In this interview, Mr Kunal Bajaj outlines a clear roadmap for scaling India’s aluminium foil ecosystem through backward integration, capacity expansion and global market alignment. He highlights how the integration of JUPALCO and LSKB Aluminium Foils is enhancing supply chain control, cost efficiency and product quality. Bajaj also mentions industry shifts like the growing demand for lightweight and high-performance aluminium applications and the rising importance of sustainability and circularity. Focusing on these, the group aims to strengthen India’s role in the global aluminium value chain.

Mr Kunal Bajaj is a second-generation entrepreneur and Director at Jupiter Group, where he plays a key role in driving growth across its aluminium and flexible packaging businesses. With an academic grounding in business and management, he brings a structured and analytical approach to scaling operations. He focuses on building technology-led, integrated manufacturing systems that deliver efficiency, quality and consistency. Under his leadership, the Group continues to strengthen its capabilities across supply chain, product innovation and market expansion. Representing a new generation of Indian manufacturing leaders, he is committed to building a future-ready, globally competitive industrial enterprise.

AL Circle: Starting with JUPALCO, what are the current capacities for producing aluminium stock and flat-rolled products, and how do you see demand for these products evolving across packaging, industrial and consumer segments?

Kunal Bajaj: At JUPALCO, our capacity strategy is anchored in scalability and long-term market alignment. We currently operate at around 60,000 tonnes per annum, with a clear roadmap to expand to 120,000 tonnes in Phase II by late 2026 or early 2027. This positions us to participate meaningfully in both domestic growth and global supply chains. Demand across our portfolio remains structurally strong and well-diversified.

In foil stock, India has emerged as a competitive global supplier, supported by investments in wider mills and a maturing downstream ecosystem. Indian foil today services key international markets, including the US, Europe, Africa, and the Americas, creating sustained demand for high-quality upstream stock.

In flat-rolled products (FRP), growth is being driven by domestic consumption trends. India’s air-conditioner penetration remains around 5 per cent, indicating significant headroom. Even a modest increase in penetration levels has a multiplier effect on demand for aluminium-intensive applications such as HVAC systems and heat exchangers, supported by improving affordability.

At the same time, aluminium continues to gain share across construction, transportation, and industrial applications, driven by its lightweight, durability, and lifecycle efficiency advantages. This trend is particularly visible in global markets, where substitution from traditional materials to aluminium is accelerating.

Overall, the FRP segment is growing at a steady CAGR of approximately 4–4.5 per cent, while foil remains closely linked to global trade dynamics.

Our focus remains on disciplined capacity expansion, consistent quality, and application-led product development, ensuring we are well-positioned to capture growth across both domestic and international markets.

AL Circle: LSKB Aluminium Foils has positioned itself strongly in pharmaceutical and FMCG packaging. What percentage of your current revenue comes from pharma-grade foils, and how has this mix changed over the past three years?

Kunal Bajaj: At LSKB, our portfolio is consciously diversified across FMCG, pharmaceutical, and consumer packaging, with each segment playing a distinct strategic role.

Currently, about 65 per cent of our revenue is driven by FMCG packaging, reflecting scale and consistency in high-volume applications. Pharmaceutical-grade foils contribute approximately 15 per cent, while the balance around 20 per cent comes from household foils and semi-rigid containers under our Homefoil portfolio.

While FMCG remains the dominant volume driver, pharmaceutical packaging is a high-precision, high-entry-barrier segment, where our focus has been on quality, consistency, and technical compliance. Over the past three years, we have strengthened our capabilities in this space through process control, product reliability, and alignment with global packaging standards, positioning us for calibrated growth.

A key area of innovation across both FMCG and pharma has been material optimisation through downgauging. We have successfully reduced foil thickness from 7–9 microns to nearly 5.3–6 microns, without compromising barrier performance. This not only improves cost efficiency but also supports customers’ sustainability and material reduction goals, which are becoming increasingly critical across regulated and non-regulated segments. In parallel, our consumer-facing Homefoil brand has expanded our presence in retail and e-commerce channels, strengthening downstream integration and brand visibility. Overall, while the revenue mix has remained relatively stable, the quality of business, particularly in pharma and value-added applications, has seen consistent improvement, and this continues to be a key focus area for us going forward.

AL Circle: Can you detail your present installed capacity across light gauge, blister and speciality foils, and outline any debottlenecking or brownfield expansion plans underway or planned for the next 24 months?

Kunal Bajaj: At present, LSKB operates with an installed capacity of approximately 24,000 tonnes per annum, with production largely oriented towards ultra-light gauge and high-precision speciality foils, including blister and FMCG applications.

It is important to contextualise that capacity utilisation in this segment is not merely a function of tonnage, but of process complexity and precision requirements. Ultra-light gauge foils, by their very nature, demand tighter tolerances, multiple quality checkpoints, and controlled rolling speeds factors that inherently moderate output volumes compared to heavier gauges.

From a strategic standpoint, our expansion roadmap is both phased and calibrated to market signals. Over the next 24–30 months, we are undertaking brownfield capacity augmentation, with new rolling mills already planned for installation. This will enable us to scale to 48,000 tonnes per annum (approx.) in the first phase, with commissioning of the next line expected within the coming year. Beyond this, we have a clear medium-term vision to reach almost 72,000 tonnes annually, positioning LSKB as a significant contributor to India’s growing aluminium foil ecosystem.

This expansion is underpinned by two structural tailwinds. First, the increasing global realignment of supply chains, where India is emerging as a credible China+1 manufacturing base. Second, a more supportive domestic policy environment, which has helped narrow historical cost disadvantages against subsidised imports. Taken together, our capacity strategy is not just about scale, but about building a globally competitive, quality-led manufacturing base, capable of serving both.

AL Circle: How exposed is LSKB to aluminium price volatility, and what mechanisms, pricing pass-throughs, contracts or hedging, do you use to protect margins?  

Kunal Bajaj: At LSKB, aluminium price volatility is a structural reality of the business, given its direct linkage to London Metal Exchange (LME) Aluminium benchmarks. However, our approach is not reactive—we have built systems and strategies to manage this volatility in a disciplined manner.

We follow a calibrated hedging strategy across both procurement and sales. The objective is to maintain price stability, protect margins, and avoid sudden fluctuations impacting our operations. Through derivative contracts, we lock in a portion of our metal exposure, ensuring predictability in raw material costs and better working capital management.

At the same time, our approach remains pragmatic. In periods of strong upward momentum for instance, when prices move from USD 3,000 to USD 3,300 per tonne there is often a natural caution in immediately locking positions, as markets may continue to trend upward. This is where experience and market understanding play a critical role in determining the extent and timing of hedging.

Operationally, we typically work with three- to six-month hedging cycles, while certain supplier or customer contracts may extend to quarterly or annual structures. This allows us to maintain a balanced view between risk mitigation and market participation.

Equally important is our pricing mechanism. Across JUPALCO and LSKB, we largely operate on LME-linked pricing models, where aluminium costs are passed through based on average pricing monthly or quarterly rather than fixed rates. For instance, a February dispatch may be benchmarked to the average LME price of the previous month. This averaging approach creates a fair and transparent system that protects both our customers and us from extreme volatility.

In essence, while aluminium prices are external and subject to market movements, our approach focuses on managing this through disciplined hedging, structured contracts, and LME-linked pricing. This helps us maintain stability in margins while ensuring consistency and transparency for our customers.

AL Circle: On the other hand, how does JUPALCO’s product portfolio complement LSKB’s downstream foil business, and what strategic advantages does this integration provide in terms of cost, quality and reliability of feedstock?

Kunal Bajaj: The decision to establish JUPALCO was driven by very practical supply-chain challenges we were facing at LSKB.

Historically, we were dependent on imports, particularly from China, for specialised alloys such as 8021 and 8006, as well as for wider coils up to 2.1 metres, which were not readily available in India. While the quality was consistent, the model came with inherent constraints—100 per cent advance payments, lead times extending up to four months, and significant working capital lock-in. This, in turn, limited our operational flexibility and ability to scale efficiently.

JUPALCO was therefore a strategic backward integration to address these gaps. By bringing foil stock manufacturing in-house, we have significantly improved control over our supply chain.

Today, we are able to reduce lead times to approximately 20 days, which has a direct impact on responsiveness to market demand. More importantly, this integration ensures consistency in quality, better cost control, and reliability of feedstock—critical factors in a precision-driven business like that of aluminium foil.

From a strategic standpoint, the JUPALCO–LSKB integration strengthens our ability to serve customers with greater agility, while also improving capital efficiency and reducing external dependencies.

AL Circle: Sustainability is increasingly shaping packaging choices. Where does aluminium foil stand in your sustainability roadmap, particularly in terms of recyclability, energy use and compliance with global standards?

Kunal Bajaj: Sustainability in aluminium packaging has to be seen in the context of circularity. Ideally, aluminium strip packs should be recycled and reused to manufacture new strip packs, preserving the value of the base material.

A simple way to understand this is through PET bottle recycling. Used bottles are collected, processed and converted back into new bottles, creating a closed loop where the material continues to retain its value.

In flexible packaging, aluminium foil may face competition in the future from mono-material plastic structures, particularly in FMCG applications. Many companies in the US and other markets are shifting toward single-polymer structures such as polypropylene or polyethene, which are easier to recycle.

If aluminium is used in such packaging, it is often in metallised form, where a very thin aluminium layer is deposited on plastic films. This provides barrier properties while keeping aluminium usage extremely low.

However, aluminium foil remains irreplaceable in several applications, particularly in pharmaceutical packaging. Capsules, powders and tablets often require very strong barrier protection due to their sensitivity to moisture and oxygen. For these applications, aluminium foil will continue to play a crucial role over the next 10-15 years.

At LSKB and JUPALCO, sustainability initiatives begin with energy transition. By 2030, we aim to meet around 60 per cent of our energy requirements through green energy sources, including solar and hydro power.

Sustainability also involves broader operational practices. We have engaged external consultants to support our sustainability roadmap, focusing on biodiversity protection, carbon-emission reduction and responsible sourcing.

For example, we prioritise green aluminium ingots, encourage employees to transition to electric vehicles, and promote the use of recycled office materials wherever possible.

Another important target is achieving zero discharge and zero landfill waste. Within our internal ecosystem, aluminium scrap generated by LSKB is recycled through JUPALCO to produce foil stock again. This allows us to reuse nearly all production waste.

Export markets, particularly Europe, also require strict sustainability reporting through mechanisms such as CBAM (Carbon Border Adjustment Mechanism).

While downstream operations like rolling and casting can reduce emissions significantly, a large portion of carbon intensity still originates from primary aluminium production, where coal-based power remains dominant globally.

Therefore, long-term sustainability will depend on expanding renewable energy usage across the entire supply chain, not just within downstream operations.

Overall, sustainability is an ongoing journey. At LSKB and JUPALCO we are committed to improving efficiency, increasing recycled aluminium usage and progressing toward net-zero emissions and zero landfill waste.

AL Circle: What share of your sales is export-driven today, which regions are priority markets, and how competitive is India as a foil-manufacturing base compared with China and Southeast Asia?

Kunal Bajaj: Currently, around 40 per cent of LSKB’s production is export-oriented. Our major export destinations include the United States, Europe and Canada.

Indian aluminium foil is highly competitive in global markets. Many regions have already imposed anti-dumping or anti-subsidy duties on Chinese foil, recognising that domestic industries cannot always compete with China’s pricing structures.

As a result, Indian suppliers have gained stronger market access in several countries.

Going forward, the US, Europe and Canada will remain our primary export markets. Strengthening trade relations between India and these regions could further support growth.

For instance, recent developments in trade negotiations between India and the US indicate a positive direction for bilateral trade, even though aluminium is not yet fully included in those agreements.

In the long term, I do not see China as a major threat in certain markets due to regulatory barriers. Other Southeast Asian countries also have limited capacities, with Korea being one of the few exceptions. However, production costs in Korea are often equal to or higher than those in India.

Therefore, India remains highly competitive globally, and LSKB aims to play a significant role in expanding the country’s aluminium foil exports.

AL Circle: Have you seen any structural shift in customer demand, thinner gauges, higher barrier properties, or specialised coatings over the last two years?

Kunal Bajaj: Yes, we have seen several structural shifts in customer requirements.

Packaging is a significant cost component for FMCG and pharmaceutical companies, and many customers are seeking ways to reduce costs through thinner foil gauges.

Where earlier gauges were 7 or 9 microns, we have helped customers reduce them to 6 microns or even 5.3 microns without compromising barrier properties. LSKB is among the first manufacturers in India to produce 5.3-micron and even 4.5-micron aluminium foil.

These products have become key offerings in our portfolio and are supported by foil stock produced at JUPALCO.

Another area of improvement is pin-hole control. Reducing both the number and diameter of pinholes improves barrier performance while enabling thinner gauges.

In terms of coatings and printing, the Indian market is still evolving. Traditionally, packaging used nitrocellulose-based inks, but many customers are now shifting toward nitrocellulose-free inks, particularly in pharmaceutical packaging.

Similarly, conventional solvent-based sealant coatings (VMCH) used in pharmaceutical packs are gradually being replaced by water-based heat-seal coatings.

However, many of these innovations increase manufacturing costs. The challenge is whether the domestic market is willing to absorb those additional costs.

India remains largely a volume-driven market, where cost sensitivity is high. Still, given the margins in pharmaceutical products, there is potential for companies to adopt more advanced packaging solutions.

So, while structural changes are happening, the pace of adoption will depend on how customers balance performance improvements with cost considerations.

AL Circle: Looking ahead three to five years, what does scale mean for LSKB, in terms of capacity expansion, product diversification, deeper pharma integration, or geographic reach?

Kunal Bajaj: Over the next three to five years, our vision is clear. At Jupiter Group, which includes JUPALCO and LSKB Aluminium Foils, we aim to position India as a leading global supplier of aluminium foil and related products.

Today our primary focus is aluminium foil, containers and coated products. However, backward integration through JUPALCO’s continuous casting operations allows us to supply flat-rolled products to multiple industries, including construction, electrical and HVAC sectors.

This significantly expands the group’s market reach because ultimately, we are supplying aluminium products across diverse applications.

Capacity expansion is a major part of this strategy. JUPALCO plans to scale from 60,000 tonnes to 120,000 tonnes annually, while LSKB is targeting growth from 24,000 tonnes to about 72,000 tonnes.

As capacity increases, we will also expand our geographic presence and explore new export markets.

Product diversification will be equally important. JUPALCO is evaluating the possibility of setting up a DC hot rolling mill, which would enable the production of alloys that cannot be manufactured through continuous casting. Looking ahead, the group aims to reach close to 200,000 tonnes of aluminium product supply annually within the next three to five years.

With this scale, our global market presence will expand significantly, and the diversity of our product portfolio will grow well beyond what we offer today.

Our long-term vision is clear to strengthen India’s position in the global aluminium value chain while expanding the Jupiter Group’s role in the international market.