Focus on Downstream Aluminium in India

  • Articles
  • Jul 19,24
The sector has proactively adopted strategic initiatives to boost its capabilities and economic impact.
Focus on Downstream Aluminium in India

“The automotive sector relies on auxiliary industries for tools, machinery, and components, sourced from both organised and unorganised sectors. With global attention shifting to electric vehicles (EVs), aluminium's lightweight and durable properties are crucial for EV technology and charging infrastructure development, underscoring its growing importance in the downstream aluminium segment”, says M. Sathesh Kumar, Senior GM – Operations, Jindal Aluminium.

The downstream aluminium industry in India is a vital and dynamic sector, significantly contributing to the nation's industrial growth. This segment specialises in transforming raw aluminium into value-added products, serving a wide array of industries such as automotive, construction, aerospace, power transmission, defence, transportation, and packaging. With approximately 3,500 entities, including major and midsized producers, along with numerous smaller and unorganised operators, the industry is a diverse and robust network.
The sector has proactively adopted strategic initiatives to boost its capabilities and economic impact. Extensive research and development efforts have led to the creation of innovative engineered aluminium products, addressing evolving market needs. Investment in cutting-edge technologies and digital advancements has optimised operations, streamlined supply chains, and enhanced overall efficiency. Additionally, the industry's focus on sustainable practices and the use of renewable energy highlights its commitment to environmental responsibility and long-term ecological balance. These comprehensive efforts have not only strengthened the downstream aluminium industry but continues to drive progress and play a crucial role in India's industrial landscape.

Automotive sector
The automotive sector is a key driver of India's economy, contributing 2.3% to GDP. Engineered aluminium is pivotal in this industry, used extensively for car body parts, frames, electrical systems, lighting, wheels, air conditioning components, and engine elements like radiators, pistons, and cylinder heads. It also plays a role in manufacturing magnets for tachometers and speedometers, as well as airbag systems. The sector relies on auxiliary industries for tools, machinery, and components, sourced from both organised and unorganised sectors. With global attention shifting to electric vehicles (EVs), aluminium's lightweight and durable properties are crucial for EV technology and charging infrastructure development, underscoring its growing importance in the downstream aluminium segment.

Transportation sector

The government is investing in transportation infrastructure to accommodate the growth of its major cities. Engineered aluminium is increasingly utilised across various transportation applications, including aluminium rakes, high-speed trainsets, and metro coaches. This expansion has spurred the establishment of numerous supporting industries, such as those specialising in castings, forgings, and furnishings like berths and seats. Efforts are also underway to localise the production of components such as air conditioners and couplers, aiming to ensure a steady supply of spare parts and streamline maintenance operations in the future.

Construction sector

Aluminium's prominence in India's building and construction sector is driven by rapid urbanisation. Increasing urban migration necessitates the construction of taller buildings to accommodate more people efficiently. Its malleability allows it to be shaped into numerous forms, making it highly favoured for structural purposes and various building components such as windows, doors, roofing, sliding systems, curtain walls, flashings, balustrades, sunshades, and decorative elements. When used as a primary construction material, aluminium structures weigh significantly less—about 35-65 per cent lighter—than traditional metals while offering comparable strength. Furthermore, aluminium adds a touch of sophisticated design to architectural finishes. The rising popularity of fenestration in the industry has cemented aluminium as the preferred material among builders, capturing approximately 55 per cent of India's fenestration market share, surpassing wood and steel, which holds a 25-30% share.

Electrical sector

Aluminium and its alloys play a crucial role in the electrical industry due to their strong, lightweight nature, structural integrity, high flexibility, excellent conductivity, and non-magnetic properties. They are widely used in various applications such as busbars, cables, electric motors, overhead power lines, foil windings, heating elements, electrolytic capacitors, and heat sinks. Aluminium wires and cables have significant market demand in India, although per capita usage in the country's electrical sector, at approximately 0.9 kilograms, is lower than the global average of around 1.3 kilograms. Aluminium wire rods are preferred for transmission lines because they are twice as light as steel and resistant to corrosion. Their low weight helps prevent sagging in transmission lines, ensuring reliable electricity transmission over long distances.

Packaging sector

The packaging industry in India consumes approximately 7 to 8% of the total aluminium supply, driven by increasing consumerism and the demand for enhanced product branding. Aluminium is favoured over materials like glass, tinplate, paper, and jute due to its advantageous properties. Aluminium foil, renowned for its versatility, is widely used in packaging across sectors such as food and beverages, aerospace, transportation, medical devices, and pharmaceuticals. Its high malleability allows it to be easily folded, moulded, and rolled to meet diverse packaging needs. Globally, the demand for aluminium foil is growing at a rate of approximately 4% annually and is projected to exceed 7 million tonnes by 2025.

Current trends

Recent trends in the downstream aluminium sector reflect a growing emphasis on sustainable development and the transition to a circular economy, responding to pressing environmental concerns worldwide. This shift has led to a widespread adoption of engineered aluminium across multiple industries.

Government's support for domestic manufacturing has significantly boosted the adoption of aluminium alloys in the defence and aerospace sectors. These alloys are increasingly being explored for various indigenous applications, such as structural connections and propellant tanks within defence and aerospace equipment. India's ambitious plans include achieving Rs 1.75 trillion in domestic defence manufacturing, highlighting the strategic importance of aluminium alloys in advancing national defence capabilities.

Advancements in aerospace technologies, including innovations in manufacturing techniques like 3D printing, further underscore aluminium's role in achieving lightweight and intricate designs essential for aerospace components. Additionally, the ongoing electrification of infrastructure and continuous advancements in consumer electronics are driving new applications and opportunities for aluminium, facilitating innovations in product design and customisation.

Future outlook 

The engineered aluminium industry in India is set to experience substantial growth driven by global energy shifts, rising consumer demands, and strategic advancements in emerging sectors. The transportation industry, in particular, will lead this surge as it aligns with decarbonisation goals and the growing preference for electric vehicles (EVs) over internal combustion engine (ICE) vehicles. The current limitations of EV range and the underdeveloped charging infrastructure highlight the need for lightweight materials like aluminium. Public transportation is also expected to undergo significant green transformations, further increasing the demand for aluminium.

India's potential for increased engineered aluminium consumption is immense, supported by government initiatives such as Make in India, smart cities, housing for all, rural electrification, dedicated freight corridors, and high-speed rail networks. The Niti Aayog's report, "Need for an Aluminium Policy for India," highlights the critical role of the downstream aluminium sector in driving economic growth. 

About the author:
M. Sathesh Kumar, Senior GM – Operations, Jindal Aluminium
M. Sathesh Kumar, Senior GM – Operations, Jindal Aluminium started his career in Gas Turbine Research Establishment-DRDO as a Work package Engineer. He then Joined Jindal Aluminium Ltd.-B/F as a Management Trainee, and is part of the company till the present day. He has been committed to Jindal Aluminium for 19 years and 3 months.

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