Century Extrusions Ltd Management Discussions

Introduction

The aluminium extrusions industry has entered a transformative phase as global trends in sustainability, lightweight engineering, urbanization, and infrastructure modernization drive demand across key end-use sectors. As we move into 2025 and beyond, this sector presents promising opportunities tempered by regional disparities, regulatory evolution, and commodity volatility. Our strategic positioning and adaptive capabilities will play a critical role in navigating this dynamic landscape.

Global economic overview:

The global aluminum extrusion market is experiencing robust growth, driven by several key factors. The expanding global economy, particularly in emerging markets, is fuelling the demand for aluminum extrusions in various industries, including construction, automotive, aerospace and packaging. Additionally, the increasing focus on sustainability is prompting manufacturers to seek aluminum extrusions produced with improved efficiency and reduced environmental impact. In 2024, the market saw a notable increase in demand for recycled aluminum extrusions, reflecting a growing commitment to sustainable practices and reducing reliance on virgin aluminum production. This trend is anticipated to continue into 2025, as manufacturers prioritize circular economy principles and seek to minimize their environmental footprint.

The global economy in 2025 faces significant headwinds, with growth projected at 2.7%, a decline from earlier forecasts of 3.0%. This downturn is primarily attributed to U.S. President Donald Trumps implementation of sweeping tariffs on all imports, including a 145% tariff on Chinese goods. These measures have led to increased trade uncertainty, higher costs, and disrupted business operations worldwide.

Market Size and Growth Outlook

The global aluminum extrusion market is poised for significant growth, with projections indicating an expansion from USD 95.02 billion in 2025 to approximately USD 169.22 billion by 2034, reflecting a compound annual growth rate (CAGR) of 6.64%. This growth trajectory is underpinned by several macroeconomic and sector-specific factors:

• Urbanization and Infrastructure Development: Rapid urbanization, particularly in emerging economies, is driving demand for aluminum extrusions in construction applications and structural frameworks .

• Automotive and Aerospace Advancements: The automotive industrys shift towards lightweight materials, especially in electric vehicles (EVs), is increasing the use of aluminum extrusions to enhance fuel efficiency and performance.

• Sustainability Initiatives: Growing emphasis on sustainable practices is leading to increased utilization of recycled aluminum, with over 35% of aluminum used in extrusions in the Asia Pacific region now sourced from recycled materials .

Key Growth Drivers

a) Sustainability and Circular Economy Trends

Aluminium extrusions are increasingly viewed as a sustainable solution due to their high recyclability. With over 75% of all aluminium ever produced still in use today, stakeholders from architects to automakers are favouring extruded aluminium for its low carbon footprint.

b) Urbanization and Smart Cities

Rapid urbanization in Asia, Africa, and Latin America is accelerating the demand for extruded aluminium profiles in infrastructure, high-rise buildings, and smart city solutions, thanks to their structural integrity and design flexibility.

c) Government Policy and Trade Measures

Regulatory frameworks promoting low-carbon manufacturing and recycling are favouring aluminium producers who embrace ESG principles. However, protectionist trade policies and tariffs in North America and parts of Europe continue to pose supply chain risks.

d) Rise of Electric Mobility

The electric vehicle (EV) revolution continues to be a major catalyst. Aluminium extrusions are used extensively in EV battery housings, crash management systems, and chassis components, enabling weight reduction and energy efficiency.

The aluminum extrusion market is highly competitive, with both large multinational companies and specialized aluminum extrusion manufacturers vying for market share. Key players are employing a variety of strategies to differentiate their offerings, enhance their production capabilities, and secure business. These strategies include:

• Technological Innovation: Companies are investing heavily in research and development to create new and improved extrusion technologies, including high-pressure extrusion, low-pressure extrusion, and precision extrusion. This involves developing new aluminum alloys, improving extrusion processes, and exploring innovative finishing techniques.

• Vertical Integration: Companies are integrating various stages of the production chain, from aluminum sourcing to processing and extrusion, to ensure consistent quality, control costs, and enhance their supply chain.

• Global Expansion: Companies are expanding their geographical presence to capitalize on growing markets in emerging economies and meet the increasing demand for aluminum extrusions.

Regional Market Insights

Asia Pacific: Dominating the global market, the Asia Pacific region accounted for over 74% of the market share in 2024. The regions growth is fuelled by substantial infrastructure projects, government incentives for green building practices, and a burgeoning demand for lightweight materials in automotive and transportation sectors .

North America: The U.S. market is experiencing a shift due to trade policies, such as the imposition of tariffs on aluminum imports. While this has led to increased domestic production, it has also raised costs for consumers, potentially impacting demand in industries like packaging and automotive.

Europe: European producers are adapting to market challenges by focusing on high-quality, low-carbon aluminum products. The European market is focused on high-performance, low-emission solutions. Major players are investing in recycling and low-carbon smelting to align with the EU Green Deal.

Middle East & Africa

An emerging opportunity, where aluminium extrusion is gaining relevance in megaprojects, such as NEOM in Saudi Arabia and smart infrastructure developments in the UAE.

Challenges and Risk Factors

• Commodity price volatility: Price fluctuations in primary aluminium and energy inputs remain a concern.

• Geopolitical disruptions: Regional conflicts and trade restrictions can impact global supply chains and raw material availability.

• Environmental compliance: As regulatory bodies tighten environmental norms, producers must invest in cleaner technologies and lifecycle assessments.

The global aluminum extruded products market is poised for steady growth in 2025, driven by demand from key industries and a shift towards sustainable practices. In India, the market is expanding due to increasing industrialization and government initiatives supporting infrastructure development. However, the broader global economic landscape faces challenges due to trade tensions and policy uncertainties, which may impact market dynamics.

As the year progresses, stakeholders in the aluminum extrusion industry must navigate these challenges while seizing opportunities for growth and innovation. Adaptation to changing market conditions and a commitment to sustainability will be crucial for long-term success.

Aluminum Extruded Products Market Outlook (2025):

Growth Amidst Challenges

The global aluminum extruded products market is expected to reach a size of $48.97 billion in 2025, growing at a compound annual growth rate (CAGR) of 6.1% from 2024. This growth is driven by increased demand from end-use industries such as construction, automotive, and mass transport. The construction industry, in particular, is a significant economic sector that encompasses the construction, repair, renovation, and maintenance of buildings, infrastructure, and engineering projects such as bridges and highways. Aluminum extruded products are widely employed in building construction and manufacturing industries. In India, the aluminum extrusion market reached a volume of 1,079,874.55 tons in 2024. Looking forward, the market is expected to reach 1,526,359.7 tons by 2033, exhibiting a growth rate (CAGR) of 3.72% during 2025-2033. This growth is driven by increasing demand in construction, automotive, and industrial sectors, along with technological advancements, urbanization, and sustainability initiatives.

Business Outlook and Opportunities

To capitalize on the evolving market dynamics, the company is focusing on the following strategic initiatives:

• Expansion into Emerging Markets: Targeting growth opportunities in regions with increasing infrastructure development and demand for sustainable materials.

• Investment in R&D: Enhancing capabilities in developing advanced aluminum alloys and extrusion technologies to meet the specific requirements of key industries.

• Sustainability Initiatives: Strengthening commitments to environmental stewardship by increasing the use of recycled materials and adopting energy-efficient manufacturing processes.

The global aluminum extruded products market is expected to reach a size of $48.97 billion in 2025, growing at a compound annual growth rate (CAGR) of 6.1% from 2024. This growth is driven by increased demand from end-use industries such as construction, automotive, and mass transport. The construction industry, in particular, is a significant economic sector that encompasses the construction, repair, renovation, and maintenance of buildings, infrastructure, and engineering projects such as bridges and highways. Aluminum extruded products are widely employed in building construction and manufacturing industries.

The global aluminium extrusions industry is on a resilient growth trajectory, propelled by sustainability imperatives, technological advancements, and rising global consumption. As economies transition toward greener, lighter, and smarter solutions, aluminium extrusions will remain central to global manufacturing and infrastructure paradigms.

UKRAINE-RUSSIAN WAR IMPACT

1. Overview of the Geopolitical Situation

The ongoing Ukraine–Russia conflict, now entering its fourth year, remains one of the most destabilizing geopolitical events of the 21st century. Although international diplomatic efforts continue, hostilities persist across Eastern Europe, resulting in significant humanitarian, economic, and political fallout. As the war stretches into 2025, its ramifications are being felt far beyond the regions borders, impacting global markets, trade flows, energy security, supply chains, and investor sentiment.

2. Economic and Industrial Impact

a) Impact on Aluminum Prices and Market Volatility

The aluminum market has experienced heightened volatility as a result of the war. Prices have surged due to supply constraints and increased production costs. The uncertainty surrounding the conflict has led to speculative trading, further exacerbating price fluctuations. For aluminum extruders, this volatility presents challenges in cost forecasting and long-term planning, as raw material expenses become less predictable. b) Energy Markets and Input Costs Europes energy landscape has been fundamentally altered. Disruptions in natural gas supply from Russia have prompted a structural shift towards renewables and LNG imports. However, volatility in energy prices continues to affect industrial producers reliant on high energy inputs, particularly in aluminium smelting and manufacturing. Elevated energy tariffs across Europe have led to increased operating costs and margin pressures. c) Commodity Supply Chain Disruptions Ukraine and Russia are key exporters of critical commodities, including aluminium (bauxite/alumina), steel, titanium, neon gas, and agricultural inputs. Trade sanctions on Russian metals, combined with logistical constraints in the Black Sea region, have strained global supply chains. This has resulted in:

• Increased raw material procurement costs.

• Extended lead times and transportation bottlenecks.

• Greater reliance on alternative, often higher-cost, suppliers. d) Inflationary Pressures

The war has amplified global inflationary trends by pushing up energy, food, and freight costs. These rising input costs have had a cascading effect on manufacturing sectors worldwide, including construction, automotive, and infrastructure—core end-markets for aluminium extrusions.

The Russia-Ukraine war has had a far-reaching impact on the global aluminum extrusion market in 2025. Disruptions in supply chains, shifts in trade dynamics, and increased market volatility have posed significant challenges to the industry. However, these challenges also present opportunities for innovation and strategic adaptation. By embracing alternative sourcing strategies, investing in recycling initiatives, and diversifying markets, stakeholders can navigate the complexities of the current geopolitical landscape and position themselves for resilience in an evolving global market.

Regional Business Impact Eastern and Central Europe

Economic activity has been subdued due to regional instability, disrupted trade, and subdued investor confidence. Reconstruction needs in Ukraine, however, may represent a long-term opportunity for infrastructure players.

Western Europe

Industrial output in Western Europe has been affected by energy rationing, input scarcity, and cautious capital investment. Companies are reconfiguring supply chains and reassessing manufacturing footprints to mitigate geopolitical risk.

United Kingdom and North America

While less directly affected, these regions have experienced indirect consequences, including higher raw material costs, currency fluctuations, and increased demand for alternative energy and materials sourcing.

Long-Term Outlook and Opportunities

Despite near-term uncertainties, the conflict has accelerated certain structural shifts that may benefit the aluminium and manufacturing sectors in the longer term:

• European Reindustrialization: The EUs push to reduce external dependencies has led to significant investment in local manufacturing and supply chain sovereignty.

• Green Energy Transition: The energy crisis has catalyzed a faster transition to renewable energy and electric vehicles—key growth drivers for aluminium extrusions.

• Post-War Reconstruction: The eventual reconstruction of Ukrainian infrastructure could generate substantial demand for building materials, transportation systems, and modern manufacturing, where aluminium will play a key role.

The Ukraine–Russia war continues to present challenges in the form of economic uncertainty, elevated costs, and geopolitical risk. However, it also underscores the importance of resilient supply chains, sustainable energy use, and strategic agility. As the situation evolves, our focus remains on safeguarding operational continuity, adapting to new market realities, and positioning ourselves to capitalize on long-term structural changes that are reshaping global industry.

Indian Aluminium & Aluminium Extrusion Market Outlook

The India aluminum extrusion market size reached 982,980.4 Tons in 2022. Looking forward, IMARC Group expects the market to reach 1,288,202.3 Tons by 2028, exhibiting a growth rate (CAGR) of 4.49% during 2023-2028.

Aluminium extrusion is a widely adopted manufacturing process that entails the transformation of aluminium alloy into specific cross-sectional profiles. The procedure involves the utilization of a cylindrical billet of aluminium, which is heated to a pliable state and then forced through a shaped die by a hydraulic press or ram.

The result is a uniform, elongated piece with the same profile as the die, commonly used in the production of structural components, window frames, and various industrial applications. Aluminiums lightweight nature, coupled with its remarkable strength and resistance to corrosion, makes it an ideal material for extrusion. The efficiency of this process has led to its broad utilization in multiple sectors, including automotive, construction, electronics, and transportation, representing a critical facet of modern industrial manufacturing.

The Indian Aluminium Extrusion market is witnessing substantial growth, buoyed by the expanding construction industry in India, with its rising demand for lightweight and energy-efficient materials. Additionally, the automotive sectors increasing reliance on lightweight and corrosion-resistant components has fostered the markets expansion. Along with this, the governments push towards infrastructure development and sustainable practices further stimulates growth, aligning with global environmental concerns. In addition, advancements in extrusion technology, enabling more intricate and customized shapes, have unlocked new applications and opportunities within the Indian market.

Apart from this, the trend towards the utilization of recycled aluminium, reflecting the global shift towards sustainability, has also positively impacted the market. This, together with the anticipated growth in the electronics and transportation sectors is creating a positive market outlook. Some of the other factors driving the market include rapid industrialization and changing consumer preferences.

OPPORTUNITIES AND THREATS

We are constantly on the lookout for opportunities that knock on our doors, while keeping tab on the likely threats to our business.

Opportunities-

Penetration of motor vehicles in developing economies and growing industrialization in emerging economies provide wider opportunities for the growth of the Aluminium sector.

Threats-

Competition from low cost manufacturers is likely to continue.

COMPANY OVERVIEW AND GROWTH STRATEGY

Improved service, prompt response and wider reach to dealers, distributors and the satisfaction of customers have been our continued endeavour for business development.

Success Drivers

Our Legacy: With an experience spanning a rich 33 years, our Company enjoys a number of first mover advantages comprising a comprehensive understanding of the aluminium and aluminium extrusions market, reputed brand and a strong customer base.

Integration: We possess in-house facilities for –- Melting, casting and homogenization of billets, - Extrusions manufacturing with three press lines - Die manufacturing,

- Manufacturing various value added products of extrusions for engineering applications, and - Manufacturing Power Transmission & Distribution Hardware

With 3 extrusion press lines, the Company has a capacity to produce 15000MT of Aluminium Extrusions, which as per the information available with the Company.

Die Library: The Company possesses an inventory of more than 5000 dies to manufacture over 3500 profiles. The Company maintains back-up dies for meeting the requirements of fast moving profiles.

Availability of raw material: The Company accesses raw material (aluminium ingots and billets) from two renowned and proximate primary metal manufacturers- Vedanta Aluminium, and NALCO, The Company is one of Indias largest institutional aluminium ingots/billets consumers with corresponding purchase economies.

Quality assurance: The Companys manufacturing facility is accredited with the prestigious ISO-9001:2015 certification endorsing its strong quality systems. Our Company continues to emphasize on maintaining the utmost quality and safety standards in its factory. Our Company is AS9100D (technically equivalent to EN 9100:2018 and JISQ9100:2016) ISO 14001:2015, ISO 45001:2018 certified, INHOUSE LABORATORY, BIS LICENSE FOR IS733, IS1285, IS7092, IS5082. The Company supplies extrusions as per tolerances laid down by the Bureau of Indian Standards in accordance with BIS: 2673-1979, BIS: 3965-1981 and BIS: 6477-1983, and with even stringent tolerances as per customer needs based on mutual agreement.

The sharp focus on Quality in all its initiatives has enabled our Company to launch some specific value-added services Product applications: We manufacture extruded products for varied applications, viz.:

- Profiles for Architectural Applications such as Building Systems, Structural Glazing, Curtain Walls, Aluminium Rolling Shutters, Windows, Doors, Partitions, False Ceilings, Tower Bolts, Hand Rails, Door Handles, Hinges, Drapery Rods, Modular Furniture, etc.

- Profiles for Aluminium Form work

- Profiles for Road Transport Sections

- Profiles for Rail Coach Windows & Doors

- Profiles for manufacture of Automobile Components

- Profiles for Heat Transfer in Electronics & Electrical Gadgets

- Profiles for Electrical applications such as Tubes and Flats for Bus Bars, Transmission Line Hardware such as P.G. Clamps, H-Connectors, Repair Sleeves, Lugs, Solar Panels etc.

- Profiles for Engineering Applications such as Motor Housings, Gear Pump Casings, Ferrules, A.C. Louvres, Machinery Parts, Elevators, Pneumatic Actuators, Pneumatic Cylinders, Valve Bodies, etc.

- Profiles for various Defence Applications and many more.

The Company also has necessary set up to supply extruded & cold drawn round bars, hexagonal bars and tubes in various thicknesses in straight lengths for various engineering applications. It also has a set up to supply extruded & cold drawn rods/wires in coil form to be used as armour rods, lamp pin stock, metallizing wire, rivet stock, welding filler wire (MIG & TIG), etc.

Customer profile: The Company possesses a portfolio of over 500 reputed customers. The Company has retained most of the customers over a period of 33 years.

Our Company has an installed capacity to produce 15000 MT of extrusions per annum. As against this, our production for the financial year 2024-25 was 13433 MT. We have a significant spare capacity to increase production and sales volume.

Our Company is planning to minimise the gap of installed capacity and actual production during the financial year 2024-25. The segment-wise expected demand growth is given hereafter:

1. Automotive Sector- Aluminum offers the fastest, safest, most environmentally friendly and value-added way to decrease mass and increase vehicle performance, boost fuel efficiency, extend battery range and reduce emissions. Aluminum builds a better vehicle period. As the industry readies for a wave of electrified powertrains and battery electric vehicle platforms, aluminum is the preferred choice of many automakers thanks to its ability to reduce vehicle weight extending vehicle range and countering heavy components like EV batteries. The most innovative vehicles of today and tomorrow are designed with aluminium.

2. Power Sector – Power and infrastructure sectors in India are witnessing and would continue to witness strong growth in the coming years with the boost from policy measures and budgetary allocations. Our country faces continuing power shortage. More investments to plug the gap means more aluminium extrusions.

3. Engineering Applications- Aluminium Extrusions are increasingly being used to manufacture forged and forged & machined components for use as parts of machinery, fasteners, rivets, wire rope ferrules, motor housings for domestic pumps, hydraulic gear pump casings, heat sinks, ladders, elevators, etc.

4. The Sustained Agriculture Emphasis in our Country – More investments in irrigation mean more aluminium extrusions.

5. Solar Energy Industry is an emerging opportunity, which implies significant consumption opportunities for aluminium extrusions from solar panels over the years to come. Century Extrusions Ltd.

6. Indian Defence Sector: Aluminium extrusions are consumed in a wide range of applications in this sector, comprising tail-end fuse connectors for detonator shells and grenades, frame-work for tents and as a roll-over ‘mattress for tanks to navigate difficult terrains. Given the significant supply deficits, high growth potential and conducive government policies, a large opportunity.

Power T & D Hardware

India today stands at the threshold of being an economic superpower. Power is one of the key requirements to support and sustain our economic growth. Power is a key ingredient in driving growth in manufacturing & services. Aluminium finds growing use in this space as it is directly used in the overhead transmission and distribution lines. Power Transmission and Distribution Hardware Fittings are required for use on Overhead Transmission and Distribution Lines for connecting Insulators with Tower/Pole Cross Arms and Insulators with conductors. The Company has manufacturing facilities for casting of Aluminium Alloys, manufacturing of Extruded products in Aluminium & its Alloys, Wire Drawing, Helical Products, Fabrication of Ferrous & Non-Ferrous Components, Argon Welding, Electric Arc Welding, Machining, Bundle Spacer

Assembly, Vibration Damper Assembly, Conductor Accessories, Clamp Connectors for Hardware Assembly, and manufacturing of Tools, Dies

& Moulds. Aluminium is also used in insulated and underground cables laid in large populated urban areas and in reserved forests (to avoid deforestation), Round Tubes are used for corona control rings, grading rings, mid-span compression joints, dead-end clamps and jointing sleeves, among others, signifying huge opportunities for extrusions in the power sector. The Company has successfully registered itself as a supplier of its products with a number of State Electricity Boards during the year and the process is continuing. The process will get further momentum as company achieves requirements of minimum years of supply track record and experience, with each passing year. The Company has received substantial orders from the said State Electricity Boards, Powergrid, Power Generating Stations, Transmission and Distribution Line State based utilities and Erection Contractors.