"The completion of ongoing consolidation and capacity expansions could lead to emergence of one or two very strong players in the domestic market and help reduce the competitive pressures and irrational price undertaking, Crisil said in its latest review of the aluminium industry.

Domestic players are likely to maintain favourable financial health with globally competitive cost structure and comfortable price trends on the London Metal Exchange (LME), it said. Power costs for Indian players, including Hindalco Ltd, State-owned Nalco and Sterlite group company's Malco with captive electricity plants, are competitive, with power bills just one third of total production cost, the report said.

(PTI)