A brief overview of the Indian Aluminium Extrusions Industry...

1. Indian Extrusion Industry
The Opportunities &
Challenges

2. Contents:
w Extrusions Market in India
w Opportunities in India
w Towards Solutions

3. The Indian Aluminium Extrusions Industry
w The demand for aluminium extrusions in India was about
300,000 tonnes in 2010
w Demand in India is still growing strong inspite of economic
fluctuations
w The building & construction industry is the major consumer
of aluminium extrusions in India
w Future growth will come largely from the solar industry and
the industrial sector
w Usage in the automotive industry is still in a nascent stage

4. Market size: 300,000 tonnes (2010)
Industrial
28%
Transportation Building &
12% Construction
60%

5. India’s per capita consumption of extrusions is
amongst the lowest in the world
9.0
8.0 7.7
7.0
6.1
Per capita consumption (kg)
6.0 5.6
5.0 4.8
4.0
4.0
3.0
2.4
2.0 1.6
1.0
0.2
-
Germany Japan China France USA UK Poland India
* Data for 2010

6. A highly fragmented industry
w The total capacity for aluminium extrusions in India is about 400,000
tonnes
w The industry is highly fragmented with over 60 manufacturers of
aluminium extrusions
Capacity No. of players
> 25,000 tonnes 2
Between 10,000 & 25,000 tonnes 5
Between 5,000 & 10,000 tonnes 12
< 5,000 tonnes 43
Total 62

7. India – Growing Market Opportunities
Market segments Key Observations :
w Currently the 5th largest passenger car producer
& 8th largest commercial vehicle producer in the
Automotive world
w The Indian auto industry has grown at a CAGR of
16% in the last 5 years
w India is now a export base for many global auto
Telecom majors
w Aluminium usage is still at a nascent stage
Mass Transportation

8. Aluminium Extrusions Usage in Automotives
w Current usage of aluminium extrusions is
restricted to engine mounts, radiator frames, Automotive Production
brake components, seat frames & a few other
3,500
minor applications
3,000 2,987
w As opposed to the average aluminium extrusions
usage of 11.5 kg in Europe in passenger cars, 2,500
the usage in India is as low as 2 to 3 kg per car 2,357
000 units
2,000
w Even cars manufactured by European/American 1,778 1,839
manufacturers like Volkswagen, Renault, General 1,500 1,545
Motors & Ford have very low usage of aluminium
extrusions 1,000
w Supply to this industry would require tough 500 753
520 549 577
tolerance adherence, extremely well 417
-
documented production procedures
2006 2007 2008 2009 2010
Passenger Cars Commercial Vehicles

9. Automotive

10. India – Growing Market Opportunities
Market segments Key Observations :
Automotive
w Production of equipment for the telecom
industry was valued at $11.87 billion in 2010
w Industry is currently facing a lull in growth but is
Telecom
expected to come back on track next year
w Production revenue is set to increase to $23.5
billion by 2014
Mass Transportation

11. Telecom
w Development and sales of enclosures and cooling solution.
w Extruded aluminum superior as a heat dissipater.
w Outperforms cast aluminum with thermal conductivity that is twice as
effective and copper by lower weight.
w Cooling fins can be made very narrow, closely spaced and with high
degree of precision.

12. India – Growing Market Opportunities
Market segments Key Observations :
Automotive
Telecom
w Metros are being launched in many cities across
India
Mass Transportation w Bombardier & Alstom have set up operations
w Friction Stir Welding technology is not available at
present

13. India – Growing Market Opportunities
Market segments Key Observations :
w Building industry is the largest consumer of extrusions
Construction is now moving heavily into Tier II and Tier
Building Industry III cities in addition to Tier I cities
w Current demand for extrusions from this sector is
largely for simple door & window sections
w The usage of building systems and Unitized systems are
yet to gain large scale acceptance in the market
Solar Power

14. Challenges in the Indian extrusions market
w Aluminium is still used only for simple applications at present in India
w Complex applications, a small market by itself, are catered to through
imports
w Technical know how is significantly lesser than in Europe & USA
w Customers prefer to buy “off the shelf” products; This will have to
change with more industrial applications coming in
w Price is a key driving factor and India is amongst the most price sensitive
markets in the world.
w Quality extrusions will cost more , but pays in the long run. Evaluate the
whole life costs while deciding where to buy from.

15. Challenges in the Indian extrusions market
w Building & Construction sector is becoming more quality conscious
Architects / Big builders are directly interacting with Extruders for
supply of profiles
w Some of changes happening are:
Wider sections
More complex shapes
Tighter tolerances
w Focus towards buying ‘Solutions’ rather than ‘off the shelf profiles’ is
increasing

16. India – Growing Market Opportunities
Market segments Key Observations :
Building Industry
w With a large population & high solar insolation , is an
ideal location for solar energy production
w In 2009, India unveiled a plan to produce 20GW of solar
power by 2020; Current production from Solar Power is
Solar Power less than 1 GW
w Aluminium is the metal of choice for the Solar Panels
being manufactured; About 40-50 tonnes of extrusions
are used for mounting systems per MW of installation

17. Mitigating Climate Change
w Reducing the carbon footprint will influence all businesses
w Government of India has announced 25% reduction in the emission
intensity by 2020
w Measures to be taken:
Mandatory fuel efficiency for vehicles by 2011
Model energy conservation codes for buildings & recommend
states to make this mandatory
Clean technology in power generation
Increase the forest cover

18. Toward Green Solutions
w At one third the weight of steel and extensive design options,
Aluminium is the ideal solution for the building & construction
industry
w A variety of options for Green solutions in buildings:
Photo Voltaic integrated systems
Unitized solutions
Double skin curtain walling
Thermal breaks
Sun light louvers
w Increased popularity of using aluminium formwork and shutters as it
improves construction speed and quality significantly

19. Focus on energy efficiency
w Buildings account for over 40 per cent of the global
consumption of electricity
w Energy-efficient solutions for buildings are increasingly important
This window profile section has a low U-value thanks to a
Photovoltaic integrated solutions for active buildings skeleton of fibreglass-reinforced polyamide that
effectively interrupts the thermal path and reduces
convection and radiation between the inner and outer
aluminium profiles

20. Building Integerated Photo Voltaic System (BIPV)
Solar Integrated curtain wall, National Telecom HQ of Sudan

21. Towards Solutions
w With growing demands in India, extruders need to find new ways to
differentiate themselves from others
w Extruders know the possibilities & limitations of aluminium extrusions and
this knowledge needs to be passed on to customers to help design better
products
w With more demand expected from the Industrial segments, extruders need
to get involved with customers in the design stage itself
w Extruders in Europe & USA have moved further down the value added
chain and supply fabricated products to customers
w This trend is also slowly being adapted by few Indian extruders

26. RESERVE YOUR SPACE NOW IN
12,13,14,15 December 2013
* Data Courtesy : SAPA Profiles India Pvt. Ltd.
MMRDA Exhibition Centre,
Bandra-Kurla Complex
Mumbai, INDIA
www.zakaluminiumextrusions.com
Contact : Ahad | +91 98846 88888 |ahad@zakgroup.com