Hindalco and Sesa Sterlite seeking new market for their growing aluminium output

By the end of this fiscal year, India’s aluminium production capacity is going to rise to about 4.36 mt, a huge leap from 1.71 mt in 2012. The local demand however is less than half that number so the big guns in the industry, like Sesa Sterlite Ltd and Hindalco Industries Ltd, who have grown exponentially, are doing extensive research and development along with marketing to explore and establish new markets.

Both Hindalco and Sesa Sterlite have teamed up with government agencies and companies to boost the weak domestic demand by finding new uses for aluminium in industries like transport, aerospace, defense and rural development.

According to company and mining ministry data, Sesa Sterlite’s current aluminium production has jumped from 745,000 tonnes as recorded two years ago to 2.6 mt. Even Hindalco has faced a similar surge form 513,500 tonnes two years ago to its current 1.3 mt capacity.

Even their future prospects point towards a greater output as both have invested heavily on expansion projects.

While Hindalco has invested around $5 billion for various new projects like Mahan Aluminium smelter in Madhya Pradesh and Utkal Alumina Refinery and Aditya Aluminium Smelter in Odisha; Vedanta, the parent company for Sesa has invested $8 billion in aluminium and alumina projects in Lanjigarh and Jharsiguda in Odisha.

Hindalco at present is working with oil public sector units, boat manufacturers, automotive firms and transport organisations to increase the use of aluminium at the same time working with government agencies to test the new projects. They are even looking to tap the increasing demand for aluminium sheets in the countryside.

Sesa is working in similar lines as they work with the Association of State Board Transport Undertakings to develop an ‘aluminium intensive’ bus. They are also working in collaboration with National Automotive Board to make automotive more light weight by replacing steel with aluminium. There are even talks with state owned BEML Ltd. to use aluminium in rail coaches.