Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Copper - Will it shine? - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Nov 29, 2000

    Copper - Will it shine?

    The two main players, Sterlite Industries Ltd. (SIL) and Indo Gulf Industries, dominate the copper industry. A third player, Hindustan Copper - the state run entity - is expected to be put on the disinvestment block.

    Prior to FY00, India was importing a significant share of its copper requirement. New smelter capacity has come on stream only in the last two years. In FY99, India produced only 35,800 MT of copper. Sterlite and Indo Gulf set up smelter capacities of 100,000 MT each and FY00 was the first full year of commercial production. These companies now plan to augment capacities to 150,000 MT by the end of FY01. Sterlite has already increased capacity to 120,000 MT through Phase - I of de-bottlenecking. On completion of Phase - II the capacity will be increased to 150,000 MT.

    Copper consumption in India for FY00 was estimated to be at 290,000 MT. Domestic production was approximately pegged at 220,000 MT while the balance was through imports of 70,000 MT. In FY01, the imports are anticipated to further decline with these companies augmenting capacities and deriving gains of process efficiencies.

    Demand break-up
    Indo Gulf Ind. 102,000
    Sterlite Ind. 86,000
    Hindustan Copper* 30,000
    Imports* 72,000
    Total demand 290,000
    * estimates  

    Demand for copper is expected to clock 330,000 MT in the current year. With the dominant players expanding capacities and reckoned to be operating at above 100% utilization, the imports are estimated to drop by half to 30,000 MT. The balance 290,000 MT is the estimated domestic production.

    The demand for the non - ferrous metal, between FY00 and FY04, is expected to grow at a compounded rate (CAGR) of 11%. The key consumption industries are telecom, auto and housing. Strong growth in these industries will facilitate buoyant copper demand. These industries have potential to register robust growth rates in the coming years with penetration levels being abysmally low.

    The Government has announced a slew of reforms in the telecom sector to kick-start this industry. Further, the housing sector is anticipated to grow by more than 10%. This should help sustain the growth in copper demand. However, the current year has seen a slow down in the auto sector, which may fetter the copper industry growth rates.



    Equitymaster requests your view! Post a comment on "Copper - Will it shine?". Click here!


    More Views on News

    Securities & Intelligence Services Ltd. (IPO)

    Jul 31, 2017

    Should you subscribe to the IPO of Securities & Intelligence Services Ltd?

    Why Super Investors are Underperforming in This Market (The 5 Minute Wrapup)

    Jul 8, 2017

    If Super Investors can wait for the right pitch, so can you.

    Tejas Networks Ltd. (IPO)

    Jun 14, 2017

    Should you subscribe to the IPO of Tejas Networks Ltd?

    Discover the Secrets of Hidden Smallcaps From These AGMs (The 5 Minute Wrapup)

    May 26, 2017

    Don't be surprised to come across some Super Investors there!

    A Trader's Nightmare. A Business Owner's Delight. (The 5 Minute Wrapup)

    May 19, 2017

    Not all small-cap investors see themselves as traders. Some see themselves as business owners.

    More Views on News

    Most Popular

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    The Most Important Innovation in Finance Since Gold Coins(Vivek Kaul's Diary)

    Aug 10, 2017

    Bill connects the dots...between money and growth, real money and real resources, gold and cryptocurrencies...and between gold, cryptocurrencies, and time.

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    5 Steps To Become Financially Independent(Outside View)

    Aug 16, 2017

    Ensure your financial Independence, and pledge to start the journey towards financial freedom today!

    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms


    Aug 26, 2013 (Close)


    • Track your investment in STERLITE IND. with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks


    Detailed Financial Information With Charts