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India Metals & Minerals Industry Report - 2015

  • ID: 3529070
  • Report
  • January 2016
  • Region: India
  • 35 Pages
  • Emerging Markets Direct
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The Outlook for Metals and Mineral Sector Looks Stable in the Near-Term Because of a Demand Uptick and Decline in Inflation
This report profiles India’s metals and minerals industry, discussing market trends and outlook through 2015 and beyond. The report also highlights leading players in the sector including Hindalco Industries Ltd, Hindustan Zinc Ltd and Hindustan Copper Ltd.

The Indian metals and minerals sector is one of the important constituents of economic growth in India. The country has been a major global player in minerals and metals in terms of manufacturing, consumption and trading in the last few years. India is ranked amongst the world’s largest producers of aluminum and zinc. The sector comprises mining, production and trading companies. The big metals players dominate the industry and thus form a sort of oligopoly.

FY15 was a tough year for the sector despite an increase in production and demand, primarily due to lower global commodity prices. The global situation for metals and minerals was also adverse with spot prices of several metals going south. The value of India’s mineral production saw a decline as a result of the prevailing global situation. However, growth in demand brought some relief to the sector. The index for production of basic metals recorded a steady growth, while mining finally registered growth in 2015-16 after three successive years of decline.

The outlook for metals and mineral sector looks stable in the near-term because of a demand uptick and decline in inflation. Low per capita metal consumption, vast mineral resources and growing construction sector will act as drivers for the sector in the long-term. Reforms and clearances in the mining sector will further add to the growth of this sector.

Key Points:

- During FY09-13, the metallic minerals segment grew at a CAGR of 16%. However, it recorded a steep y/y decline of 14% in FY14. It further declined by 1% y/y in FY15. The non-metallic minerals segment grew at a CAGR of 18% during 2009-13, but also saw a decline in FY14. However, it recorded a growth of 1% y/y in FY15.

- During 2008-13, domestic production capacity of aluminium grew at a CAGR of 7.4% while the actual production grew at a CAGR of 6.8%. Production saw a steep decline in FY14; but revived in FY15 with a growth of 5% y/y.

- The index of industrial production (IIP) saw a decline of 0.1% in FY14. Basic metals grew by only 0.3%, while mining declined by 0.8% y/y. However, the industry saw a revival in FY15. Basic metals recorded a five-year high growth of 12% y/y, while mining finally registered growth after three successive years of decline. Growth was also steady in 1HFY16, with mining growing by 2% y/y and basic metals growing by 5% y/y.
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1. Industry Profile
1.1 Sector overview
1.2 Sector size
1.3 Competitive landscape
1.4 Environmental scanning

2. Market Trends and Outlook
2.1 Key economic indicators-India
2.2 Minerals
2.2.1 Metallic minerals
2.2.2 Non-metallic minerals
2.2.3 Minor minerals
2.3 Metals
2.3.1 Aluminium
2.3.2 Copper
2.3.3 Zinc
2.3.4 Other metals
2.4 Global prices
2.5 Market outlook

3. Leading Players and Comparative Matrix
3.1 Leading players
3.1.1 Hindalco Industries Limited (HIL)
3.1.2 Hindustan Zinc Limited (HZL)
3.1.3 Hindustan Copper Limited (HCL)
3.2 Comparative matrix
3.3 SWOT analysis

4. Tables and Charts
Table 1: Major metallic, non-metallic and minor minerals in India
Table 2: Key financials of major metal players (non-ferrous) of India
Table 3: Key features of MMDR bill
Table 4: Key financial ratios of the leading players (FYE Mar 15)
Table 5: Half-yearly financial results of the leading players (1HFY16)

Chart 1: Size of various segments of mining industry in India
Chart 2: Size of metallic minerals and non-metallic minerals sector
Chart 3: FDI in Indian metallurgical industries
Chart 4: Results of the Indian general elections
Chart 5: Current account deficit and fiscal deficit
Chart 6: Changing demographics of India
Chart 7: Quarterly GDP growth rate-India
Chart 8: Average monthly USD to INR exchange rate
Chart 9: Inflation-India
Chart 10: Repo rate
Chart 11: Contribution of industries in IIP by weight
Chart 12: Y/Y change in index of industrial production
Chart 13: Total value of mineral production
Chart 14: Share of states by value of mineral production
Chart 15: Share of metallic minerals (ores) by value
Chart 16: Annual production of metallic minerals
Chart 17: Share of non-metallic minerals by value
Chart 18: Annual production of non-metallic minerals
Chart 19: Share of minor minerals by value
Chart 20: Share of states by value of minor mineral production
Chart 21: Y/Y growth in cumulative production of major metals
Chart 22: Annual capacity and production of aluminium during last five years
Chart 23: Share of production capacity of aluminium in India
Chart 24: Aluminium production in the country
Chart 25: Annual capacity and production of copper
Chart 26: Share of production capacity of copper in India
Chart 27: Breakup of copper production by companies
Chart 28: Annual capacity and production of zinc
Chart 29: Share of production capacity of zinc
Chart 30: Breakup of zinc production by companies
Chart 31: Annual capacity and production of lead
Chart 32: Share of production of gold in India
Chart 33: Commodity metals price index monthly price
Chart 34: Aluminium monthly price
Chart 35: Zinc monthly price
Chart 36: Gold prices- London afternoon fixing
Chart 37: Breakup of company’s revenue by segments
Chart 38: Sales of HIL
Chart 39: Profit margin of HIL
Chart 40: HZL segments by sales value
Chart 41: Sales of HZL
Chart 42: Profit margin of HZL
Chart 43: Copper production by HCL
Chart 44: Net sales of HCL
Chart 45: Profit margin of HCL
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- Hindalco Industries Limited (HIL)
- Hindustan Copper Limited (HCL)
- Hindustan Zinc Limited (HZL)

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