Hindustan Copper Ltd, a leading Indian copper producer, expects copper demand in the country to grow significantly in the coming years, driven by several key sectors. This growth is predicted to outpace global demand due to India’s lower per capita copper consumption compared to the world average.
The Indian copper market is poised for double-digit growth in the short term, fuelled by the expansion of renewable energy, electric vehicles (EVs), infrastructure, and building & construction sectors. Analysts predict a similar growth trajectory for the copper industry itself. This optimistic outlook is based on the anticipated rise in urbanisation and the increasing adoption of clean energy and electric mobility solutions in India.
Hindustan Copper identified several sectors that will be instrumental in driving copper demand in India. These include:
Renewable energy & infrastructure: The growing focus on clean energy sources like solar and wind power will necessitate more copper for electrical equipment and transmission infrastructure.
EV & transportation: The burgeoning electric vehicle industry will significantly increase copper consumption due to its extensive use in electric vehicle motors, wiring, and charging stations.
Building & Construction: The ongoing infrastructure development and rapid urbanization will continue to propel demand for copper in construction activities.
Hindustan Copper anticipates additional copper production from its Eastern sector mines during the current financial year. The company is continuously investing in mine expansion projects, with a capex target of Rs 350 crore this year. HCL has also exceeded its capex targets in previous years, indicating a strong commitment to growth. Additionally, the company has floated a tender to appoint a Mine Development Operator (MDO) for its Rakha Mine. Finalization of this tender is expected to pave the way for significant fresh investments in this eastern sector mine, further bolstering HCL’s production capacity.
India’s current per capita refined copper consumption is significantly lower than the global average. With a national average of around 0.5 kg per capita compared to the global average of 3.2 kg, India has immense room for growth. Given India’s aggressive development plans and projected double-digit growth, the country’s copper demand is well-positioned to outpace global demand in the coming years.
Hindustan Copper’s expansion strategy and India’s favourable market outlook suggest a promising future for the domestic copper industry. As the country strives for clean energy adoption, infrastructure development, and technological advancements, copper will likely remain a critical material for sustainable progress.
Shares of the company are currently trading at Rs 329.85, down 1.20% from the previous day’s closing price of Rs 333.85. The shares have delivered 176% over the past year and a remarkable 768.55% over the past five years.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.
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