"Per capita intake of aluminium is just 2.6 kg now, while in China it is 30 kg. So we see huge opportunity in both packaging, cans and transport industry and we are looking to expand in these areas going forward. We expect to hold 40-45 percent of the downstream market," managing director Satish Pai said.
In the transportation business, the company will be contract manufacturing aluminium containers for bulker carriers and trailers which will help the goods transport industry bring down cost as the light weight aluminum containers can carry more payload.
It can be noted that almost all goods containers are built of steel now which increases the tonnage of the truck.
As part of entering the packaging business, Hindalco recently partnered with the Jute Corporation to make recyclable packaging material to reduce single-use plastic.
And as a first step, the company has launched the country's first aluminium foil-laminated jute bags for the Tirumala Tirupati Devasthanams, the trust that manages the Tirumala Temple in Andhra.
"Going forward, we aspire to make aluminium the 'smart metal of choice' by showcasing it as a supermaterial, with innate properties of strength, light weight, anti-corrosion and 100 percent recyclability," Pai said, adding they will soon roll this out to other temples and to other industries as well as a smart and sustainable packaging option.
At its aluminium foil manufacturing plant in Nagpur, the jute cloth is laminated with food-grade aluminium foils, and sent to artisans in Telangana for fabricating the bags in different sizes, which are available at an affordable price.
There is a strong response to the aluminium-foil jute bags and already 60,000 bags have been sold in the past six months alone.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.