Archive · 25 Sep 2026
India’s Aluminium Extrusion Industry Targets Growth Despite Financing Pressures
India’s aluminium extrusion companies make products used in construction, electric vehicles, renewable energy and other industries.
They expect demand for these products to grow by about 10% each year for five years.
However, many factories are having trouble finding enough money to run their operations.
The prices of raw materials and energy have gone up sharply.
Taxes deducted from payments also keep some money locked away for months.
Imported finished products make it harder for Indian manufacturers to raise their prices.
The industry has enough capacity to make about 3 million tonnes each year, but current production is reported at only 0.8 million tonnes.
The manufacturers want changes to import duties so domestic companies can compete more effectively.
India’s aluminium extrusion industry expects demand to grow about 10% annually over the next five years.
The sector comprises roughly 400 MSME and medium-sized units, generates about Rs. 75,000 crore annually and supports around one million jobs.
Raw-material prices have risen 30%–40% and energy costs about 30% since the Hormuz crisis, increasing working-capital needs.
Manufacturers say 2% TDS and 2% TCS deductions tie up funds for two to three months while businesses continue paying bank interest.
The industry is seeking zero duty on ingots and billets and higher duties on finished aluminium products to improve domestic competitiveness.
- Who
- India’s aluminium extrusion manufacturers, represented by Jitendra Chopra and the Aluminium Extrusion Manufacturers Association of India.
- What
- The industry is forecasting 10% annual demand growth while facing working-capital shortages, higher input costs and import competition.
- When
- Demand is expected to grow over the next five years; cost pressures intensified after the Hormuz crisis.
- Where
- India.
- Why
- Growth is expected from data centres, renewable energy, construction, electric vehicles, semiconductor plants, transmission, electrification and packaging, but manufacturers need financing and greater cost competitiveness.
- Expected demand growth
- About 10% annually over the next five years
- Industry structure
- Around 400 MSME and medium-sized units
- Annual revenue
- About Rs. 75,000 crore
- Current employment
- Around one million jobs
- Installed capacity
- About 3 million tonnes annually
- Reported production
- About 0.8 million tonnes annually
- Cost increases
- Raw materials up about 30%–40%; energy costs up about 30%
- Tax-related cash lock-up
- 2% TDS and 2% TCS deductions can tie up funds for two to three months