Emerging Trends & Applications Reshaping Downstream Aluminium Sector in India
A qualified Chartered Accountant, RK possesses over three decades of cross-industry experience across diverse finance and general management roles. Silicon india recently got a chance to interact with RK Jain, Senior VP - Corporate Affairs, Jindal Aluminium, wherein he shared his thoughtful insights on the current downstream aluminium sector in India, its contribution towards the country’s growth and many other aspects. Read on to know more about these interesting topics
Share your thoughts on the current downstream aluminium industry in India
The primary and downstream sectors of the aluminium industry are currently facing distinct economic conditions and challenges. Although the downstream sector is dependent on the upstream for the supply of raw materials, both the industries operate independently. The downstream sector which includes value-addition, contends with intense competition due to low-profit margins, proliferation of small extrusion units in the informal sector, and the influx of aluminium products from neighbouring countries. While the approach to these sectors varies globally, the downstream industry in India is still in its nascence and is yet to receive due recognition. Recognizing and supporting the Indian downstream aluminium sector has the potential to contribute significantly to the ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives. This support, aligned with appro-priate government policies, could also create substantial employment opportuni-ties within the country’s aluminium industry.
Throw some light on a few latest trends and use cases that are shaping the downstream aluminium sector.
Of late, we are witnessing an increased emphasis on sustainable development and shift towards circular economy by the downstream aluminium sector, which is a significant need of the century. As a result, there has been a rapid increase in the use cases of engineered aluminium across various industries. Driven by the global push towards sustainable transportation, properties such as being lightweight and corrosion-resistant properties make engineered aluminium an ideal choice for enhancing the efficiency and performance of electric vehicles.
Furthermore, the construction industry is witnessing a surge in demand for aluminium due to its versatility, durability and recoverability as green building norms gain momentum. Additionally, advancements in aerospace, advanced manufacturing technologies like 3D printing, electrification & infrastructure, and consumer electronics position aluminium at the forefront of innovations and contribute to the future of industrial development. These technologies allow for complex and lightweight designs, providing new opportunities for product development and customization.
How is the aluminium industry moving towards being more sustainable and eco-friendly?
We are witnessing an increased environmental consciousness and the introduction of stringent regulatory policies pertaining to sustainability in the aluminium industry in recent times. Additionally, a noteworthy change that is the resultant of this transition has been the aluminium industry adopting more circular economy principles. Engineered aluminium, known for its recoverability without compromising its inherent properties, is becoming a cornerstone in eco-friendly material choices. Additionally, the industry is making significant investments in technologies that help reduce carbon emissions by focusing on low-carbon and carbon-neutral production processes. While adopting green energy sources, particularly in the production processes, is gaining momentum, we have been using renewable energy in our production process for decades now and were the first company to set up both wind power plants (1997) and solar power plants in Karnataka (2013). Such concerted efforts towards sustainability align with global environmental goals and position the downstream aluminium sector as a responsible contributor to a greener future.
Enlighten us about India’s current positioning in terms of aluminium consumption, as well the potential future opportunities.
Globally, the auto and transport sectors lead in aluminium consumption at 23 percent, followed by construction at 22 percent, packaging at 13 percent, electrical at 12 percent, and machinery & equipment at 8.5 percent each. Aluminium usage in the consumer durables industry stands at 4.5 percent, with the remaining four percent spread across various other segments. While India’s per capita aluminium consumption of around 2.5 kg is comparatively low compared to the global average of 11 kg, it is steadily increasing. The power sector dominates aluminium consumption in India at 48 percent,as it is mainly utilized in the extensive electric distribution system. This is followed by the transportation & automotive sector at 15 percent, building & construction at 13 percent, and consumer durables contribute seven percent.
The future outlook for aluminium is promising, especially with the introduction of initiatives like ‘Make in India’, ‘Atmanirbhar Bharat’, Smart Cities’, and other government-backed projects. These initiatives create significant opportunities for substantial growth in aluminium consumption. Engineered aluminium is uniquely positioned to address the needs and challenges of the 21st century. Additionally, the downstream aluminium industry has developed capacities and capabilities to produce engineered aluminium products that meet precise industry requirements. These products also align well with the principles of a circular economy, making them a sustainable choice for various applications.
Share your thoughts on the current downstream aluminium industry in India
The primary and downstream sectors of the aluminium industry are currently facing distinct economic conditions and challenges. Although the downstream sector is dependent on the upstream for the supply of raw materials, both the industries operate independently. The downstream sector which includes value-addition, contends with intense competition due to low-profit margins, proliferation of small extrusion units in the informal sector, and the influx of aluminium products from neighbouring countries. While the approach to these sectors varies globally, the downstream industry in India is still in its nascence and is yet to receive due recognition. Recognizing and supporting the Indian downstream aluminium sector has the potential to contribute significantly to the ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives. This support, aligned with appro-priate government policies, could also create substantial employment opportuni-ties within the country’s aluminium industry.
Throw some light on a few latest trends and use cases that are shaping the downstream aluminium sector.
Of late, we are witnessing an increased emphasis on sustainable development and shift towards circular economy by the downstream aluminium sector, which is a significant need of the century. As a result, there has been a rapid increase in the use cases of engineered aluminium across various industries. Driven by the global push towards sustainable transportation, properties such as being lightweight and corrosion-resistant properties make engineered aluminium an ideal choice for enhancing the efficiency and performance of electric vehicles.
Furthermore, the construction industry is witnessing a surge in demand for aluminium due to its versatility, durability and recoverability as green building norms gain momentum. Additionally, advancements in aerospace, advanced manufacturing technologies like 3D printing, electrification & infrastructure, and consumer electronics position aluminium at the forefront of innovations and contribute to the future of industrial development. These technologies allow for complex and lightweight designs, providing new opportunities for product development and customization.
Engineered aluminium, known for its recoverability without compromising its inherent properties, is becoming a cornerstone in eco-friendly material choices
How is the aluminium industry moving towards being more sustainable and eco-friendly?
We are witnessing an increased environmental consciousness and the introduction of stringent regulatory policies pertaining to sustainability in the aluminium industry in recent times. Additionally, a noteworthy change that is the resultant of this transition has been the aluminium industry adopting more circular economy principles. Engineered aluminium, known for its recoverability without compromising its inherent properties, is becoming a cornerstone in eco-friendly material choices. Additionally, the industry is making significant investments in technologies that help reduce carbon emissions by focusing on low-carbon and carbon-neutral production processes. While adopting green energy sources, particularly in the production processes, is gaining momentum, we have been using renewable energy in our production process for decades now and were the first company to set up both wind power plants (1997) and solar power plants in Karnataka (2013). Such concerted efforts towards sustainability align with global environmental goals and position the downstream aluminium sector as a responsible contributor to a greener future.
Enlighten us about India’s current positioning in terms of aluminium consumption, as well the potential future opportunities.
Globally, the auto and transport sectors lead in aluminium consumption at 23 percent, followed by construction at 22 percent, packaging at 13 percent, electrical at 12 percent, and machinery & equipment at 8.5 percent each. Aluminium usage in the consumer durables industry stands at 4.5 percent, with the remaining four percent spread across various other segments. While India’s per capita aluminium consumption of around 2.5 kg is comparatively low compared to the global average of 11 kg, it is steadily increasing. The power sector dominates aluminium consumption in India at 48 percent,as it is mainly utilized in the extensive electric distribution system. This is followed by the transportation & automotive sector at 15 percent, building & construction at 13 percent, and consumer durables contribute seven percent.
The future outlook for aluminium is promising, especially with the introduction of initiatives like ‘Make in India’, ‘Atmanirbhar Bharat’, Smart Cities’, and other government-backed projects. These initiatives create significant opportunities for substantial growth in aluminium consumption. Engineered aluminium is uniquely positioned to address the needs and challenges of the 21st century. Additionally, the downstream aluminium industry has developed capacities and capabilities to produce engineered aluminium products that meet precise industry requirements. These products also align well with the principles of a circular economy, making them a sustainable choice for various applications.
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