A Knowledge report “Indian aluminium industry: Geared for growth” by CRISIL for the Aluminium Industry was launched at the inaugural session of the World Non-Ferrous Conference 2016, organized by Mtlexs on October 7-8, 2016, in presence of dignitaries including Mr. SatishPai, Managing Director – Hindalco, Engr. Salam Sharif, BIR Chairman of Amb. Comm, BMR and President & Chairman of Sharif Metals, Mr. DevangRawal, Executive Vice President & Head – Corporate Finance at Aditya Birla Finance Ltd, Mr. Justin Roux – Senior Vice President – Luvata Group, Mr. SuneelMardia, CEO – Mtlexs and Mrs. Saloni V. Kothari, COO – Mtlexs.
 

The report mentions that the CRISIL Research estimates India’s aluminium demand to log a healthy 9-11% compound annual growth rate (CAGR) between 2015-16 and 2020-21, compared with 8% between 2010- 11 and 2015-16. Demand is expected to grow 10-11% in 2016-17 after an estimated 11.6% in 2015-16, driven by higher power sector demand.
 

Details on aluminium consumption in the country, in the past as well as future expectations, are also mentioned in the report.
 

As per the report, the transmission and distribution industry is exected to drive the primary aluminium demand in the country. The report mentions, “Going forward, growth in power conductors will be led by state discoms and investment in infrastructure. Investments under centrally sponsored schemes – Rajiv Gandhi GrameenVidyutikaranYojana, Restructured Accelerated Reforms and Development Programme, DeenDayalUpadhyay Gram JyotiYojana, and UDAY, etc are expected to boost investments in transmission and distribution over the long term.”
 

Further, the report mentions that the demand for secondary aluminium industry will ride on automotivesector. The report states, “Overall aluminium demand from the automotive sector increased at 7% in the past five years, driven by greater adoption of the metal, especially secondary aluminium (primarily for engine & transmission components and peripherals)”.
 

“Going forward, we expect demand to increase at 10% CAGR, driven by high growth in the automotive sector. Improved consumer sentiment amid expectations of faster economic growth, coupled with uptick in commercial activity, is estimated to drive automobile demand through 2020-21”, the report further mentions.