluminum Company Ltd. (Balco) are five integrated aluminum producers. Hindalco and Indal also manufacture value added downstream products.