PROSPECTS OF COPPER IN INDIA

byDR. D. DE SARKAR

Chief Executive Officer

INDIAN COPPER DEVELOPMENT CENTRE

ICDC WNFA, Mumbai

ICDC

•Mankind first started using copper for domestic implements during the “Chalcolithic ” period (8000 B.C. to 4000 B.C.) – the transitional period from the Stone Age to the Metal Age.

• Image of copper has undergone considerable transformation from a Traditional Metal of Artisans in ancient days to a Metal of Strategic Importance essential for development of any country.

ICDC

IMPORTANT END USE SECTORS

• Electrical

• Transport

• Process Industry

• General engineering

• Consumer durables

• Building & constructionICDC

KEY DRIVERS FOR GROWTH PROSPECTS

Growing domestic market extending to rural areas

Govt.’s priority for Infrastructure development

Indispensability of copper for many end use sectors which are on fast growth track

Increased quality consciousness

Improved life style

Newer opportunitiesICDC

EXISTING MARKET - WITH HIGH GROWTH POTENTIAL

• Electrical

• Transport

• General Engineering

• Consumer Durables

ICDC

ELECTRICAL

• Very low per capita electricity consumption

• Addition to generation capacity

• Thrust on improved Power Quality by better Transmission, Distribution & Utilization System

• Introduction of Energy Efficient ‘STAR’ rated consumer durables

WHY

ICDC

TRANSPORT

Railways― Increased plan for track electrification

― Higher capacity loco manufacture

― Underground / overhead services

― AC coaches

― Improved signaling system

Automobile ― Auto electrical― Efficient electrical system― Increased production facility

WHY

ICDC

AC & R MARKETWHY• Domestic demand for AC is increasing

• Energy efficient (VRF) AC is becoming popular

• Demand for commercial establishments will give maximum demand push

• 15-20% p.a. copper tube demand is possible (present estimated usage =30,000 tpa)

ICDC

• Copper motor rotor

• Agricultural sprinkler

• Desalination

• Anti Microbial property based applications

• Reverse substitution

FUTURE POSSIBILITIES

ICDC

CHALLENGES

EXTERNAL INTERNAL

ICDC

EXTERNAL

Government Regulations

Tax / Duty, Raw Material, Environment

Inaccessible technology

Unfairly advantaged competitors

Substitution threat

Multiple specifications for same product

Small order lot

Adverse attitude towards foundry by qualified engineersICDC

INTERNAL

Culture (risk aversion & slow)

Entrepreneur – professionalism

Inability to track market dynamics

Technology upgradation

Lack of qualified engineers and trained skilled work force

ICDC

SET TARGETS TO MEET THE OBJECTIVE

Be cost competitiveDo not compromise on input material qualityImprove yieldReduce fuel consumptionPlan operations in proper sequenceAvoid wastagesLook for technology upgradation

ICDC

contd../

SET TARGETS TO MEET THE OBJECTIVE

Gain customer confidence Interact on technical issues Maintain delivery schedule

Be aware of Market trend Change in regulations

ICDC

… contd.

Lucky people GET Opportunities

Brave people CREATE Opportunities

Winners CONVERT the Challenges into Opportunities

ICDC

CONCLUSION

• All the stake holders – the primary copper producers, semis manufacturers and end users need to come to-gether – become Partner. ICDC can play an important role.

• Proper support from Policy Makers will surely make both the copper industry and the user sector benefitted and ensure sustained development.

ICDC

ICDC