Aluminum is one of the most versatile and widely used non-ferrous metals in the world. Its lightweight, corrosion-resistant, and high-strength properties make it an ideal material for construction, transportation, consumer goods, solar panel frames, electronics, and more. One of the most important processes in the aluminum industry is extrusion, which allows the metal to be shaped into complex profiles for countless applications. With rapid urbanization, infrastructure growth, and the electric vehicle boom, the business of aluminum extrusion plant is becoming an increasingly attractive opportunity for entrepreneurs and MSMEs in India.

Aluminum extrusion involves heating aluminum billets and forcing them through a die to create long, uniform profiles like channels, angles, rods, tubes, and custom designs. With growing demand from industries like real estate, automotive, railways, and electronics, starting a business of aluminum extrusion plant offers excellent growth and revenue potential. In this blog, we’ll explain the setup process, machinery, investment, market trends, and profitability of entering this sector.

Visit this Page for More Information: Start a Business in Aluminium Downstream Sector

---

Scope of the Business of Aluminum Extrusion Plant

The global aluminum extrusion market is expected to reach USD 130 billion by 2030, growing at a CAGR of over 6%. In India alone, aluminum consumption is projected to reach 10 million tonnes by 2030, with extrusions making up 25–30% of this usage.

Key Application Sectors:

• Construction and infrastructure

• Renewable energy (solar and wind)

• Automobiles and electric vehicles

• Electrical and electronics

• Consumer products and modular furniture

Starting the business of aluminum extrusion plant gives you access to both B2B and B2C markets with high customization flexibility and growing demand.

Read our Books Here: The Complete Technology Book on Aluminium and Aluminium Products

---

4. Land, Machinery, and Infrastructure

To set up a small-to-medium business of aluminum extrusion plant, you’ll require:

Land:

• Minimum 15,000–25,000 sq. ft. for setup, raw material storage, cooling lines, and handling.

Key Machinery:

• Aluminum extrusion press (600–1800 tons capacity)

• Billet heating furnace

• Die ovens and dies

• Cooling tables and pullers

• Profile stretcher and cutting saws

• Anodizing plant or powder coating (optional)

• Material handling and packaging system

Cost of Machinery: ?2 crore – ?6 crore depending on capacity (1000–3000 tons/year)

Related Feasibility Study Reports: Aluminium Extrusion – Manufacturing Plant

---

5. Licensing and Compliance

Legal and regulatory requirements include:

• Udyam/MSME Registration

• Factory License

• Pollution Control Board Clearance

• Fire Safety Certificate

• GST Registration

• Import License (if importing billets/dies)

• ISO Certification (for quality compliance)

---

6. Investment and Working Capital

Total Startup Investment: ?4 crore to ?10 crore depending on production scale and automation.

---

7. Revenue Model and Profit Margins

• Selling Price of Extrusions: ?250 to ?400 per kg depending on product and finishing

• Monthly Output (small plant): 60–100 tons

• Monthly Revenue: ?1.5 crore to ?3 crore

• Profit Margin: 10% to 18% (after material and operational costs)

Custom dies and architectural profiles fetch premium rates.

---

8. Sales Channels and Marketing

• B2B clients: Real estate developers, solar EPC companies, vehicle manufacturers

• Architectural and Modular Suppliers

• Government infrastructure and defense contracts

• Industrial Distributors and online platforms like IndiaMART

• Export markets: Middle East, Africa, and South-East Asia

Marketing Tip: Offer value-added services like custom design, powder coating, and just-in-time delivery to build long-term clients.

---

9. Government Support & Subsidies

• PLI Scheme for Metals & Components

• Technology Upgradation Fund (TUFS)

• State Capital Subsidy Schemes

• Duty Drawbacks & RoDTEP for Exporters

• PMEGP and CGTMSE schemes for financing support

---

10. Challenges and Solutions

---

Why Start the Business of Aluminum Extrusion Plant?

• Consistent demand from high-growth sectors
• High scalability and customization
• Multiple product applications
• Export potential
• Government support for aluminum sector MSMEs

---

Final Thoughts

The business of aluminum extrusion plant is a capital-intensive but rewarding venture, especially for those targeting niche markets, fast delivery, and quality customization. As India focuses on infrastructure, sustainability, and manufacturing, aluminum extrusion will play a central role in multiple industries. With the right setup, skilled manpower, and a strong marketing approach, entrepreneurs can establish a high-growth enterprise with excellent return potential.

Click here to send your queries/Contact Us

Reasons for Buying NIIR Report:

• Our research report helps you get a detailed picture of the industry by providing an overview of the industry along with the market structure and classification.
• Our report provides market analysis covering major growth driving factors for the industry, the latest market trends and the regulatory framework of the industry.
• Our Report provides an analysis and in-depth financial comparison of major Players / Competitors.
• Our Report provides indispensable buyers’ data with their company financials as well as the contact details, which can be an important tool in identifying the target customers.
• Our report provides forecasts of key parameters which help to anticipate the industry performance.
• We use reliable sources of information and databases. And information from such sources is processed by us and included in the report.

See More Links:

• Start a Business in Asia
• Start a Business in Potential Countries for Doing Business
• Best Industry for Doing Business
• Business Ideas with Low, Medium & High Investment
• Looking for Most Demandable Business Ideas for Startups
• Startup Consulting Services
• Start a Business in Africa
• Start a Business in India
• Start a Business in Middle East
• Related Videos
• Related Books
• Related Projects
• Related Market Research Reports

---

1. Market Demand and Industry Overview

Aluminum extrusions are used in:

• Doors, windows, curtain walls (construction)

• Heat sinks, LED housings (electronics)

• Vehicle frames, battery enclosures (automotive)

• Railway coaches and metro panels

• Solar panel frames and mounts

India is home to top extrusion brands like Jindal, Hindalco, Banco, and Century Extrusions. But MSMEs have growing opportunities in Tier 2 and Tier 3 cities, modular housing, and EV supply chains.

Related Business Plan: Aluminium and Aluminium Downstream Projects

---

2. Raw Materials Required

The key raw material for the business of aluminum extrusion plant is:

• Aluminum Billets or Ingots – 6063, 6061, and 6005 grades are commonly used

• Lubricants and Dies – for smooth extrusion and shaping

• Anodizing Chemicals – for surface treatment and finishing (optional)

Sourcing: Hindalco, Vedanta, NALCO, and other primary aluminum producers in India supply extrusion-grade billets.

Read Similar Articles: ALUMINIUM PRODUCTS PROJECT

---

3. Aluminum Extrusion Manufacturing Process

1. Heating: Aluminum billet is preheated to 400–500°C

2. Extrusion: Heated billet is pushed through a steel die using hydraulic pressure

3. Cooling: Extruded profile is rapidly cooled with air or water

4. Stretching: Profiles are stretched to straighten and align the grain structure

5. Cutting: Profiles are cut into standard or custom lengths

6. Finishing: Includes anodizing, powder coating, or fabrication (as per order)

Advanced plants may include automatic handling systems, computerized control, and inline finishing.

Watch other Informative Videos: Aluminium and Aluminium Downstream Projects

---

4. Land, Machinery, and Infrastructure

To set up a small-to-medium business of aluminum extrusion plant, you’ll require:

Land:

• Minimum 15,000–25,000 sq. ft. for setup, raw material storage, cooling lines, and handling.

Key Machinery:

• Aluminum extrusion press (600–1800 tons capacity)

• Billet heating furnace

• Die ovens and dies

• Cooling tables and pullers

• Profile stretcher and cutting saws

• Anodizing plant or powder coating (optional)

• Material handling and packaging system

Cost of Machinery: ?2 crore – ?6 crore depending on capacity (1000–3000 tons/year)

Related Feasibility Study Reports: Aluminium Extrusion – Manufacturing Plant

---

5. Licensing and Compliance

Legal and regulatory requirements include:

• Udyam/MSME Registration

• Factory License

• Pollution Control Board Clearance

• Fire Safety Certificate

• GST Registration

• Import License (if importing billets/dies)

• ISO Certification (for quality compliance)

---

6. Investment and Working Capital

Total Startup Investment: ?4 crore to ?10 crore depending on production scale and automation.

---

7. Revenue Model and Profit Margins

• Selling Price of Extrusions: ?250 to ?400 per kg depending on product and finishing

• Monthly Output (small plant): 60–100 tons

• Monthly Revenue: ?1.5 crore to ?3 crore

• Profit Margin: 10% to 18% (after material and operational costs)

Custom dies and architectural profiles fetch premium rates.

---

8. Sales Channels and Marketing

• B2B clients: Real estate developers, solar EPC companies, vehicle manufacturers

• Architectural and Modular Suppliers

• Government infrastructure and defense contracts

• Industrial Distributors and online platforms like IndiaMART

• Export markets: Middle East, Africa, and South-East Asia

Marketing Tip: Offer value-added services like custom design, powder coating, and just-in-time delivery to build long-term clients.

---

9. Government Support & Subsidies

• PLI Scheme for Metals & Components

• Technology Upgradation Fund (TUFS)

• State Capital Subsidy Schemes

• Duty Drawbacks & RoDTEP for Exporters

• PMEGP and CGTMSE schemes for financing support

---

10. Challenges and Solutions

---

Why Start the Business of Aluminum Extrusion Plant?

• Consistent demand from high-growth sectors
• High scalability and customization
• Multiple product applications
• Export potential
• Government support for aluminum sector MSMEs

---

Final Thoughts

The business of aluminum extrusion plant is a capital-intensive but rewarding venture, especially for those targeting niche markets, fast delivery, and quality customization. As India focuses on infrastructure, sustainability, and manufacturing, aluminum extrusion will play a central role in multiple industries. With the right setup, skilled manpower, and a strong marketing approach, entrepreneurs can establish a high-growth enterprise with excellent return potential.

Click here to send your queries/Contact Us

Reasons for Buying NIIR Report:

• Our research report helps you get a detailed picture of the industry by providing an overview of the industry along with the market structure and classification.
• Our report provides market analysis covering major growth driving factors for the industry, the latest market trends and the regulatory framework of the industry.
• Our Report provides an analysis and in-depth financial comparison of major Players / Competitors.
• Our Report provides indispensable buyers’ data with their company financials as well as the contact details, which can be an important tool in identifying the target customers.
• Our report provides forecasts of key parameters which help to anticipate the industry performance.
• We use reliable sources of information and databases. And information from such sources is processed by us and included in the report.

See More Links:

• Start a Business in Asia
• Start a Business in Potential Countries for Doing Business
• Best Industry for Doing Business
• Business Ideas with Low, Medium & High Investment
• Looking for Most Demandable Business Ideas for Startups
• Startup Consulting Services
• Start a Business in Africa
• Start a Business in India
• Start a Business in Middle East
• Related Videos
• Related Books
• Related Projects
• Related Market Research Reports