India’s expanding economy and population are the biggest drivers of energy demand. Universal access to electricity is one of the primary aims of the Government, which has launched multiple schemes to support Production, Transmission and Distribution of electricity. Electricity demand in India is growing at 13% per annum, whereas its connection grids are growing at 5% per year. Growing energy demand and the consequent rise in utility numbers has seen continued growth in Aluminum Wire Rod production capacity. Rods and Conductors Manufacturers/Suppliers need to keep pace with developments and trends of the industry. This industry docket looks at the current scenario, dynamics and trends prevalent in the Indian Aluminum (Al) Rods and Conductors Market.
Key Questions this Report Will Answer:
1. What is the supply structure of the Indian Aluminium Wire Rods & Conductors Market?
2. How is the Al Rods & Conductors manufacturing ecosystem expected to evolve in India?
3. What are the trade dynamics of Aluminium Rods & Conductors in India?
4. What are the drivers, restrains and challenges impacting the Aluminium Wire Rods & Conductors Market in India?
5. What are the value chains & key modes of supply of Aluminium conductors to Transmission and distribution utilities?
6. What are the key success factors for companies in the Indian Rods and Conductors Market?
- The global aluminum rods market is witnessing a CAGR of 2.16%. Africa and ASEAN to record the strongest growth in the 4-5% range
- Government Initiatives offer Positive outlook to Aluminum Rods & Conductors Market
- End users willing to consider suppliers who provide higher value, consistent quality and competitive pricing; focus on cost competitive differentiation.
2. Scope & Limitations
3. Key Market Takeaways: India
- Progressive Mega Trends drive utilities’ installation and conductors demand
- Conductors Market likely to grow on doubling energy demand
- New T&D utilities are added annually to support growing electricity demand
- Demand for Wire Rods set to grow due to GoI’s energy initiatives
- Demand from Conductor manufacturing (In-house & External) drives the demand for Wire Rods (EC & Alloy)
- Opportunities are available to utilize excess capacity by directing at exports that are expected to increase
- Healthy trade dynamics exist for India. Wire rods are exported to the USA, Latin America, Africa, the Middle East and Southeast Asia
- Domestic supply fulfils most of the domestic demand, with enough remaining for exports
- Government’s focus on new T&D investments to drive demand
- “Power for all” and “Rural Electrification scheme” to drive Power grid expansion
- Growing trend seen toward securing feedstock and in-house demand generation through integration
- Average Capacity utilization in the Indian conductor industry is currently 83%, which is high enough. Limited further production may be possible
- EPCs play the main role in the distribution channel
- Utility companies drive procurement process
- Competitive Prices, Quality, Technical Capability and Proximity are the key factors that influence the decisions of T&D Utilities
4. The Industry going Forward
- Transmission utilities for renewable power to rise
- Public and Private investments in Non-renewable & renewable Power generation to grow in the future driving the setting up of additional T&D projects