The Indian aluminum industry consists of primary and secondary or downstream aluminum manufacturers. The Indian aluminum industry was deregulated in 1989. While Nalco, Hindalco, INDAL, Malco and Balco are integrated manufacturers of aluminum; Hindalco and INDAL are also involved in the production of value added downstream products.

National Aluminum is the leading Indian exporter of alumina to different international markets. Downstream capacity in the aluminum industry has increased in recent times due to sufficient duty differential between aluminum ingots or primary metal and value added downstream products. Aluminum giants Nalco and Hindalco have the distinction of being the most economical manufacturers of aluminum worldwide.

Integrated producers of aluminum such as Hindalco, Balco, Malco and INDAL have a significant presence in the downstream aluminum segment. Primary metal manufacturers (also known as integrated manufacturers as they own large reserves of bauxite) account for about 89 % of the metal production in India, with re-rollers or scrap recycling facilities accounting for the rest.

Value added aluminum product manufacturers acquire either primary metal from the integrated aluminum manufacturers or import it. Integrated manufacturers who are involved in the manufacture of value added products are in a better competitive position vis-à-vis stand-alone producers. The regular supply of primary aluminum metal, the price volatility in primary aluminum procurement and the depreciation of the rupee (in the case of imported metal) are the main factors that influence the viability of downstream producers.

Of the 3000 odd uses of aluminum worldwide, India utilizes only a tenth of them. Primary manufacturers are likely to go for forward integration with better revenue prospects in the fabricated products segment. Aluminum is a capital and energy intensive industry, and the domestic sector faces stiff competition from imports (in the fabricated products segment).

The main processes used in the production of aluminum include the Hell-Herault Process, the Alcoa Smelting Process, Toth Process, Direct Reduction Process, Carbo-Thermic Process and Sub Halide Process.

Extruded products come in the form of bars, tubes and other long products. Hindalco, Balco, Malco and INDAL together represent one-fifth of the total installed capacity. Foils, which are aluminum sheets of 0.2mm thickness, find applications in the packaging industry since aluminum offers high resistance to moisture. Other applications of aluminum foils include pharmaceutical strips, interlining of tetra packaging, processed foods, cable manufacturers, cigarette manufacturers and household food.

India Foils and INDAL account for 65% of the foil market. India Foils (capacity 19,000 tpa) is the largest manufacturer of aluminum foils. Other leading producers include Hindalco (capacity 5,000 tpa), INDAL (capacity 6,000 tpa) and Sterlite (5,000 tpa). Annapurna Foils, which is managed by INDAL, is the leading producer of aluminum foils in India. In the case of aluminum sheets, Hindalco and INDAL together represent 58% of the entire industry output.