Aluminium sector poised for 8-9% growth: ICRA
Powered by growth in automobile, real estate and power sectors, the country's aluminium sector is poised for increased consumption with a projected growth of 8-9 per cent, analyst firm ICRA says.
By PTI |
NEW DELHI: Powered by growth in automobile, real estate and power sectors, the country's aluminium sector is poised for increased consumption with a projected growth of 8-9 per cent, analyst firm ICRA says.
The current level of 0.8 kg per capita per annum consumption of the metal is fairly less as compared to other developing nations. However, the outlook for the metal still remains impressive with growing economy and emerging aluminum dependent sectors, an ICRA research said.
The domestic aluminum market, driven by electrical, automobiles and building segments, grew by 9.5 per cent in fiscal 2004-05, it said
The electrical sector has been the largest consumer of aluminium, accounting for 31 per cent of the total consumption in the domestic market. Demand from the sector is expected to increase further at 10 per cent per annum.
The last three years have been the most exciting for aluminum production with a compunded annual growth rate (CAGR) of 12.1 per cent.
The country's primary aluminium production capacity stand at around 0.9 million tonne, and the industry is operating at high capacity utilsations. The increase in both domestic as well as the international market has encouraged producers to raise their capacity.
Major public and private players have embarked upon capacity expansion projects to fill the demand supply gap expected to arise sooner or later.
Major capacity expansion plans would see state-run Balco increasing its capacity from the current level of 0.1 mtpa to 0.345 mtpa by next month, Nalco from 0.345 mtpa to 0.46 mtpa and Aditya Birla owned Hindalco from 0.345 mtpa to 0.65 mtpa.
The current level of 0.8 kg per capita per annum consumption of the metal is fairly less as compared to other developing nations. However, the outlook for the metal still remains impressive with growing economy and emerging aluminum dependent sectors, an ICRA research said.
The domestic aluminum market, driven by electrical, automobiles and building segments, grew by 9.5 per cent in fiscal 2004-05, it said
The electrical sector has been the largest consumer of aluminium, accounting for 31 per cent of the total consumption in the domestic market. Demand from the sector is expected to increase further at 10 per cent per annum.
The last three years have been the most exciting for aluminum production with a compunded annual growth rate (CAGR) of 12.1 per cent.
The country's primary aluminium production capacity stand at around 0.9 million tonne, and the industry is operating at high capacity utilsations. The increase in both domestic as well as the international market has encouraged producers to raise their capacity.
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Major public and private players have embarked upon capacity expansion projects to fill the demand supply gap expected to arise sooner or later.
Major capacity expansion plans would see state-run Balco increasing its capacity from the current level of 0.1 mtpa to 0.345 mtpa by next month, Nalco from 0.345 mtpa to 0.46 mtpa and Aditya Birla owned Hindalco from 0.345 mtpa to 0.65 mtpa.
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