Aluminium prices to stay firm in the near term

Hindalco Industries, the largest aluminium producer in India, is aiming to be among the top 10 producers in the world in the next five to six years. D Bhattacharya, managing director, shares his views with Dilip Kumar Jha. 
 
How far has the aluminium industry succeeded in replacing other materials for industrial and common consumption? 
 
The domestic industry's focus is on replacing steel and wood in applications where this has already happened elsewhere. This replacement has been relatively slow thus far, on account of initial outlay concerns in India. But with growing disposal incomes, the conversion is bound to gain pace. 
 
Where do you see the Indian aluminium industry five years from now? 
 
Over the next five years, the Indian aluminium industry is making massive investments and aims to reach global scale. We at Hindalco, are raising our alumina capacity from 1.2 million tonne to 4.5 million tonne and aluminium capacity from 0.45 million tonne to 1.5 million tonne. 
 
Has aluminium discovered any new application? 
 
Aluminium jewellery is an exotic but low tonnage application. Among newer applications that are developing here are: Transportation - railway wagons, trucks/buses, cars, two-wheelers; high-security number plates, and alloy wheels. 
 
In case of buildings/infrastructure, aluminium composite panels, windows and structures that hold up glass, roofing sheets and road signs. 
 
What are initiatives the industry is taking to lift aluminium consumption and its recovery for recycling? 
 
India's per capita consumption last year was 1.2 kg compared with the western world's 20-kg plus. We see this as an opportunity. 
 
Hindalco has created marketing structures for kitchen foil, roofing sheets and alloy wheels, and has recently created market development cells to develop markets for our customers' products. 
 
The aluminium gallery initiative seeks to display products like windows, ladders and aluminium Furniture to help increase the penetration of these products in the domestic market. 
 
In the last three years, Indian aluminium demand has grown by 69 per cent. This growth is faster than China's. 
 
Aluminium is an endlessly recyclable metal. The scrap collection process in India is very efficient and virtually every tonne of aluminium scrap is recycled. 
 
What is the price outlook? 
 
Worldwide, the aluminium industry has been growing at about 4 per cent CAGR and is expected to continue to do so for the next few years. India's growth should continue to be in double digits. 
 
Prices have been firm in the last year and are expected to remain so in the near term, albeit at a slightly lower level. However, prediction of prices is always fraught with uncertainty. 
 
What are Hindalco's future plans? 
 
Hindalco has always been the leader in the domestic aluminium industry and plans to be among the top 10 producers in the world in the next 6 years.