Fact Sheet
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Leading manufacturer of Aluminum Extrusions and Aluminium Alloy Ingots.
Manufacturing facility is located on a 25-acre property in Bhiwadi, Rajasthan,
about 70 kms from Delhi.
Products are used in various industries like Construction, Automobiles,
Electrical Equipments and in Energy Sector.
Current Manufacturing capacity is 27,000 MT per annum of Aluminium
Extrusions and Alloy Ingots, 7,800 Kms/annum of Power/Control Cables and
1,08,000 Kms./annum of Aluminium Conductors.
Company has successfully implemented 1100 UST Extrusion Press and 2100
UST Extrusion Press to produce high precision profiles for its customers.
Most of the Automobile Companies have their manufacturing base in the
radius of 10-15KM. and the construction activities are taking place in the
radius of 50 Km.)
One of the first Extrusion companies of India to be ISO 9001:2008 certified by
Det Norske Veritas (DNV) of the Netherlands
The Company currently has 800 employees with no incidences of industrial
unrest.
IAIL
Date of Incorporation
17.10.1979
Head Office :–
Aluminium Extrusion Division :
606-Tolstoy House, 15-Tolstoy Marg, New Delhi-110001.
Phone:+91-1143564200, 23738011-13, Fax:+91-1123312677,
@: info@indoalusys.com, Url : www.indoalusys.com
Power/Quad/Control Cable Division
59, M.M. House, 2nd Floor, Rani Jhansi Road, Karol Bagh, New Delhi-110055, Phone : 43758100-115
@ : sales_cables@indoalusys.com :
Architectural Division :
59, M.M. House, 2nd Floor, Rani Jhansi Road, Karol Bagh, New Delhi-110055, Phone : 43758100-115
@ : infoaap@indoalusys.com
Works :
SP-2/333, Bhiwadi Industrial Estate, Dist. Alwar, Rajasthan.
Phone: 01493-220764/220868/306500, Fax: 01493-220786,
@l: admin@indoalusys.com
IAIL
Our Operations (at Factory Site at Bhiwadi)
 Aluminium Extruded Sections for Industrial use.
 Architectural Products namely Doors, Windows, Curtain Wall,
Structural Glazing etc. for commercial as well as residential
buildings, Govt. Buildings and at many places.
 Aluminium Alloy Ingots for Automobile Sector.
 Quad/Control/Power Cables for Indian Railways/Delhi Metro
and other Public Sector Undertakings.
 New Extrusion Presses of 1100 UST & 2100 UST for different
type of profiles as per specification of the customers.
IAIL
Applications
User Industry
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Construction Activities
Automobiles
Electric Switchgears
Control Panel Boards
Light Fittings
Textile Accessories
Moulded Luggage
Telecommunication
Instruments
Sprinkler Irrigation
System
Office Equipments
Sports Goods
Survey Instruments
Wall Clocks
Knitting Niddles
IAIL
•Aluminium
Extrusions
•Architectural
Products
•Exports
•Traders
Architectural
and decorative
fittings, doors
and windows,
false ceilings,
electronic
component,
bus body, rail
coach, bicycle
rims etc.
User Industry
Automobile Industry
 Two Wheelers
 Four Wheelers
 Heavy Vehicles &
 Earthmoving
Equipments
Applications
Alloy Wheels
Cylinder Block
Alloy
Ingots
Cylinder Head
Cylinder Head cover
Intake Manifold
Exel Housings
Gear Box Housings
Brake Lining
Misc. Small castings
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Applications
User Industry
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Indian Railways/Metro
Power Grid
State Electricity Boards
BHEL, NTPC, ABB
Steel Plants, Siemens
Reliance Engery,
J.P.Industries,
Jindal Power
IAIL
Quad/
Control/
Power
Cable
Quad cable of all sizes
for Indian Railways/
Metro for signalling.
Power Cable for Power
Grid, Indian Railways,
BHEL, NTPC etc. for
signalling.
Control
Cable
for
Power
Grid,
NTPC,
BHEL etc.
Industry Overview
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The Aluminum Extrusion is a high growth industry due to
derived demand from the Construction, Housing, Electric
Equipment and Automobile industries.
The applications of aluminum extrusion include architectural
and decorative fittings, doors and windows, false ceilings,
electronic components, vehicle bodies and rims etc.
In India, the largest player is Jindal Aluminum, which is based
at Bangalore and is focused more on the Southern and Western
markets. In addition, Century Extrusions and Bhoruka
Aluminium also produce Aluminum Extrusions.
Indo Alusys is one of the largest player in the North Indian
market and its products command a higher premium due to its
quality and operational efficiencies.
IAIL
Present market demand, production & consumption
Aluminium Extrusion Industry has passed
through various phases in the last decade.
Since 2005 there is an unexpected growth
in the demand of Aluminium Extrusion.
Due to increase in the cost of Steel, Stainless
Steel and Copper, various new applications
are emerging for Aluminium.
IAIL
ISO Certification
The Company has an
excellent track record
and is in profits from last
10 years. IAIL believes
in high quality and has
ISO 9001:2008 certification
from
world
renowned
Certifying
Agency DET NORSKE
VERITAS (DNV) OF
NETHERLANDS.
IAIL
Global Industry Outlook:
As per the data furnished by Aluminium Association of India, aluminium production of
the major aluminium producing countries would reach 50,335 thousand tons as
compared to 40,131 thousand tons in 2008. Growth in Chinese aluminium output,
which contributes about 43% of the world primary aluminium production, was 13,695
thousand tonnes in 2008 (34%) which would reach to 21,481 thousand tonnes in 2014
(43%). The aluminium output of India which was 1348 thousand tonnes in 2008 (3%)
which would reach to 3,958 thousand tonnes in 2014 (8%).
Domestic Outlook:
The overall demand of aluminium extrusion is expected to grow from 2,50,000 tons in
2007-08 to 4,77,000 tons by 2014-15. In India, aluminium extrusion industry is
expected to grow by approx. 10% every year.Due to demand and growth of Aluminium
Extrusion Industry in the recent past, most of the existing Aluminium Extrusion Plants
are already operating by their maximum capacities. The new demand will have to be
met from the expansion of existing units or creation of new capacities.
Assuming that existing capacities might add about 5% of production of Aluminium
Extrusions by way of improved productivity, the remaining demand supply gap will
have to be bridged by new projects.
IAIL
Import of Raw Material (Aluminium Ingots/Tense/T.T.)
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U.A.E.
Europe
Hindalco
Middle East
Nalco
Australia
Balco
Primary Producers In India
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In-house Facilities
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The plant has a most modern Foundry having
facility of melt and cast Aluminium Alloy Billets of
very high quality.
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Extrusion Dies are manufactured in-house.
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The company is equipped with in-house facility of:-- Anodising
-- Electro-coloring
-- Powder Coating.
IAIL
The covered shed for Aluminium Alloy Ingots has
proper arrangement for hand sorting for the
mechanization of Cold Refining to achieve higher
productivity and better sorting which allows uses of
various low grade materials.
We have a technical department which includes hot
refining, cold refining, production planning and
control, quality and process control, maintenance and
project and new developments, each being handled by
highly experienced and qualified engineers.
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Alloy division of Indo Alusys produces ingots which are primarily used by auto
components companies
Alloy Division Profile
Revenue (Rs cr.)
• Indo Alusys has an alloy ingots capacity at 10,000 MT per
annum
• It recycles scrap aluminum to produce alloy ingots
• It supplies alloy ingots to major ancillary companies of
automotive sector
• Having a manufacturing facility within the auto component hub
offers a great locational advantage
• Since this division is producing prime raw material, its
customers are regular/recurring. This division is getting regular
orders worth 700-800 MT per month from various auto
component manufacturers
• The division currently has 100 employees1
Key customers
Customer segmentation (% of revenues)
Others
Top 5 customers
1 Employees include staff and workers
19 Source: Company
Indian auto component market is expected to grow at a CAGR of 18% p.a. till 2020
Indian Auto Component Market
Growing domestic automobile market and increasing exports are expected to drive
sector growth
The 4-wheeler segment utilizes more than 70% of the total auto component
production
All figures are in USD bn
Key observations
• Auto component market in India is valued at USD 26 bn in 2011
• Over the next 10 years, the market is expected to grow at a CAGR of 18 % and cross USD 113 bn by 2020
• 53% of auto components (by volume) are used in passenger cars and utility vehicles followed by 22% in two -wheelers
• Capital investments in the industry have witnessed a CAGR of 21% from USD 3.8 bn to USD 12 bn during FY2005 -11
• The number of organized players in the sector are less than 10% of the ~6000 players that exist in the market today; however they contribute more than
75% to the total production
• Within the organized segment, large Indian players like Bharat Forge, TVS group, etc. account for 43% of the overall production while multinationals
account for 15%
• Of the 600 organized players in auto component industry, 30% have revenues greater than USD 25 mn
20 Source: IBEF
Robust export demand, policy support and competitiveness of indigenous market
are likely to drive this growth
Investment in R&D and
Infrastructure
Rising export demand
• The export market for auto components has
grown at a CAGR of 17% during FY05-10
• Increasing number of international OEMs
prefer India as the sourcing hub for auto
components
• India’s frugal engineering capabilities in
terms of lower costs of raw material and
labor, broad supplier base, competent
design, manufacturing & engineering skills
have been key factors in driving demand
Favorable government policies
• With India becoming the global OEM
sourcing hub, auto component OEMs are
increasingly focusing on investments in
R&D
• Auto Policy 2002 approves 100% foreign
investment in the auto component
manufacturing business. Additionally, it exempts
manufacturing and imports in the sector from
licensing and approval
• Indian manufacturers are embracing best
practices for shop-floors like TPM, 6 Sigma
and deploying IT enabled automotive
support systems
• Automotive Mission Plan 2006-16 promotes
setting up of automotive training institutes, auto
parks, design centres, etc.
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Minda Industries Ltd. (switch div.),
Endurance Technologies Pvt. Ltd.
(suspension div.) and Sona Somic Lemforder
Components Ltd. received the TPM
Excellence Award (outside Japan) in 2011
• The Department of Heavy Industries & Public
Enterprise started a USD 200 mn fund to
provide interest subsidy for loans and
investments in new automotive plants and
equipment
Recent Developments
• International players are expanding their capacities in India due to cost benefits and favorable policies
• Ford expanded its manufacturing capacity in South India by 20% in 2010 and plans to make it the hub (engines) for Asia Pacific and Africa
region
• Honda plans to invest USD 115 mn for setting up its powertrain facility in Rajasthan
• Indian players are being recognized globally for efficient processes
• 15 Total Productive Maintenance (TPM) Awards won by Indian players
• 3 Indian OEMs won the Japan Institute of Plant Maintenance (JIPM) Award
21 Source: IBEF
As Indo Alusys is present in the northern auto component hub, this gives the company
a huge locational advantage to cater to auto component companies
Indian Auto Component Market
Engine & engine parts and transmission & steering segments account for 50% of
the market
Automobile players are centered across 3 major clusters in the North,
West and South of India
North/Central
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Delhi-GurgaonFaridabad
Mumbai-PuneNasikAurangabad
Bosch
Denso
RICO Auto
Sona Koyo
Motherson Sumi
South
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West
Chennai Bangalore-Hosur
Auto Component Hub
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Bosch
Bharat Forge
Denso
TAL
Manufacturing
Delphi India
Visteon
Bosch
Denso
Sundaram group
East
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Alfa Industries
Exide
Key observations
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The following segments account for a major share in the overall auto component sales
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Transmission & steering systems (specially gears and clutch assemblies) are likely to see a growth in demand due to rising traffic density in India
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Engine & engine parts are likely to experience growth in line with increase in demand for PVs and CVs. However, emerging technologies such as hybrid engines
could have a significant impact on the size of this segment going forward
The three major OEM clusters enable automobile players to remain in close proximity to their key markets as well as to auto component suppliers
22 Source: Deloitte Analysis, Freedonia
Also increasing focus on fuel efficiency is resulting in reduction of vehicle weight
leading to greater usage of aluminum in automotive sector
Key trends impacting usage of Aluminum in Auto Comp.
• Fuel efficiency to increase from 27 miles per gallon to 35 miles
per gallon by 20201
• Change in consumption pattern
‒ With focus on higher fuel efficiency, demand of heavier trucks is
being replaced by increase in demand for B,C & D unibody
vehicle with lower curb weight. This in turn is driving the demand
for more aluminum consumption per vehicle
• Threat of substitutes is low in future
‒ Going forward, threat of substitute products (iron, steel,
magnesium) is quite low as any other material would not be able
to yield fuel economy like that of aluminum
• Future demand is expected to come from drives and
transmission
‒ The demand of Aluminum over next decade is likely to be driven
primarily by new applications for suspensions, knuckles, closures
and body structures. Those applications account for less than 10
kgs of aluminum content today, but could grow to 25 kgs of
vehicle content by 2020.
• Trends in India
‒ In India, only 2 wheeler OEMs have started manufacturing
aluminum engine blocks. The penetration of Aluminum amongst
domestic OEMs is limited to K series engine manufactured by
Maruti.
Attractive Product Segment on usage of Aluminum
38%
80% of
Aluminum
consumption
Engine – 55.65 Kgs
17%
Wheels – 25.16 Kgs.
17%
Transmission – 24.86 Kgs.
10%
Heat Exchangers – 14.35 Kgs.
Engines
transmission
other parts
Steering Component
closure
Heat Shields
Cradels & Sub-frames
1
wheels
heat exchangers
drive line
brakes
Suspension (arms and Links)
bumpers
body structure
On an average, Aluminum contributes ~149 Kgs per vehicle which is forecasted to increase to ~ 179 Kgs per vehicle by 2020 thus resulting
in more than 10% of the curb weight.
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23
Based on Druker worldwide report for trends in North America