Copper demand is on track to double from 2022 to 2035, driven by the transition to a lower-carbon economy. Copper is crucial for electrifying the transportation sector and producing renewable energy.
To keep the energy transition going, millions of feet of copper wiring will be required to strengthen the world’s power grids, and hundreds of thousands of tonnes more are needed to build wind and solar farms.
Copper demand in India is expected to grow due to the increased thrust of the Government of India towards the "Make in India" and "Smart City" program, Atmanirbhar Bharat in Defence, net zero emissions by 2070, PLI schemes for the Consumer electronics industry, accelerated growth for Electric Vehicles, etc. All these aspects are driving the demand for copper in the country.
India stands among one of the biggest exporters of copper. Globally, India is included among the top 20 largest producers of copper. Madhya Pradesh contributes the most, around 55% of the country’s total production and manufacture
This outlook bodes well for the copper industry. It suggests that copper prices could be much higher in the coming years. Here’s a closer look at some of the top copper stocks that could benefit from the transition:
Hindustan Copper Ltd - Hindustan Copper Ltd. is a central public sector undertaking under the ownership of the Ministry of Mines, Government of India. HCL is the only vertically integrated government-owned copper producer in India engaged in a wide spectrum of activities ranging from mining, beneficiation, smelting, refining, and continuous cast rod manufacturing.
Hindalco: It is a subsidiary of Aditya Birla Group and is one of India’s major copper manufacturers. It is known for having the largest smelter in the world. The company specializes in producing copper cathodes and caste copper rods.
Bhagyanagar India Ltd: it is the oldest copper manufacturer in India, being established in 1985. They have globally been an eminent manufacturer of copper products. They have broadened their production to telecom equipment, real estate, and solar products. Their principal goods are sheets, push bars, strips, pipes, rods, and busbars.
Madhav Copper Ltd: The company offers a range of copper busbars, copper rods, profiles, copper fabricated products, enameled copper wire, paper-covered copper conductors, bare copper wire, and copper strips for applications in pumps, motors, transformers, generators, etc.
ABC Gas International: It is a significant producer of copper and pipe gas becoming one of the biggest copper companies in India. The company has acquired clients like Blue Star, BHEL, and Volta. Copper sheets, pipes, busbars, plates, and other items are produced by this company.
Baroda Extrusion Limited, Rachna Metal Industries Pvt Ltd, Jhagaria Copper Ltd (SWIL), Vedanta, Gravita India, Bharat Wire Rop, Ram Ratna Wires, etc. are some other copper stocks that the investors can keep an eye on.
Despite a major slowdown of India’s exports of copper because of various reasons, the demand for copper in India as well as the entire world is not likely to end in the near future, owing to the much anticipated green transition.
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