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23
November, 2004
The
Aluminium Gallery — a Hindalco initiative to grow the
aluminium market in India
Hindalco,
an Aditya Birla Group Company, threw open "The Aluminium
Gallery" at Century Bhavan, Worli, to the public.
"In
India, the per capita consumption of aluminium is barely 1
kg compared with the world average of 5 kg and the western
world average of 20 kg. We believe that growth in this sector
can only happen if we aggressively link it to that of our
customers' growth. So to promote our customers' products and
create new markets through pro-active partnerships, we have
set up the Aluminium Gallery," says Mr. Shashi Maudgal,
Chief Marketing Officer, Hindalco.
A great
platform to showcase diverse and novel uses of aluminium,
The Aluminium Gallery is the first of its kind in the commodity
business. Housed at Century Bhavan, Worli, this 800 sq.ft.
outlet showcases the finest products for homes, buildings,
offices and projects, with a bias for building and construction.
Worldwide,
aluminium usage in buildings has grown tremendously: aluminium
windows are products of choice, while large 'energy saver'
buildings have aluminium structures holding up glass. Aluminium
composite panels are in wide use. "There is hardly a
home without an aluminium ladder, and light-weight remote
controlled aluminium garage doors are becoming increasingly
common. Aluminium furniture is preferred for outdoors where
its corrosion resistance and light-weight qualities provide
unique advantages," added Mr. Maudgal.
The market
for aluminium in India, particularly for building and construction
has not grown to the desired level. This is largely because
building and construction products based on aluminium are
fabricated by small and medium scale manufacturers, who play
only the price variable and have felt compelled to supply
lower-end products which do not build markets. "When
quality suffers, markets die. We need to promote quality and
pull the entire market upwards," avers Mr. Maudgal.
Consequently
Hindalco has decided that to establish quality products like
doors/windows, furniture, ladders, composite panels and rolling
shutters, it will partner its customers in promoting them,
through the Aluminium Gallery.
Meant
primarily for architects and builders, who will be shown products
carefully selected by Hindalco, individual home-owners are
also welcome to the Gallery. Leads generated at the Gallery
will be passed on to participating manufacturers. This is
a unique initiative in the aluminium industry, positioning
Hindalco as the 'market driver' in India, confirms Mr. Maudgal.
Based
on the success of this outlet, Hindalco plans to set up many
more galleries in the major metros in the first phase and
the mini metros in the next phase. "We are also exploring
the possibilities of entering into joint branding and co-marketing
possibilities with quality players. A Hindalco certified product,
may well eventually assume the same credibility as an 'Intel
Inside' computer in the foreseeable future," said Mr.
Maudgal.
Background
The Indian aluminium market in India was 800,000 tons in 2003-04,
approximately 3 per cent of the world market of 29.5 million
tons.
The major
consuming segments in India are electrical transmission conductors,
transport, building and construction, consumer durables and
packaging.
Growable
markets
Hindalco has identified segments (and sub-segments) that are
'growable' through its market driving efforts. These are kitchen
foils, wheels, transportation and building / construction. Of
these, Hindalco participates directly in the first two through
its Freshwrapp / Freshpakk and Aura brands — both have
grown ten-fold in the last three years — and through its
customers in the latter two segments. In transportation, Hindalco
is working with the railways for developing freight wagons and
with truck manufacturers for developing aluminium bodies. Lighter
weight translates to higher pay-loads, and lower fuel consumption,
so aluminium is consistently gaining at the expense of heavier
metal worldwide, in transportation. |
