OPPORTUNITIES

1

• OPPORTUNITIES
• CHALLENGES FOR
• COPPER TUBES
• IN INDIA
• BY GURMIT SINGH ARORA, MANAGING DIRECTOR
• RAJCO METAL INDUSTRIES LTD.

2
USES

• AIR-CONDITIONING
• REFRIGERATION
• VRF, VRV OR VRD AIRCONDITIONERS
• REFRIGERATED VEHICLES
• HEAT EXCHANGERS
• OIL COOLERS
• SOLAR HEATERS
• GEYSERS
• RADIATORS

3
USES

• COOLING TOWERS
• PLUMBING
• GAS PLANTS
• MEDICAL GAS PIPING
• COOKING GAS / GAS KITS
• FITTINGS ACCESSORIES
• ELECTRICAL APPLICATIONS
• COPPER ALLOY TUBES
• COPPER TEES

4
ESTIMATED TOTAL DEMAND OF COPPER TUBES IN
INDIATABLE 1
5
INDIAS GROWTH STORY

• GDP Growth of over 8 9
• Organized Retail
• Mushrooming of Malls
• International Hospitality Chains
• India an IT Capital
• Health Care Tourism
• Emerging booming Middle class.

6
VALUE OF GOODS SERVICES IN AIR-CONDITIONING
REFRIGERATION SECTOR (2006- 07)TABLE 2
7
MANUFACTURE IMPORT OF PACKAGED CHILLERS (2006-
07)TABLE 3
8
AIR HANDLING UNITS, PACKAGED/ DUCTED SPLITS/
TELECOM SHELTERS (2006 2007)TABLE 4
9
McKINSEY REPORT 2006 07FORECAST FOR
AIR-CONDITIONERS REFRIGERATORS
10

• PLASTICS FOR PLUMBING
• ALLUMINIUM FOR HEAT EXCHANGE
• LESSER USE OF COPPER DUE TO VALUE ENGINEERING
• COPPER FINNED / GROOVED TUBES

11
SUBSTITUTION THREATS

• ALUMINIUM FOR AIR CONDITIONING
• ALUMINIUM INTERCONNECTING TUBING
• VALUE ENGINEERING
• STAINLESS STEEL FOR MEDICAL GAS USE WITH AMONIA

12
ESTIMATED REQUIREMENT OF COPPER TUBE FOR
AIR-CONDITIONING REFRIGERATION 2007TABLE 5
13
CHALLENGES

• INTERNAL CHALLENGES
• A lot of Indian Industry still uses obsolete
  outdated methods of manufacturing
  
• Reliance on labour rather than automation
• Raw material used by many is still Copper
  Armature or motor winding scrap
  
• Eddy Current testing based only on clients
  insistence
  
• Lack of basic testing facilities
• Extruders Re-drawers separate companies /
  entities
  
• Substitution Threats

14
CHALLENGESSUBSTITUTION THREATS

• REFRIGERATOR
• BUNDY TUBING
• BONDED ALUMINIUM FREEZER BOXES
• VALUE ENGINEERING
• PRICE REDUCTIONS

15
CHALLENGESSUBSTITUTION THREATS

• RADIATORS
• VALUE ENGINEERING
• REDUCTION OF PERCENTAGE OF COPPER IN ALLOYS

16
CHALLENGES

• EXTERNAL CHALLENGES
• Ingress of MNCs lead to much higher quality
  level demand.
  
• Demand for JIT buyers expecting suppliers to
  become partners.
  
• Shaken by earlier hibernation SAB CHALTA HAI
  attitude.
  
• Import duty on Copper tube has been reduced to
  7.5 (BCD)
  
• FTAs ASEAN Agreements are making things more
  difficult
  
• Taxes are still not rationalized.
• Octroi or a form of town duty now only exist in
  few states is varying in separate cities for the
  same products

17
CONCLUSION

• DEMAND FOR COPPER TUBES IN INDIA
• 60000 TONNES P.A.

18
PERFORM
PERISH
19
DHANYAVADSHUKRIYATHANK YOU BON JOUR
NAMASTEAAOOJO SHUKHRAN JAI HINDKHUDA HA FIS