Aluminium industry in India

MARKET SIZE AND SEGMENTATION

4 lakh tonnes Capacity extrusion
Product Extrusion(4 lakh tonnes)
Group

Product Market

Organised Sector(280k Unorganised Sector(120k

tonnes) tonnes)

Section Profiles

Building
Electric
Automative
als

Archtectur
Industrial Engeering
al

i- Total Market Size for aluminium extrusion industry is 4 lakh tonnes which is
divided into Organized and Unorganized sector.
 ii- Organized Sector contributes 70% share against 30% share of unorganized
sector.
iii- Industry is growing at the rate of 10% P.A
iv- The building and construction contribute to almost half of the total
consumption in the organized sector.
v- Future growth will come largely from the solar industry.

UNORGANIZED SECTOR:
Various types of plastic material that are substitutes for aluminium in the unorganized
sector are PVC, UPVC, ABC, PE, PP, PC, etc.
In terms of Indian market, people are beginning to like products that have more features
and the products that are more durable as well. People these days like bigger frames to be
used as facades having sliders for their living rooms or bedrooms all over India, whether
the climate is hot, cold or humid. In the furniture segment, the furniture that is glossier,
that gets cleaned quickly and has more scratch resistance capacity is preferred.
PVC and UPVC Substitute Products in the unorganized sector:
PVC and uPVC products: PVC Wall panelling and false ceiling, wet area doors, and
uPVC windows look most promising among all our range which includes PVC doors, i.e.,
wet area door, designer door, folding door; PVC wall panelling and false ceiling; PVC
prefabricated structures; PVC fencing; uPVC windows and doors.
PVC and uPVC profiles are nowadays replacing the market of window or doors made out
of wood, aluminium or iron. This change has come because of demand of lifestyle
housing, demand for long life products. Looking this growth of the industry, the industry
is expected to grow at a rate of 15-20% year on year.

Other Competitive products that look promising in the coming years:

Wood substitute market has been ever increasing with many builders becoming aware on
ecological buildings and their interiors that are being built. Many revolutionary products
have been launched by many companies such as wood-finish steel products. These
products are a substitute for wood laminates used for interiors, uPVC colored and
combination windows, uPVC windows with iron grills, glass, products that are developed
from agricultural waste and made composite to form doors and windows with a wooden
finish, PVC membranes are very promising.
The current scenario of aluminium industry in Indian context as well as globally.
Aluminium industry plays a very important role in nation's economic growth and
progress. Investment done by Primary Producers: Rs. 1.2 Lakh crore invested taking the
total production of Primary Aluminium from 2.1 million to 4.1 million TPA by Fy17
Employment Generation More than 7.5 lakh people: directly or indirectly with current
production capacity of 2.1 mn TPA of Primary Aluminium . Employment will double with
new capacities. Growing Consumption: India's Aluminum consumption: increase from
2.7 mnTPA in 2015 to 3.2 mnTPA by 2018. While the industry is implementing these
plans, it is unfortunately facing a barrage of issues, including depressed realizations,
increased imports and difficulty in accessing critical resources like coal and bauxite due
to delayed clearances. The industry looks forward to support from the government during
this critical phase to maintain its viability and to protect its growth plans.

Relative Advantage
1. Strength:Despite their robustness, uPVC windows and doors are prone to sagging and
sashing due to their light weight and also because they are structurally not as strong as
aluminium windows. Too much heat can even result in the rupture of their frames.
2. Durability: As aluminium is a stronger material, it lasts for many more years as compared
to UPVC. As a result, the replacement cost of upvc is much higher than aluminium.
3. On site repairing: As per the manufacturing design of aluminium windows, it can be easily
repaired onsite while upvc windows need to be taken out for offsite repair
4. Easier/ low maintenance:
5. Fire resistant:
6. Scrap Value: Aluminum after use or scrap value is at least 25% of original window value
while Upvc has no scrap value.
7. Recyclable: Another advantage to picking aluminium is the fact that it is an
environmentally friendly material which can be recycled.While, the process that is required
to make UPVCs is highly toxic and this in turn leads to toxic byproducts. Problem related to
UPVC windows disposal at the end of their useful life.

Compatibility
Despite modern advances leading to several more texture and colour choices, uPVC
windows and doors still lag behind wooden or aluminium doors when it comes to picking and
choosing colours and customization options. Wooden and aluminium windows permit the
use of paint and varnish in any colour which lets you create a defined look in your house that
seamlessly blends in with your household style and decor. This makes it compatible with the
modern households which are tastefully designed and require more and long lasting
designs. Another advantage of this is that the colour lasts for ages there is no rusting,
peeling and it wont go discoloured, due to it being powder coloured aluminium (this is an
extremely durable finish for windows).

Complexity
Given the relative advantages of aluminium frames over uPVC frames, the benefits are
easily understandable by the end customer. But the challenge arises when the decision
maker is ill-informed and thereby starts getting influenced by fabricators and architects.
These influencers push for one particular type of window frame - be it wooden or aluminium
or uPVC depending upon the margins they are receiving. Hence, we can say that the
advantages of Aluminium frame itself are not difficult to understand but the customers are
widely uneducated about the same.

Divisibility
The customers we are targeting are the ones in construction business and real estate
industry. In this particular industry, customers look for products that have lifetime-value and
have aesthetic appeal at the same time. Now, the aesthetic appeal can be easily
demonstrated via various mediums like sample flats, home decor shops etc. But the
durability aspect of frames is difficult to convey simply through trials because the benefits will
not become visible in a few days or even a few months.

Communicability
Besides the choice of material, proper maintenance and cleaning, there is another important
factor in durability and service life of windows. It has also to be considered that the service
life of windows is not only a quantifiable technical property, but there is also an aesthetic and
fashion input to it; life of windows therefore, depends upon economical, functional, social and
physical performance.
Currently, there is a little difficulty in communicating the benefits of aluminium as UPVC
manufacturers are more inclined towards marketing and there is a good perception about
UPVC products in the market. But,aluminium can easily market itself better by educating
stakeholders about its relative advantage.

Solutions to improve revenue from aluminium

1. Aluminium Trade fairs
There are numerous Aluminium trade fairs and expos that happen around the year. Some of
these focus only on Aluminium Extrusion products, while others on all Aluminium products.
Our primary goal is to convert the influencers - fabricators and architects. Therefore, we
should carefully select those trade fairs and expos which are attended by our primary
targets.
For example: Aluminium India, the international trade fair and conference which is to be held
in first week of November, 2017
The target audience for Aluminium India would be fabricators, architects, foundries, plant
heads/supervisors, defense establishments, metal traders, metallurgists, consultants, end-
users from a broad cross-section of industry sectors like automotive, construction, electrical,
marine, aviation, telecommunication, packaging, etc.
http://www.southasiatradeshows.com/india/aluminium-india684

In order to convert our primary targets, we must be able to showcase how MAAN Aluminium
is superior to its competitors as well as substitutes. This can be done by demonstrating the
relative advantages of Aluminium over uPVC. For example: If we want to showcase the
strength of Aluminium, we can go for various tests like fatigue stress test, hardness test etc
depending upon which characteristic property we want to highlight.

2. Government eco-friendly projects

These days the word Green has become synonymous to those activities which cause
minimum negative environmental impact. There are many companies who are trying to
adapt eco-friendly measures in order to meet the needs of the present generation without
compromising the needs of the future generation.

The government of India launched a Smart city mission under which Indore was short listed
as one of the cities out of 100 cities. The government plans to focus on Energy & Waste
management by incorporating eco-friendly measures to revamp the City.

Maan Aluminium could probably participate in the tenders offered by the government as it
will start many projects where there main focus would be on infrastructures and where
Aluminium will have edge over other substitutes like uPVC in the following ways:-
 Aluminiums production is comparatively less harmful than the production of uPVC as
the latter contains a vinyl chloride monomer (VCM) whose exposure was linked to a
rare form of liver cancer, angiosarcoma.

Vinyl Chlorides releases dioxin which are carcinogenic if they are not incinerated
properly.