Gujarat's Aluminium Extrusion Industry in Dire Straits, Calls for Government Lifeline
Aluminium extrusion manufacturers in Gujarat have issued an urgent plea to the government, demanding an immediate extension of a moratorium and other critical financial relief measures. The industry is grappling with an unprecedented crisis, primarily driven by disrupted industrial gas supply, plummeting production levels, and a steep surge in aluminium scrap prices, all exacerbated by the ongoing geopolitical tensions in West Asia.
Severe Production Downturn and Capacity Underutilization
Gujarat is home to nearly 100 aluminium extrusion units, boasting a collective installed capacity of approximately 50,000 tonnes per month. However, industry representatives report a sharp deterioration in operational conditions over recent months. The erratic and prohibitively expensive supply of industrial gases, coupled with substantially increased raw material costs, has forced close to 10 units to cease production entirely. Many others are operating at less than half their designed capacity.
According to Jitendra Chopra, President of the Aluminium Extrusion Manufacturers' Association of India (ALEMAI), the situation is critical. "The state's total installed capacity stands at 50,000 tonnes monthly across about 100 units. Due to the geopolitical crisis and severe disruption in industrial gas supply, current production has plummeted to only around 15,000 tonnes," he explained. "Several units have halted manufacturing, while numerous others are functioning just three to four days per week. Regions like Ahmedabad and its vicinity, hosting about 50 units, are among the worst affected. Scrap availability is also severely constrained."
Cascading Impact on Dependent Sectors and Operational Hardships
This supply disruption has triggered a cascading effect on dependent industries, particularly real estate and construction. Prices for aluminium sections used in doors, windows, and structural applications have risen significantly due to reduced production and high-cost inputs, placing additional financial pressure on project budgets and timelines.
Liquefied Petroleum Gas (LPG) and Piped Natural Gas (PNG) are essential fuels for critical manufacturing processes such as melting, heating, and ageing. The association highlighted that restricted allocation and inconsistent delivery have compelled many units to curtail their operations by 30% to 70%, identifying the gas shortage as the primary bottleneck threatening the industry's survival.
Pratik Shah, Director of Avirat Metals Pvt Ltd, shared his company's experience. "We possess a manufacturing capacity of 500 tonnes per month. However, due to a shortage of gas at standard rates, we were forced to shut down one production line for 18 days. The remaining line is currently operating at only half its capacity," he stated, underscoring the widespread operational challenges.
Urgent Appeal for Financial Relief and Support Measures
In a formal representation to the government, ALEMAI emphasized that this capital-intensive sector is facing severe liquidity strain. Units continue to service existing debts despite drastically reduced operations, compounding financial distress. The association has appealed for relief measures similar to those implemented during the COVID-19 pandemic.
Key requested interventions include:
- Lower interest rates on existing loans
- A moratorium on principal and interest repayments
- Deferment of interest liabilities
- Access to affordable short-term working capital backed by government guarantees
- Relaxation in credit bureau (CIBIL) reporting rules to protect ratings
The industry's call to action underscores a critical need for prompt governmental support to stabilize operations, safeguard jobs, and prevent further ripple effects across the broader manufacturing and construction ecosystem in Gujarat.
