Indian Aluminium Powder Market Size Analysis Report - Market Share, Forecast Trends and Outlook (2024-2032)

Indian Aluminium Powder Market Overview

The Indian aluminium powder market is being driven by rapid urbanisation and increasing commercial mining.  The market is being driven by the growing commercial mining and rapid urbanisation in the country. The growing industrialisation and increased construction activities in the region is further supporting the growth of the Indian aluminium powder market. 

In India, aluminium powder is used in multiple industries for various purposes, including metallurgy, chemicals, paints and pigments, explosives, and construction, among others. The product’s wide adoption across its various end-use industries is one of the main factors driving the demand in the market. As aluminium shows high corrosion resistance, it is effective in increasing the lifespan of the product, thus, resulting in increased demand. Due to the beneficial properties, easy availability, and affordability of aluminium in India, the industry is witnessing significant growth.  

In addition, the use of the product for the manufacture of coating paints has increased, which has further boosted its demand throughout the automotive industry. In addition, it is resistant to corrosion and can be quickly recycled due to which it is a highly durable commodity with a longer lifetime than other metals, which is also positively influencing the market.

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Indian Aluminium Powder Market Trends

Rising Demand for Aluminium from the Additive Manufacturing Sector

Aluminium powder exhibits superior strength and light-weight properties which makes it viable in the 3D printing sector.  Several end-use sectors such as aerospace, automotive, and healthcare, among others, are relying on automotive powder for the production of complex parts.  Several major companies in India such as Wipro 3D are further exploring the use of metal powders such as aluminium powder for the 3D printing process, which can further aid the aluminium powder demand. 

Mahindra & Mahindra announced on August 2023 that it aims to explore the use of more 3D-printed aluminium components in its EVs to reduce their weight and improve overall efficiency, which is expected to fuel the demand for aluminium powder. Additionally, the National Strategy on Additive Manufacturing was launched on 24th February 2022 to revolutionise the additive and manufacturing sector of India, which is further expected to boost the production of 3D printing materials, and consequently fuel the Indian aluminium powder market growth. 

Growing Emphasis on Green Manufacturing and Recycling

With the rising adoption of sustainability initiatives across the world, aluminium producers and manufacturers in India are also adopting green practices such as the usage of recycled aluminium powder as well as energy-efficient production of aluminium powder. Around 40% of the aluminium produced in India in 2023 was from recycled materials, which reduced the environmental footprint. Recycled aluminium uses 95% less energy and produces 97% fewer greenhouse gases compared to the standard form of aluminium, which makes it one of the most attractive metals for recycling. It further offers infinite recyclability as it is 100% recyclable, further driving the demand of Indian aluminium powder market. 

Major companies such as NALCO and Hindalco announced that they aimed to improve their aluminium recycling capacity by 15-20% by 2025, as a part of its broader sustainability goal. Such initiatives showcase a positive trend towards green aluminium powder in the market.

Industry News

August 2024

The Cabinet Committee on Economic Affairs announced the approval of 8 new rail line projects across 7 states with an estimated cost of 24,657 crore. These new rail lines cover the route that will be used for the transportation of goods such as agricultural products, fertiliser, iron ore, and aluminium powder, among others. 

November 2022

Global Aluminium Pvt. Ltd., a supplier of premium quality aluminium products, announced that it aimed to increase the production capacity by 50,000 tonnes by the end of 2023 as well as deploy advanced production capabilities by 2025.

Opportunities in Indian Aluminium Powder Market

Aluminium powder is finding rising growth in the aerospace and defence sectors. Efforts for the indigenisation of defence production are gaining an upward trend under the Make in India initiative, which is creating a flourishing landscape for aluminium powder, which can be used in fuel and explosives, and aiding the Indian aluminium powder demand growth. For instance, India's Defense Research and Development Organisation (DRDO) stated in August 2023 that it aims to use Indigenous materials in the production of defence materials.

The defence budget of the country was INR 5.94 trillion in the fiscal year 2023-24 and a significant amount of it was allocated for the development of advanced materials such as aluminium powders in defence equipment and goods. Moreover, in February 2023, HAL (Hindustan Aeronautics Limited) announced that it aims to expand its manufacturing facility for aircraft components with the use of aluminium-based alloys, which can be often developed from aluminium powder. 

Indian Aluminium Powder Market Restraints

The high energy consumption in the production of aluminium powder is hindering the market growth. The electricity prices in the country witnessed a surge for the industrial sector in 2022, which made the production of aluminium expensive. Several aluminium providers in the country were affected by this. For instance, NALCO (National Aluminium Company Limited) stated that the high energy costs reduced its profit margins by 18% year-on-year.

As per the Indian aluminium powder industry analysis, the Indian government has imposed strict environmental regulations to control the emission of greenhouse gases which can also affect some market players. For instance, Vedanta Aluminum had to temporarily shut down its operations at one of its smelting units due to environmental violations as per the Supreme Court of India. This led to a drop of 2.5% in its total production output.

Market Dynamics

Aluminium powder is finding growing applications in the renewable energy sector through the development of solar panels, wind turbines, and battery storage systems, among others. Its favourable corrosion-resistant and lightweight properties make it appropriate for usage in these systems and aid the renewable energy goal of the country. India has set an ambitious target of 450 GW of renewable energy capacity by 2030 which is expected to fuel the demand for aluminium which can be used in the development of solar panel frames and have a positive impact on the Indian aluminium powder demand forecast.

In March 2023, Tata Power announced that it had received an investment worth USD 486 million from a consortium by BlackRock Real Assets. For instance, Tata Power Renewable Energy Limited (TPREL) signed a Power Purchase Agreement (PPA) with Tata Motors for the development of a 12 MWp solar project at its Pune facility. Under this project, it aims to generate around 17.5 million units of electricity per year, which highlights the role of aluminium powder in reducing production costs.

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Indian Aluminium Powder Industry Segmentation

Aluminium is a metallic product with a soft finish and is lightweight, ductile, and non-magnetic. Aluminium powder is a silver-white, lightweight, and highly inflammable powder that is produced by grinding the aluminium metal sheet in the presence of a food-grade fatty acid. It can also be obtained by exposing molten aluminium to a compressed gas jet. This powder is available in different forms, including aluminium flake, atomised aluminium, and aluminium pigment powder.

On the basis of raw material, the industry is divided into:

• Aluminium Ingots
• Aluminium Scrap

On the basis of furnace type, the industry is divided into:

• Oil-Fired
• Gas-Fired
• Electric Furnace

The report also covers the regional markets in India, which are North India, South India, East India, and West India.

Indian Aluminium Powder Market Share

By Raw Material Analysis

Currently, aluminium ingots are the most preferred material among manufacturers to produce aluminium powder as they offer high purity, typically above 99.5 %, of aluminium powder. As per the industry reports, India produced around 3.4 million tonnes of primary aluminium in 2022, and a large volume of it was converted into ingots for further use, which further contributed to Indian aluminium powder market value.

Moreover, NALCO announced in July 2023 that it aims to expand its aluminium ingot production through a significant investment of Rs 30,000 crores in the overall expansion and diversification of its capacity and operation in the next 6 to 7 years.

By Furnace Type Analysis

Electric furnaces are expected to account for a significant Indian aluminium powder market share as a large number of aluminium powder production facilities rely on electric furnaces. These furnaces consume less energy compared to oil-fired and gas-fired furnaces and can be used in conjecture with renewable energy sources, making them more cost and energy-effective.

Market players such as Vedanta Aluminum aims to reduce its greenhouse gas emissions by 20% by the year 2025, which can create lucrative opportunities for electric furnace technology. Furthermore, the Ministry of Power launched financial incentives in 2023 which can support the transition from oil or gas-fired furnaces to electric furnaces for end-use sectors such as aluminium powders.

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Indian Aluminium Powder Market Regional Analysis

South Indian Aluminium Powder Market Trends

Region-wise, South India represents the largest market for the product, holding most of the industry share. This region is home to major market players such as Hindalco Industries and NALCO which have prominent aluminium manufacturing facilities in the region, including aluminium ingots and aluminium powder.

As per the Indian aluminium powder market dynamics and trends, Southern states account for around 30% of the country’s GDP, which can boost the production opportunities for aluminium powder. The region, specifically Bangalore, has established itself as a hub for the aerospace and defence sectors, which is further boosting the demand for aluminium powder in the production of aircraft components. 

East Indian Aluminium Powder Market Growth

The Eastern region is also expected to witness substantial growth as it consists of states such as Odisha, Jharkhand, and Chhattisgarh which are known for their substantial aluminium production. The burgeoning presence of bauxite reserves and major aluminium production facilities in these states is boosting the regional Indian aluminium powder industry revenue. 

NALCO, a company based in Odisha, also announced its plans to increase its aluminium smelting capacity and aluminium ingot production, which is the primary raw material used in aluminium powder production. This capacity expansion will eventually enhance the regional output in the coming years, establishing the region as a significant segment of the market. 

Innovative Indian Aluminium Powder Startups

Startups in the market are focused on enhancing developmental activities, specifically for enhancing the production technology of aluminium powder. Air-atomisation technology is being readily adopted by several companies as it improves the efficiency of yielding aluminium powder. Several startups in the market are also adopting 3D printing technology for the usage of aluminium powders in the aerospace, automotive, and healthcare sectors. Some companies are further investing in energy-efficient production techniques to reduce emissions during the production process, which can also contribute to the growth of the Indian aluminium powder industry.

Pioneer Powder (India) Pvt. Ltd.

The company mainly focuses on the production of aluminium powder for rising applications in explosives, pyrotechnics, and defence sectors. The company is known for delivering high-quality aluminium products to meet the rising demand from chemical manufacturing and metallurgical sectors as well as expanding its product line in the 3D printing area which can further aid Indian aluminium powder market opportunities.

Gravita India Ltd. (Aluminum Division)

This company is known for its recycling services and has recently entered the aluminium powder sector through the production of aluminium powder from recycled aluminium materials. It mainly offers its products for eco-friendly solutions such as specialised coatings, lightweight automotive, and energy storage, among others.

Competitive Landscape

The report gives a detailed analysis of the following key players in the market, covering their competitive landscape, capacity, and latest developments like mergers and acquisitions, investments, capacity expansion and plant turnarounds. Key players in the industry are increasingly investing in research and development activities, which is expected to aid the industry's growth over the forecast period. The players in the Indian aluminium powder market are further focusing their efforts on the sustainable development of aluminium powders from recycled metal scraps and industrial waste.

Key Industry Players

The Metal Powder Company Limited

MEPCO company was established in India and has established itself as a major provider of non-ferrous metal powders such as aluminium, zinc, and copper, among others. It offers its product portfolio for various end-use sectors such as automotive, aerospace, and chemicals.

MMP Industries Ltd.

Based in Nagpur, India, it is one of the leading suppliers in the Indian aluminium powder market. The company offers a wide range of aluminium products such as aluminium powder, foils, and pastes for industrial sectors such as aerospace, explosives, and pyrotechnics, among others.

The Arasan Aluminium Industries (P) Ltd.

It is one of the renowned leaders in the aluminium sector, offering a wide range of aluminium-based products for both domestic and international markets. The company is a major supplier to the construction, coatings, and pyrotechnics sectors, among others.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis.

Recent Developments

January 2022

Jindal Aluminium Limited, a major provider of aluminium-extruded products, announced the acquisition of Indo Alusys Industries Limited (IAIL) for an amount of Rs 100 crore. The company began production at the Bhiwadi facility, which offers it strategic access to the northern market and can increase Indian aluminium powder market revenue.

April 2021

The Commerce Ministry of India announced that it made import registration compulsory for 46 copper and 43 aluminium products under its non-ferrous metal import monitoring system. The importer can apply for the registration not earlier than the 60th day before the expected arrival of the import consignment.