1. 1

2. CONTENTS
• An Intro into Aluminum .
• Source and obtaining process
• Global consumers (by share and purchasing ratio)
• Major companies
• MARKET SHARE
• TURNOVER (PRODUCTION / SALES)
• Global Indian Companies.
• MARKET SHARE
• TURNOVER
• TOP PROFITABILITY
• LAST FIVE YEARS ACUISITION / MERGERS.
• Export – Import / Supply = Demand
• Future of Aluminum in India.
2

3. ALUMINUM – AN INTRO 45
44.9
43.98
44 43.33
• Third most abundant element 43 42.45
on earth. It has atomic mass of 42 41.53 Production
40.96 (In Million
13 and is currently traded at 41 Tonnes)
the value of US$2365 / Metric Consumptio
Ton. 40 n (In Million
• Global output at 44.8 million 39 Tonnes)
metric tonnes with an 38
estimated $112.8 billion in 2010 2011 2012
revenue in 2012.
• Analysts predicted an annual ALUMINIM DISTIBUTION IN VARIOUS SECTORS
growth rate of 7 to 14% in the 7%
global industry demand up to EUROPE 10%
15%
35%
2011, 10%
26%
• 12% increase in construction USA 12%
23%
33%
expenditure in 2007. 17%
10%
22% Others
• Minimum of plus 16 million JAPAN 10%
18%
35%
Packaging
annual growth in urban 10%
21%
Engineering
population during the next CHINA 13%
22%
29%
8 years fuelled by Aluminum. Transport
13%
29%
RUSSIA
• Construction
22%
Aluminum alloys are the critical 10%
28%
backbone of three global 15%
18%
INDIA 31%
industries – 11%
27%
Transport, Engineering and 3
construction. 0% 10% 20% 30% 40%

4. Source and obtaining process
4

5. Source and Obtaining Processes
•Aluminum is sourced at
bauxite ores. Source
•Third most abundant
metal on earth with
bauxite as its main ore.
•Derived through open
mining system in various
parts of the globe.
•Largest reserves of
alumina are in Guinea.
•Production usually
distributed in three steps:
- Mining – Electrolysis
Separating – Hall-Hérault.
•Biggest aluminum
producing mines are in
Australia. 5

6. Process
•Electricity plays a big role in Aluminum production.
Mentioned below are three steps in
•Average electricity costs fluctuates at $0.015 per KWH.
Alumina Manufacturing process: - •Transportation also forms an intrinsic and expansive part of the process.
•Bayer process : - •Average transportation cost US$33.36 per Ton.
is the first step through which aluminum is •Global mining wage stands at $87.56 / ton.
crushed and mixed with sodium hydroxide.
It is then further subjected to high
temperature and pressure to separate
heavier elements.
The Electrolysis Step: -
aluminum oxide is placed in an electrolytic
cell, an electrically charged carbon rob is
introduced to pull the oxygen atoms away
from the aluminum. The result is carbon
monoxide, carbon dioxide and pure
aluminum, which sinks to the bottom in a
powder form.
•Hall-Hérault Process: -
alumina is dissolved into a mixture of molten
cryolite, and then electrolyzed to end up
with pure aluminum. For the Hall-
Hérault process to function, an electric
current of low voltage but from 200,000 to
500,000 amperes must pass continuously
through each cell. On average it takes about
15.7 kWh of electricity to produce 1 kg of
aluminum
6

7. Process & Output
•Meting point of aluminum at 660.32 Celsius.
•Boiling point at 2519 Celsius.
•An aluminum smelter consists of a large number of
pots, steel containers lined with carbon, in which the
electrolysis takes place; smelting is run as a batch
process, with the aluminum metal deposited at the
bottom of the pots and periodically siphoned off.
Power must be constantly available, since the pots 18
17.99
17.78
have to be repaired at significant cost if the liquid 16.13
metal solidifies. 16
•A typical smelter contains anywhere from 300 to 14
720 pots, each of which produces about a ton of 2010 (Primary
12
aluminum a day. Aluminum
10 Production In
•Besides labor, Electricity constitutes a lions share (in Million Tonnes)
some countries up to 44%)of the production cost in 8
2011 (Primary
aluminum as it is required in all three stages. Aluminum
6 4.96
•The global primary production stood at 44.9 million
4.68
4.31
4.25 4.02
3.96 3.8
4.4 Production In
4 3.3 3.48
3.34 million tonnes)
tones. 2.53
2.5 2.3 2.27
2.3
2.7
2.3
2.18
2.01 1.8 1.88
1.74
2012 (Primary
• The global consumption was slightly less at 43.33 2 1.4
Aluminum
million tones. 0 Production In
million Tonnes)
•Due to its non corrosive nature it is used in 90% of
the manufacturing around globe.
7

8. Global Consumers
TRANSPORT
OTHER CONSTRUCTION
ALUMINUM
PACKAGING ENGINEERING
8

9. Major Global Consumer Base
• Five major global Aluminum consumption Industries: - Aluminum Consumption in Developed
–
–
Transportation
Engineering Economies
– Construction
– Packaging
– Others (consumer goods )
• Transportation:-
– Includes aviation, automobile and shipping sectors. TRANSPORT
25%
– Composite aluminum or aluminum based alloys are imperative in making CONSTRUCTION
airplanes lighter and stronger. 42% CONSUMER GOODS
– Aluminum consumption in automobile industry increased to 9.8 MT (million
tonnes) in 2009 as compared to 3.7 MT in 1991. 4%
ELECTRICAL GOODS
– In newer cars, aluminum induction comprises up to 28% of the total car parts MACHINERY
4%
further reducing the weight of the car on an average by 194K.G globally.
– Introduction of Aluminum in automobile also reduces the emissions from the car 8%
PACKAGING
(on an average it increases the fuel efficiency by 700 liters over the lifetime of 4% OTHERS
the car and cuts down the lifetime emission of the car by 8 tonnes). 13%
– two thirds to three quarters of a passenger plane’s dry weight, and from one
twentieth to half of a rocket’s dry weight accounts for the share of aluminum in
airborne craft
– aircrafts of all types and dimensions are constructed mainly of the ‘winged Aluminum Consumption in Developing
metal’. It accounts for about 80% of the weight of unloaded air vehicle.
For example, the famous Boeing 747 contains 75 tonnes of aluminum. Economies
– The advantages of aluminum alloys (2219 etc.) also include their high
performance under cryogen temperatures in contact with liquid
oxygen, hydrogen, and helium. The so-called cryogen reinforcement happens in
4%
these alloys, i.e. the strength and flexibility increase parallel to the decreasing 4%
temperature. 6% 19% TRANSPORT
– Aluminum is used in high-speed railway cars and modern subway cars — it is CONSTRUCTION
light and resistant to heavy vibration but consumes little power. For these
reasons, for railway manufacturers, aluminum is certainly a material of the CONSUMER GOODS
18%
future. Aside from passenger railway cars, freight cars have been made from ELECTRICAL GOODS
aluminum for a long time, with the first car being manufactured in 1931. In the
1960s, aluminum was used in the manufacturing of box freight cars with MACHINERY
a capacity of about 100 tonnes. It took about 7 tonnes of aluminum to make
each car, 10 tonnes less than for the steel version. 37% PACKAGING
15%
OTHERS
9

10. Major Global Consumer Base
ALUMINUM CONUMPTION IN TRANSPORTATION SECTOR BY COUNTRY
35%
• Aluminum alloys used in shipbuilding 35%
33%
corrode 100 times slower than steel.
During the first year of operation, steel
corrodes at a speed of 120 30%
mm/year, while aluminum – at a speed 27%
of 1 mm/year 26%
• Aluminum vessels do not require such 25%
extensive care as steel vessels, which
has an impact on the cost of their INDIA
maintenance. 20% RUSSIA
• Aluminum alloy 5083 is an aluminum CHINA
alloy suitable for cryogenic JAPAN
applications down to design 15%
13% USA
temperatures of −165 °C EUROPE
(−265 °F), since alloys of this type do 10%
not show the ductile-brittle transition 10%
phenomenon. This alloy is also
common for the marine applications
such as body materials for 5%
ships, underwater vehicles etc.
0%
INDIA RUSSIA CHINA JAPAN USA EUROPE 10

11. CONSTRUCTION'S SHARE OF INDIVIDUAL COUNTRY'S
ALUMINUM CONSUMPTION
Construction
Alumina & Steel alloys are used in making 29%
30% 28%
structural steel beams for high rises, dams and
nuclear plants. Its proximity to non-corrosion 26%
add qualitative strengths to steel alloys.
High Purity Alumina is the most cost- 25%
effective and widely used material in the
family of engineering ceramics.
Excellent dielectric properties from DC to 20% 18% INDIA
GHz frequencies Resists strong acid and alkali 17%
RUSSIA
attack at elevated temperatures .
CHINA
Aluminum's unmatched recyclability is user JAPAN
friendly and gives architects a key 15%
USA
sustainability design tool. 11%
JAPAN
Aluminum's high strength-to-weight ratio
makes it possible to design light structures 10%
with exceptional stability.
The metal‘s inherent strength allows
aluminum window and curtain wall frames to
5%
be very narrow, maximizing solar gains for
given outer dimensions.
0%
INDIA RUSSIA CHINA JAPAN USA JAPAN 11

12. ENGINEERING’S SHARE OF INDIVIDUAL COUNTRY'S
ENGINEEERING ALUMINUM CONSUMPTION
Aluminum, a superb conductor of
electricity has seen replacing copper in many
electrical applications. Moreover it is non-
35%
magnetic and non combustible, properties 31%
highly essential in advanced industries such
as electronics or in offshore structures. 30%
Since it is non corrosive and light its alloys
are used in off shore rigs and drilling stations. 24%
Aluminum alloys are used with steel and 25% 22%
INDIA
Titanium for use in primary heavy industries .
RUSSIA
Aluminum and its alloys can be easily 20% CHINA
shaped by any of the main industrial
JAPAN
metalworking processes by combining
USA
properties which also ensures 15% 12% JAPAN
rolling, extrusion, forging and casting
10% 10%
In this day and age there is approximately
66.7 MT of aluminum being used in 10%
engineering based applications
(wiring, machines, corrosive spray).
5%
0%
INDIA RUSSIA CHINA JAPAN USA JAPAN 12

13. PACKAGING PACKAGING’S SHARE OF INDIVIDUAL COUNTRY'S
ALUMINUM CONSUMPTION
Aluminum has the best barrier options to
keep food and drinks fresh and safe and to
avoid loss
29%
Studies have documented that the 30%
aluminum cans are the most recycled
beverage container in the world and most
aluminum foil applications are fully 25% 23%
recyclable.
The aluminum beverage can is one of the
most sustainable packaging solutions 20% INDIA
available, because it not only protects its RUSSIA
contents but is cost-effective and can be 15% 15% CHINA
recycled after use. Worldwide production for JAPAN
15%
all beverage cans is approximately 475 billion USA
cans per year worldwide, 52 billion per year 10% 10% JAPAN
in Europe.
10%
Aluminum due to its inertness helps to
reduce the impact of used packaging. It is
light and minimizes packaging volumes
within cheaper limits 5%
0%
13
INDIA RUSSIA CHINA JAPAN USA JAPAN

14. MAJOR CORPORATIONS
50
TOTAL PRIMARY ALUMINUM PRODUCTION IN THOUSAND TONNES
41.27
38.29
40 36.69
UNITED RUSAL
31.27 RIO TINTO
ALCOA
30 ALUMINUM CORPORATION OF CHINA
NORSK HYDRO ASA
DUBAI ALUMINUM CO
20 17.05
CHINA POWER INVESTMENT CO
13.86 13.81
12.49 BHP BILLITON LTD
10.16
8.81 SHANDONG XINFA ALUMINUM
10 ALUMINUM BAHRAIN BSC
0 UNITED RUSAL RIO TINTO ALCOA ALUMINUM NORSK HYDRO DUBAI ALUMINUM CHINA POWER BHP BILLITON LTD SHANDONG XINFA ALUMINUM
CORPORATION OF ASA CO INVESTMENT CO ALUMINUM BAHRAIN BSC
CHINA
9.19%
UNITED RUSAL
8.53% RIO TINTO
ALCOA
8.17% ALUMINUM CORPORATION OF CHINA
50.11% NORSK HYDRO ASA
6.96%
DUBAI ALUMINUM CO
CHINA POWER INVESTMENT CO
3.80%
BHP BILLITON LTD
3.09% SHANDONG XINFA ALUMINUM
3.08%
2.78% ALUMINUM BAHRAIN BSC
1.96%
2.26% 14
TOTAL SHARE PER CORPORATION IN GLOBAL PRODUCTION OTHERS

15. TOP 10 BASIC INFORMATION
RUSAL RIO TINTO ALCOA ALUMINUM NORSK HYDRO DUBAI CHINA POWER BHP BILLITON SHENDONG ALUMINUM
CORPORATION ASA ALUMINUM INVESTMENT LTD XINFA BAHRAIN BSC
OF CHINA COMPANY ALUMINUM
PRODUCTION 4127 3829 3669 3127 1705 1386 1381 1249 1016 881
CAPACITY
NUMBER OF 72,202 68,000 61,000 107,887 23,000 3800 N.D 109,000 60,000 2730
EMPLOYEES (CONGLOMERT (CONGLOMERA
AES OF TE)
DIFFERENT
COMPANIES
REVENUE US$ 12.2 Billion US$ 12.1 Billion US$24.91 US$2.35 Billion US$15.18 US$3.03 Billion US$2.7 Billion US$5.2 Billion US$4.2 Billion US$2.3 Billion
Billion Billion
OPERATION US$8.7 Billion US$ 6.6 Billion US$18.9 Billion US$2.21 Billion US$ 11.1 Billion N.D N.D N.D N.D US$1.7 Billion
COSTS
NET INCOME US$ 521 US$ 442 US$ 611 US$ 110.8 US$ 312 US$ 953 US$ 186 N.D N.D US$ 562
Million Million Million Million Million Million Profit Million Million
TOTAL ASSETS US$ 25.3 Billion US$ 26.24 US$ 40.01 US$ 25.23 US$ 16.2 Billion N.D US$ 41.55 US$ 102 Billion N.D US$ 3.6 Billion
Billion Billion Billion Billion
CEO Oleg Jacynthe Cote Klaus kleinfield Hong Weiping Svein Richard Abdullah Lu Qizhou Marius Zhang Gang Tim Murray
Deriparska Jaissim Kalban Kloppers
15

16. PER CAPITA CONSUMPTION OF ALUMINUM IN KILOGRAMS-2011
45
ALUMINUM IN INDIAN ECONOMY 40
38.2
35
INDIA
Indian consumption per capita stands at 30
CHINA
1.8KGs against the world (lowest In rapidly 27.6
26.2
25 BRAZIL
emerging economies). 22.3
ITALY
20
India produced 1.66million tonnes of 16.7 16.7 JAPAN
Aluminum as compared to 44.9 M.T globally. 15
U.S
India plans to achieve 5MT annual production 10 CANADA
by the end of 2015. 5
6.8
GERMANY
Exports to be doubled to 1.8 M.T 0
1.8
Coal is the primary energy source for majority INDIA CHINA BRAZIL ITALY JAPAN U.S CANADA GERMANY
of Indian smelters.
ALUMINUM CONSUMPTION IN INDIAN ECONOMY
Bauxite reserves in India are estimated to be at 35%
2300 MT. 31%
30%
Engineering which also includes electrical 27%
operations is the largest consumer of aluminum 25%
based applications. 20%
India exported almost 300,000 tonnes of 18% CONSTRUCTION
15%
aluminum in 2011. 11% 15%
TRANSPORTATION
The primary Indian Aluminum industry is 10% ENGINEERING
controlled by HINDALCO and VEDANTA 5% PACKAGING
RESOURCES in the private sector and NATIONAL OTHERS
ALUMINUM COMPANY in GOVT SECTOR. 0%
CONSTRUCTION
TRANSPORTATION
ENGINEERING
PACKAGING
OTHERS
16

17. TOTAL ALUMINUM PRODUCTION SHARE IN 2011
PRIMARY ALUMINUM
PRODUCING CORPORTAIONS IN
INDIA 26%
36%
The big three in India are
Nalco, Vedanta resources and Hindalco.
Only Vedanta and Hindalco have global
operations; whereas Nalco is government NALCO
owned and managed. VEDANTA
In the Indian theater, Vedanta is further 42%
divided into subsidiaries such as HINDALCO
Balco, Malco (have temporarily ceased
operations from Dec 2008), Sterlite. 800
745
Hindalco owns INDAL (Indian aluminum
700 679
corporation) and acquired Novelis a
global aluminum manufacturer in 2007 600 575
for US$ 6 billion.
500 513
Hindalco registered US$5.5 billion in 413 438
TOTAL ALUMINUM
revenue in 2011. Whereas Vedanta 400 PRODUCTION IN 2011-000
resources registered a net of US$14.1 TONNES
300
billion from their global operations. TOTAL ALUMINUM
National Aluminum Corporation 200 PRODUCTION CAPACITY IN
2011-000 TONNES
registered a revenue of US$1.4 billion 100
from 2011 operations.
0
NALCO
VEDANTA
HINDALCO 17

18. NALCO HINDALCO (Indalco) VEDANTA RESOURCES (Sterlite +
Vedanta aluminum + BALCO +
MALCO + Hindustan Zinc)
ANNUAL PRODUCTION 413,000 MT 513,500 MT 679,542 MT
OVERALL CAPACITY 438,000 MT 575,000 MT 745,000 MT
REVENUE US$1.4 BILLION US$ 5.5 BILLION US$1.8 BILLION
NET PROFIT 2009-2010-2011 2011-2010-2009 2011-2010-2009
US$155 MILLION-187 MILLION – US$467 MILLION – 410 MILLION – US$387 MILLION – 770 MILLION – 602
US$201 MILLION US$369 MILLION MILLION.
ACQUISITION / MERGERS Joint venture between MEC and Nalco NOVELIS FOR US$ 6 BILLION. Merged Sterlite with Sesa Goa to form
will operate a smelter in East Acquired Indalco in 2000 from Indian Sesa Sterlite. Vedanta acquired 10.4%
Kalimantan for $5.6 billion government with 74.6% stake in stake in Cairn India through Sesa
construction. equity. Sterlite for US$1.4 Billion.
It plans to hike its stake in the nuclear In July 2007, Hindalco announced it is
power joint venture with Nuclear acquiring the stake of Alcan Inc.'s in
Power Corporation of India the Utkal Alumina Project located in
(NPCIL).Nalco's current stake in the Orissa
firm is 26% and its is expected to be
49%
In 2008 Nalco started investing close
to US$8 billion in aluminum smelters
and refineries to boost its production
CEO Ansuman Das Kumar Manglam Birla Anil Aggarwal
18

19. TOP SECONDRY ALUMIUM PRODUCERS
OTHER RANGE OF TOTAL REVENUE TOTAL NO OF CEO/ MANAGING
ALUMINUM PRODUCTS PRODUCTION EMPLOYEES DIRECTOR
PRODUCERS IN CAPACITY
INDIA
Jindal Aluminum Aluminum Extrusions; US$ 121 million in 2011 82,000 MTPA. 1800 as of 2009 KR Raghunath
Aluminum Flat bar and
Extrusions Tubes, Foils
Bhoruka Extrusions, Anodizing, US$ 27 million 8581 MTPA 1156 R.K Aggarwal MD / Ajay
Transport grade aluminum, Kumar Dalmia (Chief
Aluminum Construction, foils. Financial Officer)
PG Foils Food packaging aluminum, US$36.85 million 1800 MT estimated ** N.D Pankaj P shah
insulation aluminum
Hind Aluminum all-alloy aluminum Rods, US$74.97 million 35000 MTPA 4500 estimated Lalit Kumar Daga
floors, grills, railings, EC
grade wire rods
Sacheta Metal aluminum and stainless US$ 11.7 million 2000MTPA (present) 900 estimated** Founder-Satish K. Shah
steel sheet, circles, utensils, 3000MTPA by 2014
castings, non-stick items
and other house wares.
Century aluminum products and US$ 35.5 million 15000MTPA N.D M.P Jhunjhunwala
aluminum unalloyed
Extrusions ingots, aluminum extruded
products such as bars, rods,
wires and pipes
Maan Aluminum Secondary aluminum US$21.24 million 13000MTPA N.D Mr. Bijender Kumar
producers Rathaliya
Gujarat Foils aluminum sections, US$47.65 million 7000MTPA N.D Pradeep J Saxena-Director
aluminum tubes, flat,
round and hexagonal bars,
plain angles & channels
Pennar Aluminum aluminum rolled products US$24.5 million 8000MTPA 1200 employees Nrupendra Rao
and conductors
19

20. Supply = Demand
Export : - -: Import 1800
Aluminum is directly affected by big TOTAL ALUMINUM PRODUCTION in thousand 1667
5: - GDP, population, power 1600 tonnes
generation, transport and
construction. 1456
The total aluminum output was at 1400
1.6 million tonnes.
1250
Consumption was at 1.3 million
tonnes. 1200
India exported 310,000 tonnes of
1020
aluminum in 2011. 1000
Primary exported countries included
china, South Korea, Japan and several 850
other smaller Asian nations. 800
Despite the slowdown in global 644
624
economy, Indian aluminum market
550
stayed relatively with overall national 600
production cost being 20% less due to
higher quality of bauxite and larger
400
coal deposits. However coal generated
aluminum is still expansive in
comparison to gas or hydro generated 200
aluminum.
The total imports were less than 10%
of total consumption (around 110,000 0
tonnes of primary aluminum products) 1996-1998 1998-2000 2000-2002 2002-2004 2004-2006 2006-2008 2008-2010 20
2010-2012

21. ALUMINUM PRODUCTION IN COMPARISON WITH GDP / POPULATION / POWER
GENERATION / AUTOMOBILE PRODUCTION
1400
Aluminum industry in 1359
India. 1250
1200 1210
1200
Even with global slowdown India increased 1200 1175
its production to 1.67 million tonnes.
1100 1115
Historically, the supply of aluminum has
been higher than the demand in lieu of 1050
1020
anticipation thus for 2012-13, India had close
to 30,000 tons of aluminum in reserves. 1000
All the big three Indian producers 900
(Nalco, Hindalco and Vedanta) are planning 850 850
to amping their production to 5 million 821
800 TOTAL
tonnes. 800 779
ALUMINUM
750
Increase in GDP, growth in population PRODUCTION in
699 689
directly impacts automobile thousand tonnes
demand, construction demand and 644 650 TOTAL GDP in
624
generation of more electricity which cannot 578 billions
be supported without aluminum. 600 550
There is a pressure on global auto makers 500 500
to increase fuel consumption in junction with POWER
decrease in emissions. Aluminum plays a vital GENERATION in
role in an automobile's production as it helps 400 kwh
in decreasing a cars weight.
300 POPULATION in
In India alone aluminum is used in more
240 millions
than 3000 applications thus the demand is 201
slated to stay strong. 180
200
India has high deposits of aluminum (3300
million tonnes) which at present
consumption can last up to 200 years. With
the rapid growth in infrastructure and
0
defense (aviation) aluminum will be in high
demand for next 10 years. 1996-1998 1998-2000 2000-2002 2002-2004
2004-2006 2006-2008 21

22. STRENGTHS
Availability of large and high quality
of bauxite reserves and coal deposits
for energy generation.
Lower labor costs
The Indian Aluminum production is
20% cheaper as compared to the
global production.
State of the art refineries and mining
facilities .
Indian Aluminum industry is
globalized with two major producers
(Hindalco and Vedanta) having
global presence.
THREATS WEAKNESSES
Chinese aluminum imports are one of Non-availability of large skilled
the bigger threats due to their lower labor force.
costs.
S.W.O.T
Absence or minimal recycling of
Global recession hasn’t affected Indian aluminum .
economy much but it has reduced the
export potential to several European Electricity forms a whopping 40%
countries. of the production costs
The environmental groups like any About 90% of the electricity is coal
based thus adding to the
ANALYSIS
other place, poses a major challenge
in India scenario; since Aluminum uses environmental cost. .
open cast mines, political parties in There is absolutely no tax
India take the vote banks into account relaxation by the Indian
before the profitability of a government , thus this affects in
corporation. the overall breakeven period.
OPPURTUNITIES
Emerging Asian economies (South
Korea, Vietnam, Thailand) other than
china are being tapped into as
aluminum consumer.
Ever-growing population and rising GDP
is beneficial as it increases the
propensity for demand.
Untapped rural market has a potential
for another US$3 billion.
Renewable sources of power
generation (i.e. Solar energy) can
further help reduce production costs.
(In some parts of country, there are 355
sunny days) 22

23. References
-Upon Request
-Rohan Krishan
23