Global Marketing Strategies for Indian Aluminium Products – A Study


  • Aligarh Muslim University, India


Aluminium is a relatively young metal of 120 years compared to steel, copper and other metals. In this short span, it has found extensive usage in every walk of human life; from pots and pans to airplanes, rockets and to space-age equipments. The metal is next only to iron in tonnage and usage. The ongoing globalisation has touched the Indian aluminium industry:

• Indian aluminium Industry (IAI) is one of the lowest cost producers of alumina (approx US $ 118 per ton) and aluminium (approx US $ 1020 per ton) in the world.

• IAI is replicating successful business model of world’s leading aluminium companies. It represents a fine blend of revenue from alumina, primary aluminium and fabricated aluminium products.

• Access to high quality gibbsite bauxite reserves.

• Cheapest energy (US 3 Cent per Kilo Watt Hour) from their captive thermal power plants.

• Most of plants use state of art technology due to up gradation.

• Primary aluminium prices and long term alumina prices are cyclical, leading to fluctuations in earnings.

• Given its cost competitiveness and its high financial flexibility, where gearing (even after expansions) is expected to be low, IAI can look forward to increase its presence in aluminium business, where its global presence is small as compared to pure smelters such as Dubai Aluminium Co. (Dubai) and Aluminium Bahrain.

• Globally, aluminium leaders have reduced their business risk with fine blend of alumina, primary aluminium and fabricated aluminium products revenue streams. Also, these leaders have a presence in the global market.

• Healthy global average annual growth of 3.5 percent and Indian growth of 8 percent. This coupled with excess production allows for significant surpluses available for export.

• There is robust demand growth from China and South East Asian countries.

Subject Discipline

Business Management

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