Indian Aluminium Industry: A Perspective

M. R. Dixit and Venugopal R

IIMA Working Papers from Indian Institute of Management Ahmedabad, Research and Publication Department

Abstract: This paper looks at the various facets of the aluminium industry such as government policy, user profile, industry structure, financial and physical performance, exports and imports and firm level management issues, and draws a perspective of the industry. The key observations are as follows: Till the early seventies private entrepreneurs played a leading role in shaping the industry. The Government entered the Aluminium industry with the setting up of Bharat Aluminium Company but, it gained prominence with the setting up of National Aluminium Company (Nalco). The industry has adopted and assimilated technologies acquired form leading international players. The assimilation of technology has been sufficient to operate plants at designed efficiency levels but has not led to the accumulation of expertise which can be a source for indigenous technological development. No major indigenous technological innovations have taken place in the Aluminium industry. Among the major aluminium producing countries in the world, India ranks tenth. India’s production of approximately 500,000 tons of Aluminium represented about 3.5 % of the world production of Aluminium and half the production of China. The major constraints in taking a significant place in the world market appear to be steady and uninterrupted supply of power. In the context of liberalisation, investment in this sector by the aluminium companies themselves or agreements with the existing or new comers in the power sector could ease the situation.

Date: 1995-05-01
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Persistent link: https://EconPapers.repec.org/RePEc:iim:iimawp:wp01331

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