Indian Extrusion Industry

The Opportunities &

Challenges

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

The Indian Aluminium Extrusions Industry

w

The demand for aluminium extrusions in India was about

300,000 tonnes in 2010

Demand in India is still growing strong inspite of economic

fluctuations

The building & construction industry is the major consumer

of aluminium extrusions in India

Future growth will come largely from the solar industry and
the industrial sector

Usage in the automotive industry is still in a nascent stage

Market size: 300,000 tonnes (2010)

Industrial
28%

Transportation
12%

Building &
Construction
60%

Indias per capita consumption of extrusions is

amongst the lowest in the world
9.0
8.0

7.7

Per capita consumption (kg)

7.0
6.1
6.0

5.6
4.8

5.0

4.0

4.0
3.0

2.4
2.0

1.6

1.0
0.2
Germany
* Data for 2010

Japan

China

France

USA

UK

Poland

India

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

Between 10,000 & 25,000 tonnes

Between 5,000 & 10,000 tonnes

12

< 5,000 tonnes

43
Total

62

India Growing Market Opportunities

Market segments

Key Observations :

Automotive

w Currently the 5th largest passenger car producer

& 8th largest commercial vehicle producer in the
world
w The Indian auto industry has grown at a CAGR of
16% in the last 5 years

Telecom

w India is now a export base for many global auto

majors
w Aluminium usage is still at a nascent stage

Mass Transportation

Aluminium Extrusions Usage in Automotives

w Current usage of aluminium extrusions is
restricted to engine mounts, radiator frames,
brake components, seat frames & a few other
minor applications

Automotive Production
3,500
3,000

w As opposed to the average aluminium extrusions

usage of 11.5 kg in Europe in passenger cars,
the usage in India is as low as 2 to 3 kg per car

w Supply to this industry would require tough

tolerance adherence, extremely well
documented production procedures

2,500
000 units

w Even cars manufactured by European/American

manufacturers like Volkswagen, Renault, General
Motors & Ford have very low usage of aluminium
extrusions

2,987
2,357

2,000
1,778
1,500

1,839

1,545

1,000
500

549

520
-

2006

2007

Passenger Cars

417

2008

577

2009

753

2010

Commercial Vehicles

Automotive

India Growing Market Opportunities

Market segments

Key Observations :

Automotive

w Production of equipment for the telecom

Telecom

Mass Transportation

industry was valued at $11.87 billion in 2010

w Industry is currently facing a lull in growth but is
expected to come back on track next year
w Production revenue is set to increase to $23.5
billion by 2014

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.

India Growing Market Opportunities

Market segments

Key Observations :

Automotive

Telecom

w Metros are being launched in many cities across

Mass Transportation

India
w Bombardier & Alstom have set up operations
w Friction Stir Welding technology is not available at
present

India Growing Market Opportunities

Key Observations :

Market segments
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

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.

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

Focus towards buying Solutions rather than off the shelf profiles is
increasing

India Growing Market Opportunities

Market segments

Key Observations :

Building Industry

w With a large population & high solar insolation , is an

Solar Power

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
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

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

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

Increased popularity of using aluminium formwork and shutters as it

improves construction speed and quality significantly

Focus on energy efficiency

w

Buildings account for over 40 per cent of the global

consumption of electricity

Energy-efficient solutions for buildings are increasingly important

Photovoltaic integrated solutions for active buildings

This window profile section has a low U-value thanks to a

skeleton of fibreglass-reinforced polyamide that
effectively interrupts the thermal path and reduces
convection and radiation between the inner and outer
aluminium profiles

Building Integerated Photo Voltaic System (BIPV)

Solar Integrated curtain wall, National Telecom HQ of Sudan

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

12,13,14,15 December 2013

MMRDA Exhibition Centre,
Bandra-Kurla Complex
Mumbai, INDIA
www.zakaluminiumextrusions.com
Contact : Ahad | +91 98846 88888 |ahad@zakgroup.com

* Data Courtesy : SAPA Profiles India Pvt. Ltd.

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