a day ago
‘Karnataka's aluminium extrusion industry hit by global headwinds, including 50% tariff imposed by Trump'
The aluminium extrusion industry in Karnataka is concerned about global headwinds, including volatility in raw material prices, high energy costs, and the recently announced 50% tariff by the U.S administration, according to Jitendra Chopra, President, Aluminium Extrusion Manufacturers Association of India (ALEMAI).
Aluminium extrusion is a manufacturing process where melted aluminium alloy is forced through a die to make hard aluminium in various sizes, shapes and lengths for the consumption of diverse industries.
Addressing a press conference in Bengaluru on August 18, Mr. Chopra said, 'Karnataka, being a strategic location, has emerged as a key growth engine of India's aluminium extrusion industry with an individual production contribution of over 10%, thanks to its rapid industrial growth, strong export potential and a thriving manufacturing base. However global headwinds were impacting the prospects of the sector and industry players here are worried that these would impact the export competitiveness of the sector.'
According to him, other than the tariff burden, what is hurting the industry is under-utilization of domestic manufacturing capacity due to cheap imports.
'The high tariffs by the U.S are a challenge, but a bigger challenge is the under-utilisation of domestic manufacturing capacity due to cheap imports. The total installed aluminium extrusion capacity in India is 3.5 million tonnes per annum, but the utilisation is only around 2 million tonnes, with the remaining 1.5 million tonnes imported,' he said.
He also cited a need to put in place safeguards in Free Trade Agreements (FTAs) with Far East countries and other nations to revive domestic units.
Mr. Chopra said aluminium extrusion is a fast-growing sector in Karnataka. While Bengaluru-based Jindal Aluminium Limited (JAL) remains India's largest aluminium extrusion company, Hindalco and Bhoruka Group also have manufacturing facilities in the City.. Moreover, there are hundreds of MSMEs and small-sized aluminium extrusion manufacturing facilities catering to construction, electric mobility, aerospace, renewable energy, and consumer durables.
The push from government-led initiatives, like the Smart Cities Mission, affordable housing schemes, and clean energy programmes, is fuelling sustained growth in aluminium extrusion output and consumption, he stated adding, 'Karnataka is rapidly becoming a hub for aluminium extrusion with its unique advantages of manufacturing strength, technology, and export potential. The State plays a critical role in meeting India's domestic demand as well as exports, and holds immense strategic value for the industry.''
India's aluminium extrusion market stood at $3.51 billion in 2024, and is projected to reach $4.61 billion by 2030, growing at a CAGR of 4.5%. While north India remains the dominant market, growth in the southern region is led Karnataka, according to ALEMAI, that represents over 200 industry players.
Karnataka accounts for over 10% of India's total production of 1,079,875 metric tons. Jindal is a major contributor, producing approximately 12,000 tonnes per month.
The industry body in association with Hindalco, Vedanta, JNARDDC, an autonomous body under the Ministry of Mines, and the Ministry of MSMEs, is scheduled to hold a four-day aluminium extrusion exposition, ALUMEX India 2025, in New Delhi between September 10 and 13.
ALUMEX India 2025 will address challenges facing the aluminium extrusion sector through sessions on technology localisation, green extrusion practices, government support for MSMEs, and emerging global trends. It will facilitate innovation and the adoption of sustainable practices, in addition to business matchmaking and buyer-seller meets, to enable strategic partnerships and drive investment across the value chain.
