Applications

Aluminum has more of a derived demand. The leading end-users of aluminum include the following sectors:

Aluminum finds applications in conductors (being a better conductor than copper), extrusions and foil wraps. It may be noted that aluminum is also relatively cheaper than copper. In the electrical sector, aluminum is used in the manufacture of rods, conductors and wires for electrical cables, and also as extrusions and foils. The main clients of these products include State Electricity Boards, Power Grid Corporation of India and National Thermal Power Corporation. The leading players in this segment are Nalco, Balco and Hindalco.

In the automobile sector, aluminum's main advantage over steel is its higher strength to weight ratio that cuts down fuel cost. Aluminum also has a higher thermal efficiency that results in better engine performance. Moreover, the increase in the use of aluminum in automobiles would decrease the overall weight of vehicles by 20-25%. In India, the utilization of aluminum in passenger car is about 20 kg on an average, which is considerably lower than 30-35 kg in other developing countries and 80-100 kg in the US. Among the vehicles manufactured in India, aluminum content is the highest in Maruti Zen. More Indian cars are expected to switch over to aluminum engines in the near future.  

In the construction industry, aluminum is increasingly becoming an effective substitute for wood. In the packaging industry, aluminum foils may take over from plastic, as they are more convenient, effective and recyclable. Various kitchen items such as foil, dishes, pots and pans are manufactured from aluminum. On the transportation front, aluminum is utilized in the manufacture of cars, trucks, boats, aircraft, and aircraft engines. Aluminum also finds applications in the manufacture of high-voltage power lines and cast alloy wheels. In the construction industry, aluminum finds applications as windows and doorframes. In fact, aluminum is increasingly being used as a substitute for wood and steel in the construction sector.

Rolled products are utilized in the production of aluminum foils and sheets. Extrusion products (bars and tubes) made from aluminum are used in buildings, transport, luggage, sprinkler sets and TV antennae. This segment is dominated by various secondary extrusion private manufacturers. The leading players in this segment are Hindalco, INDAL, Balco, Bhoruka Aluminum and Jindal Aluminum Ltd. 

Aluminum foils (less than 0.2 mm) are used in pharmaceuticals strips, cigarette packs, and tetra packs for food and confectionery products and soaps. The top players in this segment include India Foils, Hindalco, INDAL and PG Foils. Aluminum sheets are used in the production of refrigerators, washing machines, fans and air conditioners. With increasing consumerism and brand awareness, the packaging industry is having a boom time. Thus, aluminum now finds applications in the manufacture of cans, containers, collapsible tube foils, gas cylinders, cycles, mines prop and closures. Aluminum also finds applications in the manufacture of consumer durables such as electric fans, air conditioners and coolers. Aluminum is primarily utilized in the form of extruded flat products by this sector. In the beverage can segment, however, aluminum cans have not found much takers as the concept has not shown much promise in the highly price-sensitive Indian market. As a result, soft drink manufacturers have been hesitant in establishing an aluminum beverage can facility in India.

Product-wise Consumption of Aluminum