VL is positioned to make a significant contribution to global aluminium demand, which is expected to increase substantially over the next few years. The rapid growth of the emerging nations led by China and India and the concomitant growth in aluminium demand in these countries is expected to benefit VL. Aluminium consumption in BRIC nations alone is expected to increase at a CAGR of 9% over the period 2007-2020 while global aluminium consumption is anticipated to more than double from 38 mt to 78.5 mt over the same period. India’s demand for aluminium is expected to touch 2.5 mt by 2015.
India is positioned to become one of the world’s largest producers of aluminium, with the 5th largest reserves of bauxite globally of 2.3 billion tonnes and the 4th largest reserves of coal worldwide of over 250 billion tonnes. The domestic market is currently growing at a robust pace, which augurs well for VL. The firm would benefit from the continued market expansion, which would help it tap a wide range of new business segments. Increasing investments in the Indian power sector coupled with rising consumerism have driven growth in industries such as packaging and consumer durables. VL, with its superior product portfolio, is competitively positioned to take a lead in catering to these industries. Proximity to high growth markets of Asia and Middle East, and the co-location of abundant bauxite and coal are added advantages for the firm.