Aluminium (Al) is the third most abundant element in the earth's crust and constitutes 7.3% by mass. It has become the world’s second most used metal after steel. It does not rust and is 100 percent recyclable. The metal has a long working life due to its propensity for recycling. Aluminium ore, most commonly bauxite, is plentiful and occurs mainly in tropical and sub-tropical areas - Africa, West Indies, South America and Australia - with some deposits in Europe.

China alone accounts for 29 percent of global primary aluminum production. Russia, Canada, the USA, Australia, Brazil, Norway and India are the principal producing countries after China. These countries account for about three quarters of world output of primary aluminium. Asia accounts for 44 percent of the global aluminium production in 2008. USA is a net exporter for aluminium. Canada and Russia account for almost three-fourths of total imports.

India ranks sixth in alumina production, eighth in aluminium production and fifth in aluminium consumption in the world. The country has the fifth largest bauxite reserves with deposits of about 3 bn tonnes or 5% of world deposits. The per capita consumption of aluminium in India is abysmally low at 0.8 kg as against 25 kg in USA, 19 kg in Japan, 10 kg in Europe and 3 kg in China. The Aluminium industry is highly concentrated, with just five plants accounting for the entire production capacity of around 1.2 million tonnes per annum.