Aluminium recycling is the process by which scrap aluminium can be reused in products after its initial production. The process involves simply re-melting the metal, which is far less expensive and energy intensive than creating new aluminium through the electrolysis of aluminium oxide (Al2O3), which must first be mined from bauxite ore and then refined using the Bayer process. Recycling scrap aluminium requires only 5% of the energy used to make new aluminium. For this reason, approximately 31% of all aluminium produced in the United States comes from recycled scrap.

Aluminium recycling is economically beneficial to both the aluminium and recycling industry. The capital cost for the production of recycled aluminium is already recognized to be far lower than making new aluminium. The financial benefit has also spurred the development of the recycling program.

India's per-capita consumption of aluminium, it is 0.6 kilograms per person. Whereas in developed markets the consumption level is around 20 kilograms. "India obviously has a tremendous (potential) market for recycled aluminium. Recycled aluminium was sure to shadow growth in primary aluminium usage, which is projected to more than double in the next five years. Recycled aluminium had a huge competitive advantage as the cost of manufacturing was only 5 percent of primary aluminium.

Aluminium Ingot

Ingot and billet play an integral part in the production of many aluminium products. Plate, sheet, foil, wire, rod, and bar products are all produced by pressing or rolling ingot and billet.

Ingot and billet are cast from molten aluminium. In the cast house, crucibles of molten aluminium empty their silvery liquid either directly into molds or into a holding furnace where the metal is kept molten at temperatures between 1,200 and 1,500 degrees Fahrenheit. Alloying elements are then added.

The process of casting aluminum ingots takes place through the fusion and refining of aluminum scrap previously retrained through the use of specific technological installations. The process that allows to obtain aluminum ingots from aluminum scrap is called smelting process.

Aluminium Ingots are produced through the smelting process. Various grades of ingots are produced which are used for production of castings in Auto Industry as well as electrical applications. Ingots of various dimensions with maximum purity of 99.7%. Ingots are the material that is cast into a shape suitable for further processing. Ingots usually require a second procedure of shaping, such as cold/hot working, cutting, or milling to produce a useful final product. Aluminium Ingots are re-melted and further processed into a large number of products for various downstream applications.

Aluminum ingots can be used in different sectors, including automotive, household appliances, lighting, construction, mechanics and household goods. The ingots are sent to other process or flattened into thin sheets, which are then used to make new cans. Aluminum is becoming a favourite with architects and builders opening up a potential for increasing use of metal in the construction industry. Likewise, the use of the metal is increasing in the auto sector.

Exports of aluminium ingots have been increasing on a y-o-y basis, 21% from FY 2014-15 to FY 2015-16 and 52% from FY 2015-16 to FY 2016-17.

Aluminium plays a major role in the modern world through its innumerable applications, because of its intrinsic and versatile properties of lightness, strength to weight ratio, corrosion resistance, electrical and thermal conductivity, nontoxicity etc. Secondary Aluminum Production is the process of recycling aluminum scrap into aluminum that can be used again—an environmentally sound process that is 92 percent more energy efficient than primary production. In fact, aluminium scrap recycling has proven so valuable—both economically and ecologically—that recovery and recycling has become its own industry, and a highly successful one.

The aluminum industry works hard to encourage consumer recycling by educating the public and advocating for the expansion of municipal recycling programs. The recycling of aluminium generally produces significant cost savings over the production of new aluminium, even when the cost of collection, separation and recycling are taken into account. Over the long term, even larger national savings are made when the reduction in the capital costs associated with landfills, mines, and international shipping of raw aluminium are considered.

The Indian Aluminium industry’s enthusiasm to grow smelting capacity on an ambitious scale here and abroad. Aluminium industry in India is moving towards overcapacity, since supply is likely to grow in excess of demand going forward. Demand for aluminium is estimated to grow at 4 to 6% per annum. The demand for the metal is expected to pick up as the scenario improves for user industries like power, infrastructure and transportation, which are all on the move. From around 1.6 mn tonne of demand in 2013-14, the demand by end 2019-20 is expected to touch a near 2.4 mn tonne, and is projected at close to 3.4 mn tonne by 2024-25.

Cost Estimation:

Capacity:                                 25 MT/Day

Plant and Machinery:              200 Lakhs

Working Capital:                      1500 Lakhs

Rate of Return (ROR):              58%

Break Even Point (BEP):          30%

Cost of Project:                         1800 Lakhs

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