By Bizodisha Bureau, Bhubaneswar, July 18, 2016 : Aluminium demand in the country is likely to go up to five million tonne (mt) by 2020 and eight mt by 2025 up from 3.2 mt at present, according to a study by Aluminium Association of India (AAI) and Crisil Research.

The country’s aluminium consumption clocked CAGR (compounded annual growth rate) of eight per cent during 2011-16, the study says asserting that the same trend is expected to prevail till 2020. Indian aluminium producers have invested Rs 1.5 lakh crore on upstream and downstream facilities.

In fact, the growth in power and automotive sectors coupled with the Narendra Modi government’s ‘Make in India’ thrust is expected to facilitate massive growth in aluminium consumption in the coming years.

The demand for power is all set to go up from 290 Gw currently to 360 Gw by 2020-21 whereas auto demand is projected at 38 million units by then, up from 25 million units by the end of FY16.

The Modi government’s push for ‘Make in India’ especially in defence sector is expected to open up a gamut of opportunities for the white metal. Aluminium is widely used in defence equipment like military aircraft, ammunition hardware and missiles in the form of sheets, forgings and extrusions.

Besides, building and construction sector will also emerge as the next growth driver as aluminium with its light weight quality finds enhanced application.

In the last one year, the primary aluminium consumption increased by 23 per cent and total aluminium consumption increased by 13 per cent. This year, the projected growth in aluminium demand is 11 per cent.

India is still far behind the developed countries where aluminium has over 3,000 applications. In the country it is limited to only 300 applications. India’s per capita aluminium consumption at 2.2 kg is far below world average of 10 kg and 25 kg in China.