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Hindalco Faces Minor Disruption in Extrusion Business
15 Mar
Summary
- Gas suppliers' Force Majeure impacts Hindalco's extrusion segment.
- The affected segment represents less than 0.1% of total operations.
- Other operations, including primary aluminium, remain unaffected.
Hindalco Industries is managing a potential disruption within its aluminium extrusion business, stemming from a Force Majeure declaration by select gas suppliers. The company has notified customers of this development, which could impact supply in a segment of its extrusions operations.
Despite this, Hindalco's aluminium extrusion business has not ceased operations. The company emphasizes that the affected segment constitutes a minimal portion, less than 0.1%, of its total operations.
Crucially, all other downstream and upstream activities, notably primary aluminium production, are operating as usual. These segments benefit from captive power generation and established alternative energy arrangements, ensuring continuity. Hindalco operates extrusion plants across multiple Indian states, including Uttar Pradesh, Kerala, Dadra and Nagar Haveli, and Andhra Pradesh, with a combined annual capacity of 115,000 tonnes.
