Commodities

‘Aluminium can consumption well below global average; set to surge’

Twesh Mishra New Delhi | Updated on May 22, 2019 Published on May 22, 2019

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The consumption of aluminium cans for storing beverages, food items and household products is expected to grow manifold from the current levels, according to Ball India.

The company supplies aluminium cans for beverage majors like Coca-Cola as well as for beer companies from its Andhra Pradesh plant, set up in 2015, and the Maharashtra plant acquired from Rexon in 2006.

Per-capita consumption

“We estimate that there will be an 8X growth in consumption of aluminium cans in India by 2030. Currently, the per capita can consumption in India stands at around one per annum. In comparable economies such as Vietnam, the per-capita consumption is approximately 70 per annum; in China, it is around 40 per annum,” Amit Lahoti, Managing Director – India, at Ball Beverage Packaging (India) told BusinessLine.

The combined capacity of Ball India is 1.6 billion cans per annum.

The company is currently running below its capacity and caters to the lion’s share of India’s aluminium can needs. Being one of the two dominant can manufacturers in India, the company expects to increase capacity utilisation in line with the growing domestic demand.

“The can-recycling rate in India is estimated to be 91 per cent, which is one of the highest in the world. The total beverage can market in India is estimated to be nearly 2 billion and has been growing at double digits in recent years,” said Lahoti.

“The investment in installed capacity has been done ahead of the demand curve. Further, FDI is expected to flow into the sector as demand continues to increase,” he added.

Published on May 22, 2019
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