COPPER INDUSTRY IN INDIA

India has a huge growth potential in copper consumption for the next 20-25 years as the government increases focus on smart cities, rapid urbanization and investments in infrastructure.

Segmentation of Global Copper Pipes and Tubes Market

Copper has major application in HVAC segment. Rapid growth in the construction sector also has increased the demand for HVAC applications. This segment is shifting toward intelligent and energy efficient systems. This shift is anticipated to enhance the use of copper pipes and tubes over other substitutes. 

Why copper:

1. Copper is a malleable and ductile metallic element that is an excellent conductor of heat and electricity.

2. It is corrosion resistant and has antimicrobial properties.

3. It is one of the most recyclable of all metals. Recycled copper cannot be distinguished from primary copper.

4. Copper has better heat transfer properties than aluminium.

Major Players:

1. Hindustan Copper Limited (HCL) - Public Sector
2. Hindalco Limited – Private Sector
3. Vedanta Industries Limited - Private Sector

Opportunities:

As copper has many applications, there is a huge opportunity for organised players in the market:

1. India has 53.3 Million Middle Class Households and only 52% have ACs.
2. Smart cities project and increasing household income will lead to huge demand of copper products.
3. Electric vehicles is another upcoming market. India has committed to electrification of vehicles by 2030. Usage in electric cars alone to up demand by 1.2 million tons
4. An average Refrigerator consumes about 2 Kg of copper and average size of air conditioner consumes about 6.8 kgs of copper per unit. Due to global warming and increasing household income, India is a big market for AC’s.
5. Increasing office spaces and affordable housing will also increase the consumptions of ACR units.
6. Copper is preferred over steel and iron pipes and tubes in plumbing applications.

Challenges:

Despite the growth, India’s copper industry is going through tough time lately and is facing certain challenges-

1. Cheap refined copper imports from Japan and other ASEAN countries that has decreased the operating capacity of Indian makers to about 75%.

2. Free Trade Agreements (FTA) by government is making India’s copper sector redundant.

3. Comprehensive Economic Partnership Agreement (CEPA) with Japan has led to increase in imports by almost 20 times affecting India’s domestic copper industry.

4. No Govt. initiatives to make it a level playing field for domestic players.

5. Withdrawal of export incentives.