How to play India’s growing demand for aluminium

With an expanding power sector and government spending on infrastructure, India's demand for aluminium is likely to soar. Here, we tip one cheap way to profit.

Cost is everything when it comes to commodities, and India's aluminium producers are among the most competitive in the world. Hindalco Industries (Luxembourg: HINDG) is one of the largest and best-known companies in the sector, with a 2011 turnover of around US$15bn.

It's the largest copper and second-largest aluminium producer in India, with market shares of 51% and 33% respectively. On the aluminium side, it does everything from bauxite mining, to smelting to recycling. Meanwhile, its copper smelter is the world's largest custom smelter at a single location.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.