Very rarely do Indian companies lead the world in their field. Integrated aluminium companies are a pleasant change. Their natural cost efficiency will stand them in good stead at a time when global prices are moving upwards.Not so for the downstream industries, those who process aluminium and sell value-added products. They cannot boast of either cost control or product development. Worse still, they have not even bothered to develop markets for their products. This lack of a nurtured customer base makes them extremely vulnerable to the onslaught of multinationals. These see potential in India's meagre consumption figure of 0.5 kg per annum and have finances and products to make the most of this opportunity.
Similarly, the downstream industries will also lose out to the domestic integrated companies, who have the advantage of cheaper aluminium. In the present situation there is no future for them on a standalone basis. They must either merge or go under.