VINACHEM

The demand surge for aluminium, a lot stronger than for steel in recent years, falls in a global pattern. Stock broking firm Sushil Finance says, “Economies see a strong metal use growth once their per capita GDP on a purchasing power parity basis reaches $3,000.” More recently, this started happening in China when its per capita GDP on a PPP basis reached $3,195 in 2004. India crossed that magic figure last year. This and the government decision to spend $1 trillion (Rs 45 lakh crore) on infrastructure development during the 12th Plan period will vindicate Bagra’s demand forecast. Consultancy firm McKinsey & Co has pegged Indian aluminium demand grow that a more modest 9-11 per cent yearly up to 2015. The Indian per capita use being only 1.3 kg against the world average of 7.4 kg and China’s 12 kg shows major growth possibilities of the metal here, as it throws challenges to the local industry to promote new aluminium application.

ATTRACTION
Aluminium use on a large scale is recommended for its durability, light weight, easy maintenance and hygienic properties. For architects, aluminium is fast becoming the design staple for contemporary buildings for all these reasons, as also for its aesthetic appeal. It is interesting how some post-modern sculpture made of aluminium and on a mammoth scale is inspiring our architects to use the metal to give shape to their more creative designs for buildings and their immediate surroundings. “We look up to Anish Kapoor who has used layers and layers of aluminium for his seminal work, Mountain. Similarly, we have discovered a new range of possibilities of aluminium use in the works of Anselm Kiefer,” say Kolkata-based architects Sanjay Mandal and Anirban Bhaduri, who work as a team.

As aluminium has caught the fancy of local architects and builders, the construction industry will increasingly claim a bigger share of white metal use. Hindalco, which in the next few years will lift its aluminium smelting capacity three-fold to 1.8 million tonnes (mt) and alumina refining capacity four-fold to six mt annually, says the global demand drivers will be the can sheet and automotive and construction sectors. Globally, the automotive industry is the single largest user of aluminium, accounting for a quarter of the total metal consumption. The next decade is likely to see a doubling in aluminium’s application on autos.

EXPECTATIONS
As in so many other areas, India has a lot of catching up to do in automobiles. What augurs well for local aluminium demand rise is the arrival here of most leading car manufacturers and the growing number of Indians ready to pay the extra price for cars using aluminium components. We have seen how collaboration between Novelis, acquired by Hindalco in 2007, and German car maker Audi led to the development of the AS250 sheet, incorporating multi-layer aluminium technology. The product, used extensively in the redesigned Audi 8, has come to be known as ‘new aluminium’, for it offers performance benefits not to be had from conventional aluminium. Here, Nalco, in partnership with BEML, has developed prototypes of aluminium wagons and coaches, which the railways hopefully will start using at some stage.

In the meantime, Hindalco is to complete the transfer of a can body stock hotline plant from Rogerstone in Britain to Hirakud in Orissa, in a “modernised, upgraded and expanded” form by this year-end. The provocation obviously is the impending growth in demand for can stock, used in the making of beverage cans.

In fact, well ahead of the relocation of the Rogerstone mill, Rexam of the UK and Can-Pack of Poland have started making cans in their state-of-the-art factories in Maharashtra. Once Hindalco starts making can stock at Hirakud, self-reliance in a high value-added flat product will be achieved, with surplus for export. The two foreign can makers have built enough capacity to market cans within the country and also export.

The Hirakud can stock unit is a statement of successful integration of the businesses of Hindalco and Novelis in technology, fixed assets and brand equity. There will certainly be many more opportune moments for Hindalco to introduce here other Novelis flat-rolled product technologies.