Aluminum Industries in India

8/7/2019 Aluminum Industries in India

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By: Gaurav Kanabar

HardikThakker

ShonikVig

Aluminum Industries in India


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Presentation Outline

1. Introduction

2. Analysis ofIndian PrimaryAluminum Market

3. Economics System and Resources: PESTALAnalysis & Five

ForceAnalysis4. Recycling ofAluminum

5. Conclusion


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Introduction

y Aluminum is the second largest consumed metal in the

world.

y Aluminum Industries in India is highly concentrated

industries with top 5 companies constituting the majority ofcountrys production.

y India is world's fifth largest aluminum producer with an

aluminum production competence of around 2.7 million

tonnes, accounting almost 5% of the total aluminumproduction in the world.India is also a huge reservoir of

Bauxite with a Bauxite reserve of 3 billion tones.


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Major Producing Countries


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Per Capita Consumption of Countries

Country Per Capita Consumption (In

Kg.)

India >1

US 33

Europe 25

Japan 15

Taiwan 10

China 3


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Industry Consumption

Industry Aluminum Consumption (In

%)

Power 44

Infrastructure 17

Transportation 12

Package 27


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Why aluminum?

y Strong (when mixed with small amounts of other metal)

y Durable

y Flexible

y Light weighty Recyclable


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Indian Primary Aluminum Industry

y Pure Oligopoly Market

y 3 Major Players in India

y Sells the Homogeneous products so firms are price takers

y Mostly go by the price on LME


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Reasons for Indian Aluminum Industry

being an oligopoly

y Economics of scale

y Huge Capital Investment

y Time to setup

y Control over bauxite sitesy Scarcity of Power

y Government factor

y Geographical factors


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Economic Systems and Resources

PESTAL Analysis

yPoliticaly Government supports the existing players

y Set up R&D center

yEconomicy Spending huge amount of GDP in the Infrastructure,

power.y Increase in the demand ofAluminium


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PESTAL Analysis (Cont.)

Per capita Consumption of Aluminium


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PESTAL Analysis Cont.

y Social

y SA 8000 standard

y Govt.monitor the wages to skilled and unskilled labor

y

Technologicaly Govt. has established Jawaharlal NehruAluminium research and

development center

y Govt. also supports the R&D department of Nalco,Hindalco, Balco etc.


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PESTAL Analysis Cont.

y Legal

y Environmental

y Have to follow the guideline given by MoEF (Ministry of

environment and forest) for the mining


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Five force analysis

y Threat of substitute

y Threat of new entrant

y Bargaining power of buyer

y Bargaining power of suppliery Rivalry among the existing firms


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Recycling of Aluminium

Basic source of recycling of aluminium is from

scrap and that are old , traded or new scrap.

It is done in order to conserve resource and to

avoid littering. The energy needed to recycle aluminium is little as

compared to manufacturing of primary and emits

5% of greenhouse gas.

Resources availability is more.


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How Aluminium Is Recycled ?

The consumer throws aluminium cans and foil into a

recycle bin.The aluminium is then collected and taken to a

treatment plant

It then goes to remelting process and turn into

molten aluminium

In the treatment plant the aluminum

is sorted and cleaned for reprocessing.


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The aluminum is then made into large blocks called

ingots.

The ingots are sent to mills where they are rolled

out, this

gives the aluminum greater flexibility and strength.

This is then made into aluminum products such as

cans; chocolate wrapping and ready meal packaging.This is then made into aluminium products such as

cans, chocolate wrapping and ready meal packaging


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Business Opportunities in Recycling of

Aluminium

y Trading of scrap:- purchasing of aluminium scrap and then

selling it to the required industries is a lucrative business.

y Selling of aluminium ingots B2B:- as aluminium ingots are

further processed so it can be sold business to business.

y Manufacturing of your own product.


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Customers of Aluminum Industry


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Aluminum Industries in India

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