Karvy Research   Desk

Aluminum Sector

  

Future Outlook

Potential Markets

Contrary to the world demand pattern, where Electrical Equipment segment accounts for less than 8 percent, in case of India this segment is the major end-user segment where the major demand comes from. It is expected that in the coming years the demand pattern would fall in line with the international demand pattern. Therefore Auto, Packaging and Building & Construction segment could emerge as the potential growth segments for the domestic aluminum producers. Another growth opportunity arises out on account of comparatively low per capita consumption of aluminum in the country. The per capita consumption of aluminum in India is 0.5 kgs as against 26.9 kgs in USA and 30.1 kgs in Germany. Another growth opportunity lie in the fact that of the 3000 odd uses of aluminum worldwide, India utilizes only a tenth of them. Further forward integration could open up new vistas of growth opportunities.

Aluminum consumption by sector

 

India

USA

Japan

Argentina

Electrical

35.0

9.3

7.6

10.0

Consumer durable

12.0

7.5

-

14.0

Transport

18.0

20.1

31.5

14.0

Building & Construction

6.0

16.9

25.0

29.0

Industrial

6.0

6.9

3.3

5.0

Packaging

7.0

35.5

9.7

17.0

Others

16.0

3.8

22.9

11.0

 

100.0

100.0

100.0

100.0

 

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