'Copper sector will grow at GDP rate'

TRADE TALK/ Ajit Advani

The International Copper Promotion Council (India) is the India centre of the International Copper Association (ICA). The ICA members account for 80 per cent of the world's copper production. Ajit Advani, CEO, ICPCI, sees huge potential for growth in copper consumption in the country, as the power sector grows.

In an exclusive interview, Advani told Rajesh Bhayani that India's copper sector will grow at 7 to 8 per cent in the coming years. There is adequate production capacity (existing and planned) within the country to cater to the anticipated demand, he added.
Excerpts.

How do you see the domestic copper industry in the coming years?

The Indian copper industry is expected to grow in line with its GDP. The growth rate will be between 7 and 8 per cent. The fast-growing power sector will be a major driver of growth in copper consumption. The country's total copper production will soon touch the 1 million tonne mark. The current consumption is 4.5 lakh tonne and the rest is exported with value addition.

Would you elaborate on your point that copper will grow in line with the country's GDP?

The annual per capita consumption of copper in India is only 0.4 kg as against 2.6 kg in China and 15 kg in developed countries. However, the planned mega expansion of power infrastructure, energy conservation initiatives, boom in the construction sector and increasing penetration of appliances assure strong growth in demand for copper in the years ahead. India's power sector is growing at a rate higher than the country's GDP.

The power generation capacity is expected to nearly double with the addition of 100 gw by 2012. An increasing proportion of this will be from renewable energy, which is more copper-intensive. The construction sector is witnessing an unparalleled boom in all segments "" retail, hospitality, IT, healthcare, commercial and residential. Appliances, such as domestic air-conditioners, have a market penetration of just 1 per cent in India as against 60 per cent in China.

Is the comparatively cheap aluminium set to replace copper as an alternative metal?

Copper's superior properties, such as its benchmark electrical and thermal conductivity, make it very difficult to be substituted by an alternative metal without sacrificing performance and energy efficiency. India needs to conserve all electric power it can, as this is one of the biggest infrastructural bottlenecks in achieving sustained high economic growth and alleviating poverty.

Furthermore, global climate change is a very real concern and it is necessary to reduce emission of greenhouse gases by using energy in the most efficient way. These objectives can only be achieved by using copper.

What is the future of copper industry in the global perspective?

Copper's unique attributes make it the material of choice in several applications. There are a number of key trends in the power sector, which provide major thrust to the increased use of copper. The future economic and social development will drive electrification of the lesser-developed regions.

The concerns of increased energy prices, primary fuel supplies, access to electricity, climate change and quality of supply will cause a significant shift towards renewable energy, distributed generation and energy efficiency.