Aluminium Extrusions Manufacturers Association of India (ALEMAI) has warned that the strained fuel supply, with rising energy prices, is weighing on key industrial units as they run below capacity. Consequently, these challenges are taking a toll on the micro, small and medium enterprises (MSMEs), the fundamental players in the Indian aluminium extrusion industry.  

Explore- Most accurate data to drive business decisions with Global ALuminium Industry Outlook 2026 across the value chain 

Owing to the ever-inflating prices of energy-intensive operations, manufacturers in Ahmedabad, Bengaluru and Pune have reported an output slowdown. As aluminium extrusion generally depends on gas-powered high-temperature furnaces, it is exposed to volatile fuel prices and supply uncertainties.

Industry participants are apprehensive that fluctuations in gas pressure and short-term supply disruptions can have adverse impacts on production efficiency. They would contribute to increasing operational costs while affecting the product quality.

Additionally, with the conclusion of FY26, MSMEs grapple with tightening liquidity and mounting debt servicing pressures.

To mitigate short-term financial strain and avoid broader challenges, industry bodies have asked for policy support with improved access to working capital, temporary financial relief measures, and help firms maintain credit ratings during periods of stress.  

Don't miss out- Buyers are looking for your products on our B2B platform

Downstream hangs by the energy thread

Aluminium extrusion plays a major role in providing structural fittings in construction, vehicle components in automotive and solar panel frames in renewable energy. Production slowdown in this segment could have ripple effects across important industrial sectors, compromising cost structures, project timelines and supply chains.

Global fuel price trends, domestic supply conditions and such broader energy market dynamics continue to shape the sector in India.

Although no official policy exists for mandating diversion of gas supplies from industry to households, stakeholders emphasise the challenge of managing demand tussles across sectors.

In this scenario, energy availability and pricing are the main factors controlling short-term production stability. 

Trading aluminium across borders? Find out the exact cost you need to bear for the embedded carbon in the product by using this CBAM calculator.

Image for referential purposes only