What is a aluminium extrusion project report?
An aluminium extrusion project report is a detailed project report (DPR) for a plant that heats aluminium alloy billets and presses them through steel dies into profiles, tubes and sections. It sets out the press size, process, machinery, billet and die costs, market, project cost, five-year projections, DSCR and break-even.
Promoters use it to size the press and finishing lines and to raise a term loan; banks use it to judge whether the plant can repay.
Also known as: aluminium extrusion plant project report, project report on aluminium extrusion, aluminium extrusion business plan, aluminium profile manufacturing DPR.
Aluminium extrusion manufacturing plant cost in India
Our sample report models a plant extruding 5.5 metric tonnes of profiles per day, or 1,815 MT per year, over 330 working days. It starts at 60% of capacity and reaches 80% in Year 5, selling at ₹2,90,000 per MT before GST.
| Land and site development | 91.42 |
|---|---|
| Building and civil works | 320.62 |
| Plant and machinery | 659.59 |
| Other fixed assets | 75.39 |
| Contingencies | 49.01 |
| Preliminary and pre-operative | 29.90 |
| Working capital margin | 129.53 |
| Total | 1,355.46 |
| Promoter's contribution (25%) | 338.86 |
|---|---|
| Term loan from bank (75%) | 1,016.60 |
| Cash credit limit (separate) | 388.60 |
| Total project cost | 1,355.46 |
Term loan at 10.5% with a 6-month moratorium and 54 monthly instalments. Lowest yearly DSCR (debt service coverage ratio) in the sample is 1.88. All figures are illustrative.
Aluminium extrusion manufacturing process
Most Indian plants extrude 6000-series alloys by direct hot extrusion: a heated billet is pushed through a fixed die. The steps below run as one line, from billet store to packed bundle.
- Billet cutting
Long logs of homogenised alloy are cut to billet length on a hot log shear or saw, sized to the profile weight per push.
- Billet and die heating
Billets are heated to roughly 450–500 °C in a gas-fired or induction heater. Dies are soaked separately in a die oven so they do not crack.
- Extrusion
The press ram forces the billet through the die in the container; the last part of each billet, the butt, is sheared off and returned as scrap.
- Press quenching
Fans or water mist at the press exit cool the profile quickly, which keeps the alloy ready to gain strength in ageing.
- Stretching and cutting
A puller guides the profile down the run-out table; a stretcher then pulls it straight and a finish saw cuts it to customer lengths.
- Ageing
Profiles are baked in an ageing oven at around 175–200 °C for several hours to reach the T5 or T6 temper, then hardness is checked.
- Finishing and packing
Profiles are sold mill finish, anodised or powder coated, then wrapped in film or paper and bundled so the surface is not scratched.
Which press size and finishing route should you choose?
Four early choices set the project cost and the market you can serve. The ranges here are indicative and are fixed only after a product mix and die list are agreed.
| Press size | Presses of about 600–1,000 tonnes suit light window, door and furniture sections. Presses of about 1,400–1,800 tonnes cover most architectural and solar profiles. Large industrial and transport sections need much bigger presses and billets. |
|---|---|
| Billet source | Buying billets keeps capital cost low. Casting your own billets from scrap and primary metal adds a melting furnace, casting and homogenising, more working capital and a stricter pollution consent. |
| Finish | Mill finish needs the least investment. Anodising needs acid and alkali tanks, rectifiers and an effluent treatment plant. Powder coating needs a pretreatment line, booth and curing oven, and suits coloured architectural work. |
| Dies | Most new plants buy dies from die makers and keep an in-house correction and nitriding shop. The size of your die library decides how many buyers you can serve. |
| Heating | Gas-fired billet heaters are common where LPG or piped gas is available; induction heaters cost more but heat faster and suit smaller batches. |
Aluminium billets and dies: raw material cost
Billets of 6063 alloy are the standard input for windows, doors and solar frames; 6061 and 6082 are used for stronger structural sections. Butt ends, profile ends and rejects mean only part of each billet becomes saleable profile, so the report must apply a recovery rate to billet consumption.
| Raw material | Share of cost | Year 3 (₹ lakh) |
|---|---|---|
| Aluminium billets | 90% | 1,971.96 |
| Dies | 10% | 219.11 |
| Total | 100% | 2,191.07 |
Billet prices follow the international aluminium price and change month to month. A report for your plant uses current billet quotations and your expected recovery.
Machinery for an aluminium extrusion plant
The extrusion press is the largest single item, at 45% of the machinery cost in our sample. The billet heater, ageing oven and anodising plant are costed at the same amount each.
| Machine | What it does | Sample cost (₹ lakh) |
|---|---|---|
| Extrusion press | Pushes the hot billet through the die | 296.81 |
| Billet heater | Brings billets to extrusion temperature | 98.94 |
| Ageing oven | Hardens profiles to the required temper | 98.94 |
| Anodising plant | Gives profiles a hard, coloured oxide finish | 98.94 |
| Cutting | Cuts billets and finished profiles to length | 65.96 |
| Total plant and machinery | 659.59 | |
Sample groups for a 5.5 MT per day line. A full machinery list also covers the die oven, puller, stretcher and run-out table; get current quotations before you finalise.
Power, fuel and manpower for the plant
Billet heating, press hydraulics and the ageing oven are the main energy loads, so power and fuel are the largest cost after raw materials in our sample.
| Power and fuel | ₹292.84 lakh in Year 3 in our sample, or 7.9% of sales, covering electricity and heater fuel |
|---|---|
| Manpower | 105 people: 16 in management, supervision and administration, 37 skilled workers and operators, 52 semi-skilled and unskilled workers |
| Wage bill | ₹226.26 lakh in Year 1, rising 5% a year in the projections |
| Water | Cooling water for the press hydraulics and quench, plus rinse water if you anodise on site |
| Standby power | A DG set is part of other fixed assets of ₹75.39 lakh, with electrification, furniture and lab equipment |
Licences and BIS certification for aluminium extrusions
Plan the BIS licence early. A Quality Control Order (QCO) means covered products cannot be made or sold without a BIS licence and the Standard Mark.
| BIS licence | Bars, rods and sections to IS 733 and extruded round tubes and hollow sections to IS 1285 are covered by the Aluminium and Aluminium Alloy Products QCO. Dates are phased by enterprise size; confirm the current date with BIS. |
|---|---|
| Pollution board consent | Consent to establish and operate from the State Pollution Control Board. Conditions depend on whether you anodise, powder coat or melt scrap on site. |
| Factory licence | Under the Factories Act and state rules, with approval of the building plan and press foundations |
| Fire safety | Fire NOC, with attention to fuel storage for the billet heater and ovens |
| Power | HT industrial power connection sanctioned for the press, heaters and ovens |
| Business registration | Udyam (MSME) registration and GST registration |
Who buys aluminium extrusions in India?
Building work is the main outlet: window, door, facade and partition systems in homes and offices. Solar module frames and mounting structures, kitchen and furniture systems, LED and electrical housings, and bus, coach and vehicle parts add steadier industrial orders.
- Window, door and facade fabricators
- Solar module and mounting structure makers
- Aluminium section dealers and stockists
- Furniture and modular kitchen makers
- LED, electrical and electronics enclosure makers
- Bus body, railway coach and auto component makers
How profiles are priced: buyers usually pay the billet rate on the order date plus a conversion charge per kg. Your margin is the conversion charge, so the project report should test it, not just the sale price.
Mistakes that weaken an aluminium extrusion project report
- One flat price per kg
If sales are priced without separating billet rate and conversion charge, a rise in aluminium prices hides inside the margin and DSCR looks safer than it is.
- No recovery loss
Butts, ends and rejects are lost on every push; billet consumption has to be higher than saleable output.
- Dies treated as a one-time cost
Every new section needs its own die, and dies wear and need correction. The report should carry a running die budget.
- Anodising without effluent planning
An anodising line without an effluent treatment plant and matching consent can stop production after start-up.
- Full press hours from day one
Die trials, short runs and changeovers keep early output well below rated capacity, so utilisation must ramp up.
How NPCS helps you plan an aluminium extrusion plant
- Press size and product mixMatch press tonnage, billet size and die list to the sections your buyers order.
- Machinery and finishing linesCompare press, heater, ageing, anodising and powder coating options with quotations.
- Bank-ready project reportConversion margin, recovery, working capital, DSCR and break-even in the format your lender expects.
- Approvals and layoutBIS licence route, pollution consent, power load and a layout that fits the run-out table.
NPCS's client list records 116 assignments in metal products, including aluminium cans and aluminium powder. The NPCS project team, led by founder Ajay Kumar Gupta, has prepared project reports since 1994.
What's inside the aluminium extrusion sample report
- Introduction
- Uses and applications
- Market potential
- Manufacturing process
- Raw materials
- Plant and machinery
- Land, building and utilities
- Manpower
- Licences and approvals
- Project cost and means of finance
- Working capital
- Projected profitability
- Cash flow statement
- Projected balance sheet
- Depreciation
- Term loan repayment
- Debt service coverage
- Break-even analysis
- Financial ratios
- Key assumptions
- Conclusion
- Monthly loan repayment schedule
18 pages, five-year projections, illustrative figures.
Open sample reportFree sample or a report for your project?
| What you get | Free sample | NPCS report for your project |
|---|---|---|
| Capacity and location | Typical unit | Your capacity, site and state |
| Figures | Illustrative | Built on current prices and quotations |
| Machinery suppliers and quotations | No | Yes |
| Market survey for your region | No | Yes |
| Bank or scheme format (PMEGP, term loan) | No | Yes |
| Use for a loan application | No | Yes |
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Aluminium Extrusion project report: frequently asked questions
What is the aluminium extrusion manufacturing plant cost in India?
A single-press plant that buys billets usually needs about ₹10–25 crore, including land, building and working capital margin. Adding a billet casthouse or larger anodising and powder coating lines takes it well beyond that. Our sample report models a 5.5 MT per day plant at ₹1,355 lakh. These ranges are indicative; your report costs your own press size and site.
Which raw material is used for aluminium extrusion?
Aluminium alloy billets are the main input, usually 6063 for windows, doors and solar frames, and 6061 or 6082 where higher strength is needed. In our sample report billets make up 90% of raw material cost and dies the other 10%. Billet prices follow the international aluminium price, so the report should test a price rise.
What machinery is needed for an aluminium extrusion plant?
The core line is a hydraulic extrusion press with container and ram, a billet heater, a die oven, a puller, a stretcher, a finish saw and an ageing oven. Most plants also add an anodising or powder coating line and a die correction shop. In our sample the press is the largest item at ₹296.81 lakh.
Is the aluminium extrusion business profitable?
It can be, when the plant earns a steady conversion margin over the billet price. In our illustrative sample, return on investment is 29% in Year 3, break-even is 37% of capacity and payback is about 3 years. Real results depend on press loading, recovery, die costs, finishing mix and how quickly buyers pay.
Is BIS certification mandatory for aluminium extrusions?
Bars, rods and sections under IS 733, and extruded round tubes and hollow sections under IS 1285, are covered by the Aluminium and Aluminium Alloy Products Quality Control Order. The order has been re-issued with phased dates for micro and small units, so check the current date on the BIS website before you plan production and sales.
How many people does an aluminium extrusion plant need?
Our sample plant of 5.5 MT per day employs 105 people: 16 in management, supervision and administration, 37 skilled workers and operators, and 52 semi-skilled and unskilled workers. Press operators, die setters and ageing and finishing staff are the key skilled roles. Headcount rises with shifts and with in-house anodising or coating.
Is the sample report free, and can I use it for a bank loan?
The sample is free to view and download. It is an illustrative report that shows the format and depth of an NPCS report. Its figures are representative and not taken from a real project, so it should not be submitted to a bank. For a loan, NPCS prepares a project report PDF for your own press, site and lender.
Sources and references
- Aluminium and Aluminium Alloy Products (Quality Control) Order, 2025Ministry of Commerce and Industry, published by the Bureau of Indian Standards, checked Oct 2026
- IS 733: Wrought aluminium and aluminium alloy bars, rods and sections for general engineering purposesBureau of Indian Standards, checked Oct 2026
The NPCS project team, led by Ajay Kumar Gupta
This page and its sample report are prepared and reviewed by the NPCS project team, which has written techno-economic feasibility studies and detailed project reports since 1994.
Ajay Kumar Gupta founded Niir Project Consultancy Services (NPCS) and leads the organisation. With 40 years of experience in MSME project consulting, he has built the team that has delivered more than 28,000 project reports for clients worldwide, helping entrepreneurs plan and finance profitable manufacturing businesses.
- Published
- Last updated
- Next review
- Oct 2027
- Reviewed by
- NPCS project team
This page is reviewed every 12 months, or sooner when scheme limits, GST rates, BIS rules or pollution categories change. The sample report is illustrative: its figures are generated from industry-typical ratios for a unit of this size, checked so every statement balances, and are not taken from any client project.